North Carolina logistics study Presentation to the: AASHTO Standing Committee on Rail Transportation September 13, 2011 George List, PhD, PE North Carolina State University

Overall Vision Infrastructure  Economic Development Historically, infrastructure was about Commerce, not personal transport So we are returning to our roots Coordinated Logistics Planning Transportation and Commerce State and local governments Statewide Logistics Planning and Decision-making Staging - game plan and play book Overall Vision Strategic infrastructure investment Master planning for land-use Engagement of businesses – new and old Public / private partnerships

A First Metaphor Factors of production and the economics of the firm 11/20/2018 A First Metaphor Factors of production and the economics of the firm

11/20/2018 A Second Metaphor How economies operate

In the Nation of This Century

And the World

2008: Statewide Logistics Plan Response to legislative mandate Created a blueprint for further refinement of logistics plans and planning Findings Improve collaboration between Commerce and Transportation Create a clearer and higher level interface between state government and private sector concerns in logistics Engage in short-, medium- and long-term actions Create a Logistics Board - small staff, report to governor, have an ability to get and spend $$$, speak for NC

Short to Long-Term Actions The State is already taking actions

Now: Governor’s Logistics Task Force 12/9/2009 – Executive Order 32 – created Task Force Sep 2010 to May 2011 – meetings around the state Jun 2011 to Dec 2011 – Task Force deliberations Sep 2011 - today Recommendations – Dec 2011

Activities and Organization Considering what to do next Tightly linked to the future of the state Subcommittees Governance, Best Practices, Regional Hub Design, Commerce Our role – examine strategies the state might pursue Understand state’s role as an actor See how to partner with the private sector (meet expectations) See how to relate infrastructure to economic sectors Discern region-specific ideas and mode-specific needs Develop integrative ideas (regions and modes) Work is still underway (target => December 2011) No conclusions, no recommendations, just ideas and observations

Shaping Ideas Economic sectors Logistics villages (physical and virtual) Local worldwide access One-stop shopping …. Logistics Authority Demand pull / Supply push / strategic investments Provide facilitating resources Internet, education, water, sewer, power, …… Make strategic investments

Rail Context Bridge state (especially north-south) Limited railroad presence Major truck lines, but Medium size classification yards and intermodal facilities (the new intermodal facility in Charlotte will change this) Two ports (Wilmington and Morehead City), both served by only one Class 1 railroad (CSX and NS respectively) North Carolina Railroad High-speed rail initiatives, right-of-way preservation, state ownership of rights-of-way Active ensemble of short line railroads

We See That ….. Rail is important to future economic prosperity Better and more affordable service would be helpful NC traffic is of limited interest to the Class 1 railroads The importance of short lines is likely to increase NCRR is a significant asset Connectivity is relatively good Some missing links and wye connections Capacity might be a challenge Single track main lines, local yards, tonnage ratings Port access is through built-up areas Synergy between passenger and freight should be possible

Rail-Related Ideas – You could…… Focus investments around a tiered view of the network. Arrange for more and better competitive rail service. Make more extensive use of the North Carolina Railroad (NCRR). Seek greater accessibility, higher capacity, better competitive rates, shorter lengths of haul, and more frequent service. Grow the ensemble of short lines. Have NCDOT play a greater role in rail network planning and service for both freight and passenger services. Work with the Class 1 railroads to find win-win solutions. Support both intrastate and interstate commerce and passenger travel.

The Tiered Network Idea

Eastern Part of the State

Western Part of the State

Concluding Thoughts Work in process Shaping the future destiny of the state Ascertaining the state’s best role to play Tying infrastructure investments to economic growth Ascertaining the role of rail Charting a course Finding partners Creating the right legislation, regulation, and governmental organizational structure

Thank you. Questions? Contact information: George F. List, Professor gflist@ncsu.edu, (919) 515-8038 Dept. of Civil, Construction, & Environmental Engineering North Carolina State University 208 Mann Hall/ 2501 Stinson Road Campus Mail 7908 Raleigh, NC 27695-7908