1. 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?
1
presented to
NADO Rural Transportation Conference
presented
byCambridge Systematics, Inc.
April 25, 2013
Paula Dowell, PhD

2. Today’s Talking Points
Why freight corridors and why now?
What can freight do for me?
Where are the opportunities?
How do we position?

3. 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
3

4. Intense Competition
4

5. Gateway Competition in the U.S.
5

6. NATIONAL GATEWAY AND
CORRIDOR STUDY
6

7. 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.

8. 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 climateEconomic
• Regulations – trucking and security
• Energy policyPolicy
• Passenger/freight interaction
• Increase use of intermodal
• Mode specific constraints impact whole
system
Infrastructure

9. 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

10. 10
Contingent Implications
Scenario Implications
Robust Implications
Acid
testing
current
strategy
No
Gainer
No
Brainer
No
Regret
New strategy
development
process
Detailed
Review
Risk
Management
Sensors
in the
Ground
Needs Under Alternative Futures

11. Alternative Futures Comparisons
18
13
26
15
23
20
17
15
13
8 9
17
3
7
7
2
2
2
5
8
9
9
9
11
4
16
7
12
3
14
5 5 5 6
8
13
10 8
10
0
5
10
15
20
25
30
35
CumulativeScores
More Important Less Important Same Importance

12. 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

13. 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
13

14. Growth Potential
14

15. 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
15

16. Transportation Matters to All
Industries
16

17. Logistics and Cargo Based
Development Opportunities
Port centric integrated logistics centers (ILCs)
Non-port centric ILCs
Industrial site development
17

18. Integrated Logistics Centers (ILCs)
18
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

19. ILCs Driven by Population and
Intermodal Terminals
19

20. 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

21. Market Access for Industrial
Development
21
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

22. Positioning for Logistics Based
Development
22
Approach Examples
Strategic Transportation Systems GoOHIO
Florida’s Strategic Intermodal System
GA Statewide Freight and Logistics Study
MS Trade and Transportation System
Trade Corridor Initiatives I-95 Corridor Coalition
West Coast Corridor Coalition
National I-10 Freight Corridor
CANAMEX
Rail Partnerships Heartland Corridor
Crescent Corridor
National Gateway
CREATE
Regional Approaches Connecting Appalachia
Central Florida Regional Goods Mobility Plan
Southern MS Regional Freight Study

23. Inland Rail Development Opportunities
Three Scenarios for Southern MS
23
“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 rail
Up to 500 acres industrial
25+ acres rail
500 to 1000 acres industrial
No Port-driven DCs Port-driven DC potential
TBD
Port-Driven DC potential
TBD

24. Screening Factors for Identifying
Potential Sites for Development
24
Evaluation Factor Considerations
Parcel Assemblage Difficulty Number of parcels
Ownership
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-site
Proximity to highways, utilities,
workforce
Order of Magnitude Cost Land, preparations, infrastructure,
opportunity costs

25. 25
Considerations
25
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

26. Site Screening Framework
26
Intermodal Rail Development

27. 27
Site Evaluation Framework
IntermodalRailOpportunities
Business Attraction/Expansion Opportunities
1
1
30
30
D
C
B
A
F
E

28. 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
28

29. CONTACT INFO
29
Paula Dowell
Cambridge Systematics
pdowell@camsys.com