Running Fast! Access to Opportunity in the Global Economy of the 21st Century

1. Running Fast! Access to Opportunity in the Global Economy of the 21st Century

2. Get Ready to Run Every morning in Africa, a gazelle wakes up. It knows it must run faster than the lion or it will be killed. Every morning in Africa, a lion wakes up. It knows that it must outrun the gazelle or it will starve. It doesn’t matter if you’re a gazelle or a lion. When the sun comes up, you’d better start running! Thomas L. Friedman

3. Beginnings

4. New Physical and Economic Links Appalachian Development Highway System • 3090 Mile System—13 states • 31 Individual Corridors • 90% Complete

5. Emerging Global Supply Chain Inland Port Locations

6. Launching “Network A” Net “A” Study Group • Transportation • International Trade • Economic Development FHWA Funding Secured Consultant Selected Design Research & Planning Activities

7. Macro-Economic and Demographic Transitions Economic Trends • Global Real GDP (past 6 decades): + 8 fold, + 3.8% annually • Global Trade Volume : + 64 fold, +7.6% annually (Manufactured Goods) US Economy (International): 1950-3%, 2000-25%, 2050-50% Demographic Trends • Population is shifting from North/Inland to South/Coastal • Population is aging • 2000 – 1 in 5 Americans are retirement age • 2030 – 1 in 3 Americans are retirement age • Demographics shifts affect demand/consumption patterns: • Demand/consumption shifts from manufacturing to service sector • Labor force shifts from manufacturing toward service sector U.S. Manufacturing Grows & Shifts • Lower value/profit commodities seek low cost off-shore labor • Higher value/profit commodities sustain a domestic presence

8. Intermodal Global Supply Chain Global Commodity Flows Increase & Diversify Domestic Flows (2000-2020): + 66% International Flows (2000-2020): + 100% Latin/South America Flows (2000-2020): + 150% Average Distance/Shipment: • 1993 – 420 miles • 2003 – 590 miles (+ 40%) Intermodal: 21st Century Mode of Choice World container ports: 1970 - 75 ports, 2005 – 550 ports Volume of container throughput, US gateway ports: 1970 – 1 million 2000 – 20 million 2020 – 50 million 2050 – 100 million Global Trade Lanes Emerge East – West: US-North Asia, US-Europe/South Asia North – South: US- Latin/South America

9. “Network A” Findings Over past 6 decades, GDP +8 fold, trade +64 fold Long-term economic expansion is underlying driver, plus: Containerized intermodal supply chain Telecommunication/information technology Demographic shifts Market expansion & new trade agreements While annual trends vary, global economy is fully established East-West trade lanes remain strong, North-South will grow Global supply chain is intermodal by nature, ports are gateways Access to supply chain is essential for competitiveness Enhanced intermodal coordination improves capacity, cost-efficiency, and reliability

10. Network AIntermodal Corridors of Commerce & Inland Ports

11. Planning & Development Framework Advocacy Region must advocate for its own future through building innovative & collaborative new partnerships. Planning Encourage & support expanded planning & development Multi-modal Highway, Rail, & Maritime Multi-disciplinary Transport, Econ. Dev., & Global Trade Multi-jurisdictional Local, State, National, & Global Multi-sector Public/Private Coordination Investment Build on momentum of new public/private investment models

12. MovingForward Access to Global Opportunity Expands All Across Network A Enlarged Panama Canal now open for business. Major investments to enlarge East Coast/Gulf Coast Ports and dramatically larger container vessels now call at such gateway ports. $4 Billion in new Net A High Speed/High Capacity Intermodal Rail Corridors connecting inland regions to key coastal ports: Norfolk Southern Heartland Corridor CSX National Gateway Corridor Norfolk Southern Crescent Corridor 14 new intermodal inland container ports.

13. Network APositioning to Engage, Compete, and SucceedLearning to Run Faster Than We’ve Ever Run Before