The document discusses the economic benefits of investing in transportation infrastructure in the Great Plains region of the United States. It notes that the region accounts for a significant portion of US GDP, trade, agriculture, and energy production. Transportation improvements could reduce business costs and transit times. Studies show that past transportation investments in other states have led to thousands of new jobs and billions in increased economic output. A proposed Ports to Plains transportation corridor in the Great Plains could generate $4.5 billion in economic benefits with a cost of $2.87 billion, yielding a return on investment of 3 to 1.

1. Return on Transportation Investments September 20, 2007 Denver

2. “ Investment Decisions are made on Return on Investment analyses or … Instinct or Vision”

4. A Strong Case for Investment in The Great Plains Corridor 14% of US GDP 38.5 million citizens $166.7 billion trading region with Canada and Mexico 22.1% of U.S. Agricultural Goods 25% of U.S. ethanol refining capacity NAFTA’s #2 busiest port Great Plains International Conference 2007

5. Great Plains “Great” GDP Bureau of Economic Analysis 2007

6. Needs & Investment 70% increase in freight movement by 2030 International trade is forecast to grow faster than domestic trade 28% of production in the United States is based on just-in-time delivery (AASHTO 2002). US logistics costs exceeded $1 trillion in 2000, comprising 10 percent of GDP (Delaney).

7. Transportation Infrastructure Investment Increased Transportation Capacity, Efficiency, Reliability, and Level of Service Transportation Cost Savings Transit Time Savings (Reliability Improvement) Business Expansion (Relocation and Restructuring) Increased Productivity Increased Competitiveness Increased Economic Growth Transportation Investments & the Economy

8. Increase in Regional Employment & Income Other Effects Additional Reorganization effects (improved/new products) Third-order Benefits Reorganization effect gains (increases in output/input) Second-Order Benefits Immediate cost reductions (reduced transit times/increased reliability) First Order Benefits Effects of Improved Freight Transportation

10. ROTI for the Ports to Plains Corridor Ports to Plains CDMP 2004 $2,537 Funds Needed to Develop Corridor ($331) Committed Funds $2,868 Development Costs $’s in millions (2004 dollars)

11. Summary of Economic Benefits by Category Ports to Plains CDMP 2004 $216 2,031 Roadside Services (2030) $27.0 280 Tourism (2030) $4,258 39,636 Distribution with some Manufacturing (2030) $41 2,500 Construction (person years) Total Income 2006-2030 (Millions 2004$ @ 7%) Jobs Category

14. Increase in Regional Employment & Income Other Effects Additional Reorganization effects (improved/new products) Third-order Benefits Reorganization effect gains (increases in output/input) Second-Order Benefits Immediate cost reductions (reduced transit times/increased reliability) First Order Benefits Effects of Improved Freight Transportation

16. Alabama Auto Suppliers Locations Auto Assemblers cluster at locations featuring one or more four-lane highways JIT shipments require connectivity Proximity to 4-lane highways

17. “ on-line” order to shipping the assembled computer with software loaded and tested reduce parts inventory from an industry norm of 75 to 100 days to 6.6 days 36 hours

18. Third Order Benefits

19. What Other States Have Found (1) Moore School of Business, 2003 “ The South Carolina Department of Transportation and its Economic Impact on the State of Carolina” (2) Cambridge Systematics, Inc. 2003 “Transportation Improvements Grow Wisconsin’s Economy: The Economic Benefits of Transportation Benefits” 4,300 $156 million increase in personal income Additional $275 million annually Wisconsin (2) Job Creation Economic Benefit Level of Investment State 24,000 $2.1 Billion $950 million annually South Carolina (1)

21. “ Go the Distance…… They will come… they will most definitely come”