Toward New Horizons : Moving the Northern Great Plains Region to a Stronger Economic Future

1. www.ngplains.org Toward New Horizons: Moving the Northern Great Plains Region to a Stronger Economic Future Presentation to the Canada-U.S. Transportation Border Working Group Meeting in Vancouver, BC Presented by: Jerry Nagel Northern Great Plains Inc. Crookston, MN

2. Northern Great Plains Inc. NGP Inc. serves the states of Iowa, Minnesota, Nebraska, North Dakota, and South Dakota and the provinces of Manitoba and Saskatchewan. Northern Great Plains Inc. works to develop and implement regional solutions to issues, concerns and opportunities that can best be addressed through regionally focused action. www.ngplains.org

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5. www.ngplains.org Current Major Activity Focus • Agriculture and Natural Resources • Information Technologies • Economic and Policy Analysis in Support of Regional Growth and Vitality • Leadership Development Through Learning and Discussion

6. Innovation and Change Process Institute for Agriculture and Trade Policy Northern Great Plains Inc. RUPRI, ILSR, World Future Society • Northern Great Plains Inc. • Native Species • eCommunities • FarmConnect Private Industry www.ngplains.org

7. www.ngplains.org Transportation, Trade and Economic Development: Maximizing Future Opportunities in the Northern Great Plains 1999 – Sign a Memorandum of Understanding among the five states of Iowa, Minnesota, Nebraska, North Dakota and South Dakota and the provinces of Manitoba and Saskatchewan to work together on the project. Northern Great Plains Inc. and the Northeast Midwest Institute began work as project staff.

8. www.ngplains.org Transportation, Trade and Economic Development: Maximizing Future Opportunities in the Northern Great Plains Funding provided by: • US DOT Federal Highway Administration • Minnesota Department of Transportation • Manitoba Transportation and Government Services • Manitoba Industry, Trade and Mines • Western Economic Diversification – Canada

9. www.ngplains.org Advisory Committee Iowa • Dick Vegors, Department of Economic Development • Don Ward, Department of Transportation Manitoba • Bob Dilay, Industry, Trade and Mines • Don Norquay, Transportation and Government Services Minnesota • Bill Gardner, Department of Transportation • Barb Mattson, Dept. of Trade and Economic Development Nebraska • Susan Rouch, Department of Economic Development • Ken Sieckmeyer, Department of Roads North Dakota • Jack Olson, Department of Transportation • Randy Schwartz, Department of Economic Development & Finance Saskatchewan • Dave Jackson, Highways and Transportation South Dakota • Jerry Ortbahn, Department of Transportation

10. www.ngplains.org Linking Transportation, Trade and Economic Development to Maximize Future Opportunities in the Northern Great Plains Region Publications • An Overview of Transportation Infrastructure and Services in the Northern Great Plains • Trade Patterns and the Economy of the Northern Great Plains: A Baseline Report • Toward New Horizons: Trends in Transportation and Trade – Moving the Northern Great Plains Region to a Strong Economic Future

11. www.ngplains.org Figure 1.8 – Relative Contribution of Economics Sectors Across the Canadian NGP, 1997 (percentage)

12. www.ngplains.org Figure 1.3 – Relative Contribution of Economic Sectors Across the U.S. NGP Region, 1997 (percentage of Gross State Product)

13. www.ngplains.org Figure 2.30 – Canadian NGP Global Export Markets, 1999 (percentage of value)

14. www.ngplains.org Figure 2.18 – U.S. NGP Global Export Markets, 1999 (percentage of value)

15. www.ngplains.org Figure 2.26 – North Dakota’s Global Export Markets, 1999 (percentage of value)

16. www.ngplains.org Figure 2.32 – Manitoba’s Global Export Markets, 1999 (percentage of value)

17. www.ngplains.org Figure 2.7 – Total Freight Flow Associated with the Northern Great Plains Region, 1992 & 1997 (millions of tons)

18. www.ngplains.org Figure 2.10 – Total Freight Flow Associated with Northern Great Plains, 1992 & 1997 (in billions of 1992 dollars)

19. www.ngplains.org Figure 2.14 – Total Outbound Interregional Commodity Flows from the Northern Great Plains Region, 1997 (percent change tons/value from 1992 millions of tons/millions of 1992 dollars)

20. www.ngplains.org Figure 2.16 – Total Inbound Interregional Commodity Flows to the Northern Great Plains Region, 1997 (percent change tons/value from 1992 millions of tons/millions of 1992 dollars)

21. www.ngplains.org US/Canada Truck Traffic on US Highway Network, 2020 (tons) Federal Highway Administration Office of Freight Management and Operations

22. www.ngplains.org US/Mexico Truck Traffic on US Highway Network, 2020 (tons) Federal Highway Administration Office of Freight Management and Operations

23. www.ngplains.org Selected Key Trends Transportation • State and provincial departments of transportation will continue to experience an evolving role, transitioning from a project-focused, engineering and building mission to a systems-focused, management, operations, and performance monitoring mission. • Freight traffic growth is expected to be steady and significant, posing considerable challenges for the transportation system and conventional planning approaches. • Trade within North America has grown rapidly since the enactment of NAFTA and further growth is expected. • Communication and information technology will continue to be incorporated into transportation equipment and systems, and the use of intelligent transportation systems will grow.

