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Freight’s Role in Economic Development: Urban & Rural Cases. Glen Weisbrod Economic Development Research Group, Inc. 2 Oliver Street, 9 th Floor Boston, MA 02109 USA [email protected]. Economic Development Perspective. Freight Focus on Access / Connections - PowerPoint PPT Presentation
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Freight’s Role in Economic Freight’s Role in Economic Development: Development:
Urban & Rural CasesUrban & Rural Cases
Glen WeisbrodGlen WeisbrodEconomic Development Economic Development Research Group, Inc.Research Group, Inc.
2 Oliver Street, 92 Oliver Street, 9thth Floor FloorBoston, MA 02109 USABoston, MA 02109 USA
[email protected]@edrgroup.com
22
Economic Development PerspectiveEconomic Development Perspective
Freight Focus on Access / Connections• Invest to provide connectivity (linkages);• Benefit is primarily in maximizing accessibility to
resources & markets.
33
Relevance of the Econ Devel ViewRelevance of the Econ Devel View
• Areas left out of the interstate highway system; lacking basic connections
• Existing connections degrading due to congestion
• New connections justified by emerging global economy (intermodal, air, seaport connections)
44
Case StudiesCase Studies
• Vancouver, BC Gateway: Impact Study and Actions.
• Appalachian International Trade Clusters:
Needs and Opportunities.
55
Greater Vancouver Gateway CouncilGreater Vancouver Gateway Council
66
Elements of StudyElements of Study
Regional economic development consequences of investment (vs. failure to invest) in road & rail system improvements to address rising traffic congestion.
Involvement of the Greater Vancouver Gateway Council, Greater Vancouver Transportation Authority (GVTA / TransLinks), BC Transport, Transport Canada and Dept. of Western Economic Diversification
77
Central or Peripheral?Central or Peripheral?
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Global ChangeGlobal Change• Technology – intermodal, containerized• Trade Corridors – Pacific Rim growth• Consolidation – mega ports and gateways
Globalization…
Highest Value (’02) Minerals & Coal Wood Fertilizer Mechanical Equip Paper
Fastest Growth (’92-’02) * Electrical Machinery * Plastics * Furniture * Instruments * Motor Vehicles
W. Canada Exports
99
Western Transport DependenceWestern Transport Dependence
0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60
Saskatchewan
Ontario
Nova Scotia
Newfoundland+PEI
Alberta
Quebec
Br. Columbia
New Brunswick
Manitoba
Concentration of Jobs in Transportation, Rel to Canada Average
Western Provinces
1010
Westward Flows to AsiaWestward Flows to Asia
Asia $11bAsia $11bThrough VancouverThrough Vancouver(Pacific Marine Gateway)(Pacific Marine Gateway)
Europe/Africa $3b
1111
Relative Growth in Container TrafficRelative Growth in Container Traffic
0%10%20%30%40%50%60%70%80%90%
100%
NorthAmerica
Canada West Coast(US andCanada)
Vancouver
1991-1996 1996-2001
North Canada West Coast Vancouver America (US-Canada) Gateway
Growth of TEUs
1212
Regional Growth ProjectionsRegional Growth Projections
0
100
200
300
400
500
600
2001 2021
Air Cargo
Truck Cargo
Rail Cargo
Maritime Cargo
2002 – 2021 ForecastsPopulation +42%Car Traffic +39%Truck Traffic +56%Rail tonnes +60%
Cargo Shipments in BC, (millions of tonnes)
1313
Concern for CompetitivenessConcern for Competitiveness
1414
Border Facilities
30 Marine Terminals, 22 Rail Yards 6 Border Crossings, 1 Airport
On Site: 75,000 jobs W. Canada: 145,000 jobs, $19B output
1515
Objectives of the MCTSObjectives of the MCTS
1616
To Trans Can Hwy
To US Border
1717
Transport Capacity Issues Transport Capacity Issues (2021)(2021)
Invest in Major Corridor Transportation System …or Status Quo?
