1. 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 gweisbrod@edrgroup.com

2. 2 Economic Development Perspective Freight Focus on Access / Connections Invest to provide connectivity (linkages); Benefit is primarily in maximizing accessibility to resources & markets.

3. 3 Relevance 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)

4. 4 Case Studies Vancouver, BC Gateway: Impact Study and Actions. Appalachian International Trade Clusters: Needs and Opportunities.

5. 5 Greater Vancouver Gateway Council

6. 6 Elements 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

7. 7 Central or Peripheral?

8. 8 Global 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

9. 9 Western Transport Dependence Concentration of Jobs in Transportation, Rel to Canada Average Western Provinces

10. 10 Westward Flows to Asia Asia $11b Through Vancouver (Pacific Marine Gateway) Europe/Africa $3b

11. 11 Relative Growth in Container Traffic NorthCanada West Coast Vancouver America(US-Canada) Gateway Growth of TEUs

12. 12 Regional Growth Projections 2002 – 2021 Forecasts Population +42% Car Traffic +39% Truck Traffic +56% Rail tonnes +60% Cargo Shipments in BC, (millions of tonnes)

13. 13 Concern for Competitiveness

14. 14 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

15. 15 Objectives of the MCTS

16. 16 To Trans Can Hwy  To US Border

17. 17 Transport Capacity Issues (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

18. 18 Analysis 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.

19. 19 Direct Effects Ground 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

20. 20 Results: 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 /year Economic Stakes: Over 150,000 jobs in production industries produce over $30 billion of exports /year Total Benefit (incl. personal time) $806 million to $1.5 billion of benefit value /year

21. 21 Plans 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)

22. 22 Analysis of Global Competitiveness of Selected Industries and Clusters in the Appalachian Region Study Components: Industry Analysis Market Analysis Transportation Analysis

23. 23 Selection 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

24. 24 Selected Industries Electronic Components Food Processing Machinery Packaging Machinery Wooden household Furniture Upholstered Household Furniture Auto Parts

25. 25 Foreign Markets

26. 26 Transportation Mode by Commodity

27. 27 “Ports” 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

28. 28 Florida 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 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 EXPORTS

29. 29 FOOD PROCESSING MACHINERY EXPORTS Florida Texas States or Origin & % of ARC Exports: PA - 28%PA - 28% GA- 20%GA- 20% SC- 14%SC- 14% OH- 12%OH- 12% 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 States or Origin & % of ARC Exports: PA - 28%PA - 28% GA- 20%GA- 20% SC- 14%SC- 14% OH- 12%OH- 12% 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

30. 30 PACKAGING MACHINERY EXPORTS Florida Texas States or Origin & % of ARC Exports: SC - 65%SC - 65% GA- 16%GA- 16% 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 States or Origin & % of ARC Exports: SC - 65%SC - 65% GA- 16%GA- 16% 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

31. 31 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 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

32. 32 Rail & Air Intermodal Facilities TOFC / COFC Facilities Airport Facilities

33. 33 Intermodal Facilities Supporting Auto Parts Exports StateValue 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 --

34. 34 ADHS - Appalachian Development Highway System

35. 35 ADHS Gaps Identified CorridorState and Location of Gaps ATN, GA A1GA BNC B1, C OH DWV, OH GWV, KY HWV JKY, TN M, N, O, U PA STN KTN, NC RKY

36. 36 Challenges for Connecting to Ports 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

37. 37 Attracting “Inward Investment” Related to Transport Connections Recent Offshore-Based Auto Assembly in Southern US & Mexico

38. 38 …On the Web Vancouver Gateway Council Major Commercial Transportation System www.gvgc.org Appalachian Regional Commission Transportation Studies www.arc.gov Economic Development Research Group Library of Economic Impact Studies www.edrgroup.com