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Transcript of Brianmcmahonintermodal
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Global Partners LTD.
Reconfiguring logistics in North America
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City of Toledo An Intermodal History
“Transportation, by land and water, in the various modes now in use, and hereafter to be brought into use, is the intrumentalityby which, in connection with those already present, will determine the future of this great city.”
- Jesup W. Scott c. 1860, City of Toledo Founding Father
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Toledo -- Intermodalsince 1817
The very first building built within the City of Toledo was a warehouse, built by the owners of Port Lawrence, to house incoming goods from Great Lakes schooners to be loaded onto canal boat. The image is familiar to many as one of the buildings on the City of Toledo seal.
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19th Century “Intermodal”
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20th Century “Intermodal”
The Middlegrounds, site of present day Owens-Corning Headquarters. At left is the entrance to Miami-Erie Canal, which tied Toledo to New Orleans via the Ohio and Mississippi Rivers as early as 1863.
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Port Activity 1940’s
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34 Railroads that have served Toledo, rivaled only by Chicago (36)
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Paul Block’s Vision --Toledo at the 1939 World’s Fair
Paul Block’s vision for Toledo from the 1939 World’s Fair, to transform Toledo, “from a smoky Lake Erie town into an ultra modern Transportation Hub.”
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Close-up of Toledo Tomorrow showing interconectivity of Air, Rail, and Seaport
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Defining the Region and its Output
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Defining the Region
“…defined by a shared geography and natural resources, a dynamic political and economic history, and strong principles of social organization…”
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U.S. Mega Regions
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A Vital Contributor to the Nation’s Growth and Prosperity
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Salient Facts
• Significant and still growing population of 97 million people
• One of the largest industrial production centers in the world
• One of the largest consumer marketplaces in the world
• Headquarters of 300 Fortune 1,000 firms• Nation’s leader in global trade (30% of U.S.
merchandise exports)
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Assets on Which to Build
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I. Innovation and Infrastructure
• Research and Development• Research Institutions
From research and education…to entrepreneurial activity…to jobs
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Research and Development
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Research UniversitiesThe Great Lakes region is home to one of the largest concentrations of research universities in the world
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II. Leadership in Emerging Global Industries
With infrastructure and critical mass in key industry sectors
• Automotive• Energy and Alternative Energy• Bio-Science• Advanced Manufacturing• Infrastructure for Global Commerce and
Knowledge Exchange• Advanced Materials• Global Connectivity• Health Care
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Automotive• Background: For example, even as the auto industry undergoes dramatic restructuring that continues to shrink factory employment, the region is consolidating as a global auto design and research center. While some new foreign transplant facilities are choosing the deep south, Honda, Toyota, and other highly competitive firms are locating new facilities in Indiana and Ohio.
• Toyota Technical Center− Currently under construction in Saline,
Michigan− $187,000,000 R&D Facility− 1,100 jobs by 2010− 350,000 SF Engineering Design Facility− 180,000 SF Safety Test Center
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Automotive (Continued)
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Energy and Alternative Energy
• Coal based energy generation, clean-coal and pollution abatement technologies
• Region generates over 38% of the nations nuclear energy with advantages in hydrogen production.
• Hydrogen fuel cell technology• Grain-based and synthetic fuels, bio mass• Photovoltaic Technology (PV)• Wind Energy
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Energy and Alternative Energy (Continued)
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Bio-Science
• Biotechnology applied to agriculture including FARMaceuticals (genetically-engineered drugs and antibodies from livestock), biofuels, industrial processes, and “green chemicals”such as biodegradable plastics.
• Biotechnology applied to medical processes and products. Detroit/Ann Arbor, Chicago, and St. Louis are in the top biotech research centers in the country.
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Advanced Manufacturing
• Region has a critical mass of expertise in designing and making products the require significant technical know-how including robotics, electronics, sensing devices, graphic and computer design, and products which incorporate nanotechnology.
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Infrastructure for Global Commerce and Knowledge Exchange
• This region is the nation’s pioneer in inventing cyber infrastructure needed for global economic activity.− University of Minnesota developed the
supercomputer− University of Illinois, web browser Netscape− University of Michigan, built the backbone of the
internet− Indiana University, development of Internet2− Kent State University, Liquid Crystal Technology
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Advanced Materials
• Titanium− ADMA (Advanced Materials) a leading edge
manufacturer for Titanium for Aeronautical and Military Applications
• Polymers− The University of Akron’s polymer-science
and polymer-engineering program ranks 2nd in the nation by U.S. News & World Report magazine.