Compared to the Investment Scenario…• “Status Quo” traffic congestion will add over
112,000 vehicle-hours of delay daily• “Status Quo” rail bridge limitations will reduce
train activity by 11/day
1818
Analysis ProcessAnalysis Process
Analysis process (DelCan, GVTA and Economic Development Research Group) :
• detailed traffic simulation model• railroad facility supply/demand forecasting• four province economic simulation models• international trade and competitiveness model• analysis of infrastructure scenarios on
production, imports/exports, & cost sensitivity.
1919
Direct EffectsDirect EffectsGround Transport • Cars – increase in travel expense ($134 million/yr)• Trucks – raise shipper costs; reduce business
competitiveness & attraction ($280 million/yr)• Rail – capacity limitation: businesses seek
alternative routes at higher cost (1100 railcars/day)
Ports • Marine ports – higher cost, shift activity elsewhere• Airport – raise costs for airport use
Diff: Build vs. Not
2020
Results: Economic ImplicationsResults: Economic Implications
Effects for City, Metro, Province and W. Canada
Economic Impact:• 7,300 to 16,300 jobs• $ 475 million to $ 1.1 billion of GDP /yearEconomic Stakes:• Over 150,000 jobs in production industries
produce over $30 billion of exports /yearTotal Benefit (incl. personal time)• $806 million to $1.5 billion of benefit value /year
2121
Plans In ProgressPlans In Progress
A New Crossing of the Fraser River and Regional Road Improvements
Improve the Major Road Network through eight new road projects and a new crossing of the Fraser River. Build the Richmond-Airport-Vancouver rapid transit line linking airport and downtown/waterfront.
ALSO…North Fraser Perimeter Road Fraser Highway Widening Dollarton Bridge Expansion (river crossing) Coast Meridian Overpass (rail yard crossing)204 Street Overpass (rail track crossing)Main Street Widening (port access for trucks). Murray-Clarke Connector (crossing RR tracks at port)David Avenue Extension (river crossing)
2222
Analysis of Global Competitiveness of Selected Industries and Clusters in the Appalachian Region
Study Components:• Industry Analysis• Market Analysis• Transportation Analysis
2323
Selection of Export ClustersSelection of Export Clusters
• State Initiatives and Targeted Industries• Location in Appalachia• Growth in Foreign Demand• Competitive Pressures• Current Trade Relations• Prospects for Geographic Expansion• Regional Economic Impacts & Leakages
2424
Selected IndustriesSelected Industries
• Electronic Components • Food Processing Machinery• Packaging Machinery• Wooden household Furniture • Upholstered Household Furniture• Auto Parts
2525
Foreign MarketsForeign Markets
Motor Food Upholstered WoodenVehicle Processing Packaging Electronic Household Household
Destination Parts Machinery Machinery Components Furniture FurnitureAfrica 0.6% 2.3% 1.4% 0.8% 0.9% 1.3%Asia 11.1% 20.8% 12.5% 30.2% 18.0% 28.4%Australia 1.2% 3.2% 3.9% 1.2% 0.9% 0.5%Canada 65.6% 20.6% 26.1% 25.6% 48.9% 42.6%Central America 0.2% 3.3% 3.1% 1.4% 3.4% 7.0%Europe 10.3% 32.1% 38.1% 25.7% 22.3% 15.3%Mexico 9.5% 8.5% 9.3% 9.9% 3.4% 3.0%South America 1.5% 9.3% 5.6% 5.1% 2.2% 1.8%
Appalachian Exports by Industry and Destination(Percent of Appalachian Industry Exports)
2626
Transportation Mode by Transportation Mode by CommodityCommodity
Commodity Highway Rail Water Air
Furniture 95.61% 3.94% 0.03% 0.42%
Machinery 95.89% 2.75% 0.38% 0.98%
Electrical Equipment 94.38% 3.70% 0.09% 1.83%
Transportation Equipment 87.24% 12.16% 0.09% 0.51%
