Connected Places: Freight, Regions and Megaregions Catherine L Connected Places: Freight, Regions and Megaregions Catherine L. Ross, Harry West Professor Deputy Director, National Center for Transportation Productivity and Management Georgia Institute of Technology October 24, 2014

Emerging Megaregions Connected Places

Megaregions Why Megaregions Matter NON-MEGAREGION Area 29.6% 70.4% Population (2008) 76.54% 23.46% Employment 76.98% 23.02% GRP (2008) 81.47% 18.53% Fortune 500 companies revenue (2008) 92.07% 7.93% Patents (2008) 86.77% 13.23% Megaregions-scale analysis captures relevant economic and demographic phenomena 10 megaregions account for 30% of national territory and 75% of the nation’s population and employment.

Megaregions Definition Metro regions are urban centers and their metropolitan sphere of influence which comprise the core of the megaregion. Metro Regions: measuring centrality Functional regions are groups of metro regions linked through economic interaction and geographic proximity. Functional Regions: measuring interactions Megaregions: considering physical relationships A megaregion is a functional region with an additional layer of shared social, cultural, and environmental characteristics.

National Gateways for Freight Movement Data Source: FAF3

National Gateways by Mode and Megaregions

Economic Competitiveness

Rapid Freight Growth over Next Three Decades Emerging Trends Rapidly Increasing Truck Volume Rapid Freight Growth over Next Three Decades

Emerging Trends Distribution Center Sprawl Distribution centers are de-concentrating at the city level and at the megaregion level. Fragmented governance results in widely divergent local policies towards distribution centers. Simultaneously, distribution centers are increasingly adding value to supply chain process (Rodrigue, 2006) Source: Dablanc and Ross, 2012. http://www.sciencedirect.com/science/article/pii/S0966692312001305

Emerging Trends Rail Network Facts on U.S. railroads 139,000 miles of track $68.9 billion of revenue annually Railroads offer capacity to accommodate future freight increases. 88% of railroads under capacity (2007) By 2035, 45% projected to be under capacity. Investment required to accommodate projected freight increases. Source: Federal Railroad Administration Sources: Ross et al., 2011. AAR, 2013.

Coordination with the Private Sector Incorporate private sector input to determine how megaregion planning could reduce costs. Strategic improvements in infrastructure are critical for efficient freight movement. Reliability and consistency are vital. There are both micro and macro level supply chains Different commodities travel differently. What are the critical corridors that drive the economy? All corridors are not created equal.

Catherine L. Ross, Ph.D. Center for Quality Growth and Regional Development Georgia Tech www.cqgrd.gatech.edu catherine.ross@coa.gatech.edu