# Presentation: 367808

## Freight’s Role in Economic Development: Urban & Rural Cases

**Glen Weisbrod**
- Economic Development Research Group, Inc.
- 2 Oliver Street, 9th Floor
- Boston, MA   02109 USA
***gweisbrod@edrgroup.com***

## Economic Development Perspective

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

## 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)

## Case Studies	

- Vancouver, BC Gateway:
- 		*Impact Study and Actions.*
- Appalachian International Trade Clusters:
- 		*Needs and Opportunities.*

## Greater Vancouver Gateway Council

## 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*

## Central or Peripheral?

## Global Change

- Technology – intermodal, containerized
- Trade Corridors – Pacific Rim growth
- Consolidation – mega ports and gateways

- Globalization...

## Western Transport Dependence

*Concentration of Jobs in Transportation, Rel to Canada Average*

## Westward Flows to Asia

**Asia $11b**
***Through Vancouver***
***(Pacific Marine Gateway)***

**Europe/Africa $3b**

## Relative Growth in Container Traffic

**	****  ****North****	****Canada****	**** West Coast****	**** Vancouver**
**    ****	****America****	****	****(US-Canada)****	****   Gateway**

**Growth of TEUs**

## Regional Growth Projections

- _2002 – 2021 Forecasts_
- Population    +42%
- Car Traffic    +39%
- Truck Traffic +56%
- Rail tonnes   +60%

**Cargo Shipments in BC, (millions of tonnes)**

## Concern for Competitiveness

## Border Facilities

***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**

## Objectives of the MCTS

## To Trans 

***To Trans ***
***Can Hwy *********

***To US ***
***Border***

## 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

## 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.

## 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*_

## 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

## 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)

## Analysis of Global Competitiveness of Selected Industries and Clusters in the Appalachian Region

-     Study Components:
-  Industry Analysis
-  Market Analysis
-  Transportation Analysis

## 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

## Selected Industries

- Electronic Components
- Food Processing Machinery
- Packaging Machinery
- Wooden household Furniture
- Upholstered Household Furniture
- Auto Parts

## Foreign Markets

## Transportation Mode by Commodity

## “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

## AUTO PARTS EXPORTS 

- 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

_**AUTO PARTS EXPORTS**__** **_

**Notes:**
Combined, Ohio, Maryland and Georgia account for more than 21% of ARC’s auto parts industry (in addition to what is shown on the slide).
Lines depict “state of origin” within ARC, but not specific county.  Export percents reflect origins within the ARC region.
Sources: MISER, US Dept. of Commerce

## FOOD PROCESSING MACHINERY  EXPORTS 

_**FOOD PROCESSING MACHINERY  EXPORTS **_

- Florida

- Texas

- States or Origin &
- % of ARC Exports:
- PA - 28%
- GA- 20%
- SC-  14%
- OH- 12%
- Key Ports for Export:
- Laredo TX
- JFK Int. Airport NY
- New York NY .
- Detroit MI
- Port Huron MI

## PACKAGING MACHINERY EXPORTS 

_**PACKAGING MACHINERY EXPORTS **_

- Florida

- Texas

- States or Origin &
- % of ARC Exports:
- SC - 65%
- GA- 16%
- Key Ports for Export:
- New York NY .
- Buffalo NY
- Laredo TX
- JFK Airport NY
- Miami Int. Airp’t FL
- Miami FL
- Champlain NY
- Charleston SC

## ELECTRONIC COMPONENTS EXPORTS 

_**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

## Rail & Air Intermodal Facilities

**TOFC / COFC Facilities**

**Airport Facilities**

## Intermodal Facilities Supporting Auto Parts Exports

| State | Value 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  | -- | -- |

## ADHS - Appalachian Development Highway System

- _ADHS - Appalachian Development Highway System_

## ADHS Gaps Identified

| Corridor | State and Location of Gaps |
| --- | --- |
| A | TN, GA |
| A1 | GA |
| B | NC |
| B1, C | OH |
| D | WV, OH |
| G | WV, KY |
| H | WV |
| J | KY, TN |
| M, N, O, U | PA |
| S | TN |
| K | TN, NC |
| R | KY |

## 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

## Attracting “Inward Investment” Related to Transport Connections

- Recent Offshore-Based Auto Assembly in Southern US & Mexico

## ...On the Web

- Vancouver Gateway Council
- Major Commercial Transportation System
- _[www.gvgc.org](http://www.gvgc.org/)_
- Appalachian Regional Commission
- Transportation Studies
- _[www.arc.gov](http://www.arc.gov/)_
- Economic Development Research Group
- Library of Economic Impact Studies
- _[www.edrgroup.com](http://www.edrgroup.com/)_