24. www.ngplains.org Selected Key Trends Agriculture • Producers will be more closely tied to processors’ needs for specific identity-preserved varieties. • Consumer oriented exported food products will continue to increase in dollar value compared to exported bulk commodities; these two very different forms of agriculture will continue to exist side by side. • There will be a growing demand for traceability in food production and processing because of concerns about food quality and safety. Containerized shipping will be an increasing share of the market. • New non-food products made from agricultural crops—fibers, building materials, chemicals, fuel, energy, and health products—will be a significant outlet for regional agriculture.

25. www.ngplains.org Selected Key Trends Manufacturing • Regional and local manufacturing industry clustering will continue. • Manufacturers are examining their value chain to identify and maximize their companies’ advantages and core competencies. • Manufacturing is evolving from a single-focused mechanistic model into a system model characterized by self-improving networks and feedback loops.

26. www.ngplains.org Selected Key Trends Energy and the Environment • New approaches and innovations are emerging to meet today’s transportation, energy and environmental challenges. These trends present significant short- and long-term opportunities for the Region. • Resource productivity and dematerialization will grow and transform economic and transportation systems. • The introduction of environmental and health threats through increased global trade and travel will pose significant challenges to policy makers at all levels. • Responding to climate change—both minimizing its causes and adapting to its effects—will become increasingly important in policy deliberations and economic planning.

27. www.ngplains.org Recommendations for Strategic Action Institutional Activities • Continue and expand the collaboration between state and provincial transportation officials by forming a permanent Regional Transportation Working Group. • Establish a Northern Great Plains Regional Freight Advisory Committee (NGPFAC). • A Regional Working Group on Agricultural Development and Transportation Should Be Established. • Improve the coordination among transportation and economic development agencies at all levels.

28. www.ngplains.org Recommendations for Strategic Action Policy • Support a revised U.S. policy framework for freight rail transportation. • Assess best practices in streamlining environmental reviews of transportation projects. • Cooperatively monitor U.S.-Canada border management policies and support a policy framework that facilitates commerce and tourism while maintaining appropriate security.

29. www.ngplains.org Recommendations for Strategic Action Investments • Establish an online knowledge base of North American best practices in innovative project financing. • The states and provinces would benefit from additional federal sources of multi-modal funding to encourage projects that facilitate transportation improvements across modes. • Create economic incentives and programs that support renewable energy and biobased industries. • Create markets within the region for renewable energy and biobased industries as a means to develop domestic and international trade.

30. www.ngplains.org Recommendations for Strategic Action Events • A biennial Northern Great Plains Exposition should be held to highlight and market regional innovations in transportation, agriculture, manufacturing, information technology and energy. • A workshop should be developed on the evolving roles of state and provincial transportation agencies in the 21st century.

31. www.ngplains.org Northern Great Plains Regional Authority Authorized by the US Congress to: • improve basic public infrastructure in distressed counties and isolated areas of distress in the Region; • fund transportation and telecommunication infrastructure for the purpose of facilitating economic development in the Region; • support business development, with emphasis on entrepreneurship in the Region; and • provide job training or employment-related education, with emphasis on use of existing public educational institutions located in the Region.

32. www.ngplains.org NGP Board of Directors Iowa • Beth Danowsky, Rick Morain, Mary Holz-Clause Manitoba • Greg Dandewich, Roger Barnabé, Ken Goldstein Minnesota • Don Bottemiller, Ron Vantine, Marcie McLaughlin Nebraska • Maxine Moul, Sam Cordes, JoAnn Mueller North Dakota • Rod Holth, Bill Davis, Judd Graham South Dakota • Jim Mirehouse, Christine Hamilton, Dan Noteboom

33. www.ngplains.org Additional Information Northern Great Plains Inc. Valley Technology Park University of Minnesota Crookston, MN 56716 By phone at – 1-218-281-8459 By fax at - 1-218-281-8457 On the Web – www.ngplains.org Email – Jerry Nagel at: jnagel@ngplains.org