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Global Connectivity
• Great Lakes Region comprises the lion share of the nation’s fast growing global trade
• Trade is almost 30% of U.S. GDP• Canada’s $1.8 billion per day bi-national
trading is the largest bilateral economic relationship in the world
• Immigrant in-migration benefited by a large number of international airports
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Health CareThe Great Lakes region is home to some of the most outstanding healthcare providers in the nation providing a necessary and critical component to an aging America
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III. Northcoast Water
• The watershed of the Great Lakes includes one-fifth of the world’s fresh water and ten thousand nine hundred miles of coastline, along with rivers, forests, and scenic and recreational areas that rival any of America’s other coasts
• Significant quality of life contributor
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• The Great Lakes region provides a base and business opportunity in “clean”technologies: − Water pollution abatement technologies− Biotech − Aqua-culture− Water conservation − Pollution prevention technologies
III. Northcoast Water (Continued)
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The Case for Toledo, Ohio
in a Global Market
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Toledo, Ohio has a critical mass of existing infrastructure and is
strategically positioned to emerge as a dominant North
American Logistics Hub.
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Big WorldHundreds of Countries, billions of workers
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Economic Challenges Global Outsourcing
Manufacturers in developed countries continue to accelerate their search for
less expensive labor and more efficient suppliers in the global marketplace
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From a Global Perspective to a Regional Perspective
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Michigan & Ohio’s Economic Challenges
A future yet determined
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Michigan & Ohio’s Challenges• The region’s economy is disproportionately dependent on the
automotive and related industries
• Most automobile related components are labor intensive
• The U.S. automotive industry faces fierce global competition and cost/pricing pressure and MUST source those components from lower cost labor markets, i.e., Asia
• The efficient transport of those foreign sourced components to U.S. facilities is critical for Ford, Daimler Chrysler, GM and their suppliers
• The current PORT-TO-DOOR transportation routing from Asia to the Western Lake Erie region is inefficient at best
• Freight transportation congestion and bottlenecks in the U.S. pose a serious threat to our industrial base
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BYD Auto
A paradigm shift in American Transportation, Energy, and Environment.
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Global Transportation Background
Flow of Products
From: Port of Origin
To: Manufacturing & Warehouse Facilities
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Critical Element # 1: Shipping Containers
• International shipments (except for bulk goods) are delivered by shipping containers
• Shipping containers require significant maneuvering and staging areas with specialized material handling equipment
• Single source, port to door routing from manufacturer to distributor is often desired
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Critical Element # 2:Rail Transport
Why Rail Transportation is critical
• Trucking industry is challenged by:− New hours of service rules
− High cost of fuel
− Shortage of drivers and equipment
− Increased highway congestion
• Port throughput and efficiencies are enhanced by a transfer of product from boat to rail
Rail transport to industrial facilities requires an intermodal/rail ramp
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13. SHANG HAI12. YANTIAN
4. HONG KONG
1. ROTTERDAM
11. FELIXSTOWE
2. ANTWERP
3. BREMERHAVEN
5. SANTOS
15. RIO GRANDE10. BUENOS AIRES
7. LE HAVRE
9. VALENCIA
14. GENOA
6. LA SPEZIA
8. HAMBURG
Other Major Trading Ports
Top 15 Trading Ports
International Ports
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Maritime DistanceAsia to North America
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Port Example
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From these ports, containers are transferred to either
trucks or trains
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If by train to inland port, a rail ramp is required
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From the rail ramp a train-to-truck transfer occurs
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Containers are then transported to industrial facilities
• With a business park adjacent to the rail ramp, containers can be shuttled (via hostlers) directly from the train to the facility, avoiding over-the-road truck transport− Reduces highway truck traffic− Saves businesses additional
transportation costs
• For industrial locations in the region, but not adjacent, a short dray or even a longer cartage still provides operating economies of scale and savings to businesses
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Conclusions
• As supplier locations change around the world, identifying and securing the optimum location for receipt of those goods for manufacturing or distribution within the U.S. becomes paramount for long-term, cost-effective logistics.
• A strategically located inland port offering more efficient global connectivity, will bring a distinct, substantial, and NECESSARY competitive advantage to the region’s industrial base.
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Why The Toledo Area?
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Why The Toledo Area?
• Market Access
• Highway accessibility
• Rail connectivity
• Proximity to agricultural and other export commodities (back-haul)
• Availability of skilled labor
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Market Access
Michigan Inland Port
300-mile radius
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THIS REGION IS THE CENTER OF THE LARGEST CONCENTRATION OF
INDUSTRIAL BUSINESSES IN NORTH AMERICA!
• Within a three hundred mile radius of the Lake Erie West region, more than Four Billion square feet of industrial space is accessible.
• Over 30% of industrial space in the U.S. and 54% of industrial space in Canada is accessible within round-trip 1-day drive!
• Located near one of the nation’s busiest crossroads – I-75 and I-80
Market Access
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THIS REGION IS THE CENTER OF THE LARGEST CONCENTRATION OF
AUTOMOTIVE RELATED INDUSTRIES IN NORTH AMERICA!
