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Nonstop Services, Inc. Expansion Study

Nonstop Services, Inc. Expansion Study. GIS 200 Term Project NVCC. Contents. Summary Goal & Objectives Data Analysis Conclusion. Goal & Objectives. Goal The goal of this study is to determine the best area to profitably locate a second freight facility Objectives

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Nonstop Services, Inc. Expansion Study

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  1. Nonstop Services, Inc. Expansion Study GIS 200 Term Project NVCC

  2. Contents • Summary • Goal & Objectives • Data • Analysis • Conclusion

  3. Goal & Objectives • Goal • The goal of this study is to determine the best area to profitably locate a second freight facility • Objectives • Interview the owner of Nonstop to identify the expansion requirements • Collect supporting data to establish the criteria to use to determine the site of the new facility

  4. Data • Analyzed Nonstop’s database of dispatched trucks to determine what the volume of current interstate traffic is on the major corridors • Used Federal Aviation Administration (FAA) data on freight traffic by airport to narrow down potential cities • Collected data from the DOT and the United States Census Bureau Commodity Flow Survey

  5. Analysis-1 • Requirements/Assumptions • A major airport is required as approximately 50 percent of sales are generated by local P&D (pick-up and delivery) of freight • Drivers are limited by DOT to 11 hours of driving followed by 10 hours of rest • Offering an extended corridor within the 11 hours with a single driver who could deliver “hot” freight, Nonstop would realize greater sales and operational savings

  6. Analysis-2 • Map 1: Site Selection Delimited by Drive Radius • The main interstate corridors radiating out from the primary facility in Raleigh, NC and into the buffer • The buffer represents the greatest and least distance an average driver can cover in 11 hours • Cities shown are those with populations greater than 100,000 within the interstate corridors and in and beyond the buffer • Nonstop management believed that Ohio was a likely site, so Columbus was included because of its central location and home to a large LTL hub

  7. Map 1: Site Selection

  8. Analysis-3 • Map 2: Major Airports by Cargo Volume • Using graduated symbols and cargo tonnage, this map shows the airports in and beyond the buffer • Two airports that stand out are Indianapolis (IND) and Louisville (SDF) • A search for corporate freight hubs yielded FedEx regional at IND and UPS at SDF • The huge tonnage numbers do not represent actual local P&D • The vast majority of freight is sorted and reloaded onto another plane

  9. Map 2: Major Airports

  10. Analysis-4 • Map 3: Amount of Freight by Weight Originating from North Carolina • A choropleth map of states in and beyond the buffer displayed by the tonnage of freight terminating in the respective state that originated from North Carolina • The states and airports beyond the buffer are included to help indicate the amount of freight activity in the region that would be encompassed by the extended eleven-hour corridor • Note: The data are a summation of every location in North Carolina • A shipment from the western mountains of North Carolina going to Atlanta isn’t financially or logistically feasible from Raleigh • This data was obtained from the Bureau of Transportation Statistics (USDOT) and United States Census Bureau 2002 Commodity Flow Survey’s individual state data

  11. Map 3: Amount of Freight by Weight

  12. Map 4: Summation of Data

  13. Conclusion-1 • There are nine potential sites lying just inside the buffer and served by interstates • Eight within the buffer • One representative of Nonstop’s assumption about Ohio • There are strengths in the three areas • A strong concentration of freight moving into the Northeast • A heavy but broad area in the Midwest • A strong concentration in the Georgia and Alabama area with a large amount of freight going to the extended corridor destination of Texas

  14. Conclusion-2 • A review of Nonstop’s data indicates the volume of current traffic through these corridors • 27 percent on I-95 North • 20 percent on I-77 North before splitting in West Virginia (where 11 percent continue on to northern Ohio and 9 percent head west towards Chicago) • 22 percent head southwest on I-85 • This analysis indicates that southwest Atlanta, central or western Ohio, and the warehousing areas south of Newark Airport (Elizabeth, NJ) would fall within the criteria for selection of a secondary site • Traffic and toll considerations are a downside to the I-95 North corridor • The currently reduced level of manufacturing in the Midwest is a negative factor • The conclusion is that southwest Atlanta, with all its strong indicators and the potential amount of freight going to Texas in the extended corridor is the current best solution to site their second location

  15. Summary • Nonstop Services, Inc. (“Nonstop”) is a local market expedited freight company • The company is considering expansion to a secondary location that meets Nonstop and Department of Transportation (DOT) requirements • The results of the study depict areas with the highest economic potential, including: • Southwest Atlanta metro • The Interstate 270 area of south Columbus, Ohio • Elizabeth, New Jersey • The recommended solution is Atlanta: it has slightly greater long term potential due to strong levels of freight activity in the current and expanded corridor

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