Access to Opportunity in the Global Economy of the 21st Century 7/21/2008 Running Fast! Access to Opportunity in the Global Economy of the 21st Century

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

Beginnings

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

Emerging Global Supply Chain Inland Port Locations

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

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

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

“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

Network A Intermodal Corridors of Commerce & Inland Ports

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

Access to Global Opportunity Expands All Across Network A Moving Forward 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.

Network A Positioning to Engage, Compete, and Succeed Learning to Run Faster Than We’ve Ever Run Before