THE NEXUS OF ECONOMIC DEVELOPMENT & LOGISTICS

CHRISTOPHER STEELE COO & President, North America, Investment Consulting Associates

Thursday, February 9 | 9:00 AM – 10:00 AM

CHRIS HARTMAN CEO, Tsawwassen First Nation Economic Development Corp.

PAUL DERKSEN Associate VP Black Watch Property Ltd.

• Admitting what we do and do not know

• Learning about the process and drivers

• Finding the opportunities

Understanding The Economic Possibilities

Resulting from Freight

Global Management Advisory

Public officials do not have an adequate understanding of freight operations or business drivers

Companies have dropped communities w/out plan for transportation infrastructure, or policies did not adequately accommodate freight

75% of companies said they would recommend guidance in the form of inventories of industrial sites; tax incentives for freight distribution businesses; industrial rail access programs; and expedited permitting processes.

Understanding and addressing this disconnect was the driving force behind NCFRP Report 13

The Public and Private Sectors view the world through different lenses; neither sees the full picture

Public and Private Sector Perspectives

www.freightlocation.org <or> www.trb.org/Main/Blurbs/166143.aspx

Global Management Advisory

• Lack of regional cohesiveness

• Incomplete understanding of the role of freight facilities in the economy

• Incomplete understanding of the investment/location decision process and

drivers

• Misunderstanding of the community’s role in the global/regional/local

transportation network

Common Obstacles to Good Policy

Lack of coordination among planning, economic development, and transportation agencies

Lack of public/private coordination

All impair corporate competitiveness and regional economic opportunity

Global Management Advisory

Economic development contribution of freight facilities (to both freight and non-freight activities)

Land use conflicts and pressures with competing uses and size of facilities

Coordination among economic development and planning agencies at local, regional and state levels

Private sector typically drives site selection and participation is a requirement for success

Issues , Challenges and Opportunities

Public Sector MUST Understand Private Drivers in order to Develop Effective Plans

Global Management Advisory

Freight Logistics Facility Types

Facility Type Subtypes & Variants Functions Example

Port Inland Port Foreign Trade Zone Load Center

Modal Transfer – Goods or Equipment Entry, Exit, Customs Staging

Container port

Intermodal Terminal Modal Transfer – Equipment De/Consolidation Pickup & Delivery

Rail COFC/COFC yard

Bulk or Transload Terminal Auto Terminal Modal Transfer –Goods De/Consolidation Pickup & Delivery

Rail bulk transfer yard

Distribution Center Warehouse Cross-Dock

Staging & Storage Unitizing & Processing De/Consolidation

Retail or grocery distribution facilities

Integrated Logistics Center “Freight Village” Support Services Utility Provision Service & Economies

Industrial parks planned around transport terminals

Hub Terminal Classification Yard Intramodal Transfer Staging De/Consolidation

National air hubs

City Terminal Drop Yard Industrial Yard

Intramodal Transfer De/Consolidation Pickup & Delivery

Local truck terminal

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Locations fit in a network fulfilling a business process

Network optimizes business drivers to serve a market franchise

Location process is expression of network strategy

Origin(s) Destination(s) Freight

Facility X

Freight Facilities site selection is overwhelmingly made by the private sector

Facility Placement & Priorities

Global Management Advisory

The Location Process allows for progressive testing and narrowing of alternatives based on

business drivers

Final Negotiations

and Location Selection

Planning and Strategy

Cost Modeling

Field Validation

Preferred and Alternate Location(s)

Location Screening

Network Modeling

Defined Strategy and Evaluation Criteria

Universe of Location Candidates

Short-List of Location Candidates

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Location Process

Global Management Advisory

Site Selection Factors

by Facility Type

Factors vary

Importance changes

No one factor drives everything

Global Management Advisory

Key Lessons and Message for the Public Sector

Economic Development

• Different “key” factors are part of the decision making process for each

freight and logistics related industry sector

• Communities need to understand which facility types and functions match

their own community strengths and provide a competitive advantage

• Also need to determine where freight and logistics oriented prospects fit into

their business attraction program

• A freight “cluster” may be built around these facilities if carefully planned

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ICA North America

2345 Washington St, Unit 201

Newton Lower Falls, MA 02462

United States

+1 617 314 6527

chris@ic-associates.com

www.ic-associates.com

ICA EMEA

Barbara Strozzilaan 201

1083 HN Amsterdam

The Netherlands

+31 20 217 0116

douglas@ic-associates.com

www.ic-associates.com