Transportation Mode Shares Used to Deliver Exports to Port of Ladingby Commodity
2727
““Ports” for Appalachian ExportsPorts” for Appalachian Exports
• Most important ports of shipments out of US– Detroit, MI– New York, NY (the port and JFK Airport)– Miami (the port and Miami International)
• Other ports– Buffalo-Niagara Falls, NY and Champlain-
Rousse Point, NY; Charleston SC; Norfolk, VA; Baltimore, MD; Laredo and Dallas-Fort Worth, TX; and Jacksonville, FL
2828Florida
States or Origin &% of ARC Exports:•TN- 22%•AL- 20%•WV-15%
Key Ports for Export:•Detroit MI•Port Huron MI•Buffalo NY•Miami FL•Jacksonville FL
AUTO PARTS EXPORTSAUTO PARTS EXPORTS
2929
FOOD PROCESSING MACHINERY EXPORTS FOOD PROCESSING MACHINERY EXPORTS
Florida
Texas
States or Origin &States or Origin &% of ARC Exports:% of ARC Exports:•PA - 28%PA - 28%•GA- 20%GA- 20%•SC- 14%SC- 14%•OH- 12%OH- 12%
Key Ports for Export:Key Ports for Export:•Laredo TXLaredo TX•JFK Int. Airport NYJFK Int. Airport NY•New York NY .New York NY .•Detroit MIDetroit MI•Port Huron MIPort Huron MI
3030
PACKAGING MACHINERY EXPORTS PACKAGING MACHINERY EXPORTS
Florida
Texas
States or Origin &States or Origin &% of ARC Exports:% of ARC Exports:•SC - 65%SC - 65%•GA- 16%GA- 16%
Key Ports for Export:Key Ports for Export:•New York NY .New York NY .•Buffalo NYBuffalo NY•Laredo TXLaredo TX•JFK Airport NYJFK Airport NY•Miami Int. Airp’t FLMiami Int. Airp’t FL•Miami FLMiami FL•Champlain NYChamplain NY•Charleston SCCharleston SC
3131
ELECTRONIC COMPONENTS EXPORTS ELECTRONIC COMPONENTS EXPORTS
Florida
States or Origin &% of ARC Exports:•WV- 31%•PA- 20%•GA- 13% •MS- 11%
Key Ports for Export:•JFK Int. Airport NY•Miami Int’l Airp’t FL•Buffalo NY•Detroit MI•Port Huron MI
3232
Rail & Air Intermodal FacilitiesRail & Air Intermodal Facilities
TOFC / COFC Facilities
Airport Facilities
3333
Intermodal Facilities Supporting Intermodal Facilities Supporting Auto Parts ExportsAuto Parts Exports
State Value of Auto Parts Exports from
Appalachia in $M (Avg 1998-2002)
Locations of TOFC/COFC Facilities in Appalachia
Locations of Rail Intermodal Facilities
Operated by CSX or NS
Alabama $727 Birmingham (2), Huntsville
--
Georgia $201 -- Atlanta (3), Austell, Savannah (2)
Maryland $277 -- Baltimore (2)
Ohio $300 -- Cincinnati, Cleveland, Columbus, Toledo
Tennessee $800 Kingsport, Knoxville
Memphis (2), Nashville
West Virginia $550 -- --
3434
ADHS - Appalachian Development Highway System
3535
ADHS Gaps IdentifiedADHS Gaps IdentifiedCorridor State and Location of Gaps
A TN, GAA1 GAB NC
B1, C OHD WV, OHG WV, KYH WVJ KY, TN
M, N, O, U PAS TNK TN, NCR KY
3636
Challenges for Connecting to Challenges for Connecting to Ports of LadingPorts of Lading
• Ports of lading and firm locations are related
• Appalachia in the middle of an auto mfg. corridor stretching from Canada to Mexico
• Eastern Counties in Appalachia exports more to Europe – easier access to east coast ports
• Western portion of in Appalachia exports more within North America – better access to key industrial areas in US, Canada, Mexico
3737
Attracting “Inward Investment” Attracting “Inward Investment” Related to Transport ConnectionsRelated to Transport Connections
Recent Offshore-Based Auto Assembly in Southern US & Mexico
3838
……On the WebOn the WebVancouver Gateway Council
Major Commercial Transportation Systemwww.gvgc.org
Appalachian Regional CommissionTransportation Studies
www.arc.gov
Economic Development Research GroupLibrary of Economic Impact Studies
www.edrgroup.com