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

1. 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

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

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

5. Greater Vancouver Gateway Council

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. Central or Peripheral?

8. W. Canada Exports Highest Value (’02) Minerals & Coal Wood Fertilizer Mechanical Equip Paper Fastest Growth (’92-’02) * Electrical Machinery * Plastics * Furniture * Instruments * Motor Vehicles Globalization… Global Change • Technology – intermodal, containerized • Trade Corridors – Pacific Rim growth • Consolidation – mega ports and gateways

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

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

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

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. Concern for Competitiveness

14. 30 Marine Terminals, 22 Rail Yards 6 Border Crossings, 1 Airport On Site: 75,000 jobs W. Canada: 145,000 jobs, $19B output Border Facilities

15. Objectives of the MCTS

16. To Trans Can Hwy  To US Border

17. 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 Transport Capacity Issues (2021)

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. Direct Effects Diff: Build vs. Not 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

20. Effects for City, Metro, Province and W. Canada Results: Economic Implications • 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. A New Crossing of the Fraser River and Regional Road Improvements Plans In Progress 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. Analysis of Global Competitiveness of Selected Industries and Clusters in the Appalachian Region • Study Components: • Industry Analysis • Market Analysis • Transportation Analysis

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

25. Foreign Markets

26. Transportation Mode by Commodity

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. AUTO PARTS EXPORTS • 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 Florida

29. FOOD PROCESSING MACHINERY EXPORTS • 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 Texas Florida

30. PACKAGING MACHINERY EXPORTS • 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 Texas Florida

31. ELECTRONIC COMPONENTS EXPORTS • 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 Florida

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

33. Intermodal Facilities Supporting Auto Parts Exports

34. ADHS - Appalachian Development Highway System

35. ADHS Gaps Identified

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

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