Automotive Market AccessThis 300 mile radius contains:
• 37 of 64 assembly plants in the US and Canada
• 126 of the top 150 OEM supplier headquarters and over 60% of their facilities in the US and Canada
• The destination of more than half of all imported automotive parts
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Market Access300 Mile Demographics
2005 Population Estimate 49,415,140
Estimated Median Age 36.74
Estimated Average Age 37.46
Estimated Average Household Income $62,611
Estimated Per Capita Income $24,532
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Highway Accessibility
Orlando
San Francisco Toledo
Detroit
Chicago
Seattle
Los Angeles
Atlanta
New York
75
80
90 90
80
15
Miami
Trad
e Co
rrido
rTwo of the nation’s busiest highways intersect at Toledo, Ohio
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Rail Connectivity to the Michigan Inland Port
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Day 1Day 2Day 3
Day 4
Day 5Day 6
Day 7 Day 8Day 9
Day 10
Traditional West Coast Rail Connectivity From Port of Long Beach (Union Pacific)
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Day 1
Day 2
Day 3
Day 4
NEW INTERMODAL
RAMP
Proposed CN West Coast Routing and Transit Times of Unit Trains
Day 5
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Day 1
Day 2
Day 3Day 4 Day 6
NEW INTERMODAL
RAMP
Proposed CN West Coast Routing and Transit Times thru Chicago for “Blocked” Trains
Day 5
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Day 1
Day 2
Day 3
Day 4
NEW INTERMODAL
RAMP
Proposed CN East Coast Routing and Transit Times
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Proximity to agricultural and other export commodities
Lumber Coal
GrainGrain
Grain
Grain
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Availability of Skilled Labor
• Value added manufacturing• Automotive related manufacturing• Logistics services• Information Technology• Freight customs and international
freight processing• Trucking
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The Lake Erie West Global Logistics Hub
A regional multi-modal transportation vision
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The Lake Erie West Global Logistics Hub consists of:
• The Michigan Inland Port− Intermodal rail ramp with connectivity to the Ports of Vancouver,
Prince Rupert, and Halifax» Loading & unloading of shipping containers» Storage and transfer of containers
− Light industrial business park with direct access to the rail ramp» Value added manufacturing » Logistics» Distribution
• Toledo Express Airport & Business Park− 500-acre air-cargo and logistics park− 300-acre ground transportation and distribution park
» Expansion potential up to 700 total acres• Toledo Sea Port
− Potential short sea shipping connectivity to the Port of Montreal via the Great Lakes/St Lawrence Seaway
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Multi-Modal ConnectivityAccess to Major U.S. Markets Via I-75 & I-80
Air Freight
Rail Inte
rmodal Freight
Toledo Express Business Park
Michigan Inland Port
Chicago
Atlanta NYC
International freight moved by different
modes of transportationcan be consolidated at
either location within this regional logistics hub
Port of Toledo
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12
3
4
5
6
7
8
910
11
1. BAX Global
2. Grande Aire
3. UPS
4. FedEx Ground4a. FedEx Freight
5. Port of Toledo
6. Tower Group International
7. Livingston International
8. Roadway Express, Inc.
9. Trans-World Shipping Service, Inc.
10. Overnight Transportation
11. United Parcel Service
12. Yellow Transportation
13. Air Ride Inc.
14. International Projects, Inc.
15. International Trade Assistance Center
16. Regional Growth Partnership
17. US Department of Commerce
18. US Customs
19. Toledo World Industries
20. Cargill Inc.
21. Mid-States Terminals: ADM/Country Mark Cooperative Inc.
22. CSX Transportation Toledo Docks
1213
14 1516
1718
1920
21 22
Map of Logistics Service Providers in Greater Toledo
4444
4a
Customs Clearance & International GroupInternational GroupsTrucking & Material HandlersFreight ForwardersAir Freight and/or Sort Facility, Logistics Warehouse, Import Brokerage, Customs Clearance
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Toledo Express Business Park800-acre Transportation & Logistics Park
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Toledo Air Freight Accessibility• Toledo Express Airport
− Strategically positioned as a freight focused airport, Toledo offers attractive transportation advantages to freight forwarders through its BAX Global/Schenker International operated air freight sort hub
− An attractive air freight alternative to Chicago, Detroit, and Cleveland with many slots, low cost landing fees, lower fuel rates and rapid ground handling services
• BAX Global/Schenker International− North American air freight sort hub operation with carrier neutral
services− Ramp capacity for 75 aircraft − Ocean freight consolidations, import brokerage, and charter
services− Global supply chain services and international inventory
management
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BAX Global Toledo Hub
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BAX Global Fleet Network
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What does all this mean in terms of jobs?
The argument against intermodal is that it
provides only nominal, low paying jobs. Here are the
facts about Alliance, Texas:
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Source:http://www.alliancetexas.com/Research/AllianceTexasFacts/EconomicImpact/tabid/202/Default.aspx
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Toledo Airspace separate from Detroit Airspace
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Chicago Airspace
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Thank you