# Presentation: 657485

## Regional Strategy for Location 

**of **
**Distribution Facilities**
**in**
**NORTHERN NEW JERSEY**

**Talking Freight Workshop Presentation**
**May 19, 2004**

## OBJECTIVE

**NJTPA REGION AS A GATEWAY TO THE GLOBAL MARKET **

**OBJECTIVE**

**Thus enhancing the**

## The movement of freight generates a demand for advanced distribution facilities capable of performing value-added services. This is a growth market linked to the future expansion of foreign trade through the PONYNJ.

**The movement of freight generates a demand for advanced distribution facilities capable of performing value-added services. This is a growth market linked to the future expansion of foreign trade through the PONYNJ.**

**A MAJOR ENGINE OF REGIONAL     ECONOMIC DEVELOPMENT**

- The NY/NJ/CT Tri-state Metropolitan Region is the largest Consumer Market on Earth.

## OR

**MEGAMALLS**

**Mastodon : Extinct animal**

**Distribution Center = Key Land Use to**
**the New Economy**

**OR**

**NORTHERN N.J.’s HOTTEST FUTURE**
**REAL ESTATE MARKET**

## Growth Forecast for Port Of Port Of New York and New Jersey

_**TRENDS**_**: a) 2000 to 2001 cargo volumes increased by 8.7% to 3.32 million TEUs**
**	****b) First 9 months of 2002 increased by 8.5% over previous year**
**	****c) In last two years cargo volumes have increased greater than forecasted**

## DIVERSION OF WEST COAST ASIA TRADE

**TO EAST COAST PORTS**

**Shift 2.5 million TEUs:  from West-Coast Ports to PONYNJ by 2020**

*Channel deepening/large container vessels/capacity constraints for transcontinental rail landbridge will cause shift in shipping patterns*

## Geographic Distribution of 1998/99 

**Containerized Trade within 17 State Market Area**

***Source : ***Moffatt and Nichol  Engineers, Based on adjusted PIERS data

## NJTPA REGION LOCATION MAP 

**WITH HIGHWAY AND RAIL NETWORK**

**Legend**
**    ****US Route**
**    ****NJ Interstate**
**    ****Railroads**
**    ****NJTPA Region**

## ROUND TRIP TRUCKING COST (1) FROM EPAMT

**Mileage**** Cost Ranges**
**	****$10**** (2)**** to $30**
**	****$30 to $60**
**	****$60 to $90**
**	****$90 to $120**
**	****$120 to $193**

**ROUND TRIP TRUCKING COST**** (1) ****FROM EPAMT**
**(LOADED 1st LEG, 85% EMPTY 2nd LEG)--1999**

_**Notes**_
**1.****	****Truck operational costs ($1.31/mile loaded) were calculated by amortizing Vehicle Depreciation; Insurance; Fuel Costs; Driver Wages; and Overhead and Profit on a per mile basis**
**2. ****	****Minimum cost for trip, even if less than 1 mile**

## EAST COAST WAREHOUSE TRENDS

**TRADITIONAL STORAGE WAREHOUSE SYSTEM**

**Container**
**Terminal**

**Container**
**Trucking**

**Public**
**Warehouse**

**Regional**
**Trucking**

**Regional**
**Warehouse**

**Trade-off between economies of size versus land price**
**Definitive trend to relocate beyond 100 mile radius**
**Little demand with 75 mile radius**

## WEST COAST WAREHOUSE TRENDS

**CONSUMER DISTRIBUTION SYSTEM**

## WATSON INDUSTRIAL CENTER P.V.A

**WATSON INDUSTRIAL CENTER P.V.A**

## DISTRIBUTION CENTER ACTIVITIES

**Basic Services**
**Storage**
**Transloading**
**Customs**
**Foreign Trade Zone**
**Freight Forwarding**
**Trucking**
**Value-Added Services**
**Logistics**
**Barcoding**
**Sorting/Labeling**
**Marketing Materials**
**Scanning**
**Repacking/Pick & Pack**
**Kitting**
**Packaging Design & Manufacture**
**Manipulation**
**Repair**
**Internet Fulfillment**
**Special “Piece” Manipulation**

**X**
**X****X****X****X****X**

**X****X****X****X****X****X**
**X****X****X****X****X**

**X**
**X**
**X****X****X****X****X****X****X****X****X****X**

**X**
**X**
**X**
**X**
**X**
**X****X****X****X****X****X****X****X****X****X****X****X**

**Old Style Dist.**

**Traditional**
**Warehouse**

**Just-in-Time**
**Distribution**
**Center**

**Retail **
**Distribution**
**Center**

**Consumer **
**Distribution**
**Center**

**Evolution to More Complex Process.**

## NJTPA - “STRING OF PEARLS”

## Size : 50 to 150 acres... Phased Development

**Planned Unit Development (PUD)**
**Employees : 500 to 3,200**
**Foreign Trade to Domestic Ratio : 60/40 or****100,000-250,000 TEUs/yr.**
**Activities :**
**Transloading**
**Distribution Center**
**Drop-Shipping**
**B2B and B2C**

**THE NEED: REGIONAL VALUE-ADDED **
**DISTRIBUTION CENTERS NEAR PORT AND MARKETS **

- STRATEGY: LOWER VMT/AID PORT

## DEMAND FORECAST FOR DISTRIBUTIONCENTERS IN NJTPA REGION 2000-2040 

## Slide 17

## Capable of being linked to the port’s maritime container terminals by weight-unrestricted, preferably on dedicated freight-ways;

**CENTER LOCATION CRITERIA**

**Capable of being linked to the port’s maritime container terminals by weight-unrestricted, preferably on dedicated freight-ways;**
**Direct access to network of interstate highways;**
**Situated within Foreign Trade Zone (disjointed FTZ);**
**Location makes possible rapid unloading of containers and immediate return to container yard;**

## Convenient for use by B2B & B2C package freight distribution to NJ, NY, PA, CT conurbation;

**CENTER LOCATION CRITERIA, continued**

**Convenient for use by B2B & B2C package freight distribution to NJ, NY, PA, CT conurbation;**
**Accessible to inbound domestic production inputs( e.g. Rail and Truck);**
**Accessible to a two-tiered labor pool; and ability to develop Planned Unit Developments (PUDs)**

## The State of New Jersey working with the Port Authority and local govts. should prepare immediately to “land bank” (450 acres) of recommended sites for development of distribution centers, adjoining container yards, and linked dedicated freight-ways. 

**The State of New Jersey working with the Port Authority and local govts. should prepare immediately to “land bank” (450 acres) of recommended sites for development of distribution centers, adjoining container yards, and linked dedicated freight-ways. **
**This integrated economic development program should be seen as a single, revenue producing project like the “Alameda Corridor”, and should seek and receive federal funding assistance for upgraded infrastructure and improved connections to regional transportation grid.**