1 Carrying Indiana’s Torch 2d Annual Transportation, Distribution and Logistics Summit 14 September 2004 Eric Dietz, PhD, PE

2 Vision Indiana as the home of an innovative, world-class TDL sector supported by creative public-private partnerships, innovative technology firms and enlightened, informed economic policies developed with the participation of all stakeholders

3 Challenges Connecting Transportation and Economic Development Identifying a Open Architecture for TDL and Security Develop Indiana Business Opportunities Roles of various modal carriers have expanded Built infrastructure and then develop economy

4 Strengths in Indiana Location and infrastructure –Major interstates, crossroads of America Extensive industrial base that is used to operating in demanding TDL environments –JIT logistics for the auto companies Strong universities Extensive network of regional campuses and community colleges

5 TDL Challenges Various threats Super-critical transportation nodes Multi-jurisdictions Economic power provides vulnerability Identify cargo vulnerabilities at each step then provide Appropriate Security

6 Optimization Workforce Management – Productivity key (worker value) not necessarily worker costs Balance Regional Transportation Capacities/Congestion Verify Contents when packing/then secure More than “Just in Time” Adjust Warehousing Strategies Total Process Innovation not just Transportation or warehousing Include Manufacturing Rely on Information Technology (sound process)

7 Realizations Transportation construction industry employs more than 48,000 Hoosiers Indiana ports(3), railroads(39), airports(69), and transit systems(53) As “The Crossroads of America,” Indiana roads carry more than $1 trillion in goods and exceeds 9.5 billion miles of commercial truck traffic annually Low costs and Indiana’s location TDL will be successful if used to improve profits and differentiate services Indiana offers huge opportunity costs in congestion fuel savings ($ B’s)

8 And So… Case for TDL as an important part of the Indiana economy appears pretty solid Potential for significant growth in the future Significant effects on other industries in the state as well as employment Many advantages in Indiana! –Even the competition says so!

9 Role of Higher Education Provide intellectual capital through federal and industrial research Work with stakeholders to support economic policy decisions Significant role in workforce development Continuing education of operators (new regulation) Emphasize soft skills in addition to basic training We are all in this together!!

10 Current Status TDL initiative located in Purdue’s Center for Advanced Manufacturing 21st century proposal submitted with significant industrial, academic support –Not successful Currently reworking concepts, seeking industrial and academic partners

11 Areas of action Comprehensive Indiana TDL business plan Economics –What is the effect of improvements in the TDL sector on the state economy? –What is the value of IT in making timely decisions? Workforce –What types of skills are needed by whom, how can they be supplied?

12 Areas of action Technology –What technologies could significantly enhance the ability of the TDL sector to contribute to the state economy? –Do these exist, or do we need to develop some of them? –If we develop, what mechanisms for bringing to market? –What performance factors indicate a success? –What new RFID technology is needed?

13 Areas of action Infrastructure in its broadest sense –Roads, ports, etc and expand bi-modal assets –IT infrastructure - high speed Internet, wireless, GPS, Refine information flow, etc. –Legal - inventory tax, real estate development statutes, leap frog legislation, time zone, etc. –Economic policies - e.g., 21st Century Fund, etc. –Security and Security Infrastructure –Market Indiana TDL Nationally and Internationally

14 Conclusions TDL is currently a significant portion of the economic activity in the state A strong, capable TDL sector is essential to economic growth Developments in IT will drastically change this industry Purdue, CICP and Discovery Park can help bring stakeholders together

15 How can you get involved? Make us aware of your interests, capabilities, and concerns – –REGISTER ON WEBSITE!!!!!!!!