1. Global Strategies for Success Prepared by The Tioga Group for Orangeburg County Economic Development Summit November 12, 2008

2. Global Strategies 2 Table of Contents Current Trends in Transportation, Distribution & Logistics Global Perspective National Perspective Regional Perspective

3. Global Strategies Global Perspective: East Asia (China) is producing what the world wants to buy Corollary: This is part of a “Mega- Trend” - Globalization

4. Global Strategies Globalization Joseph Stiglitz, an economist and winner of the Nobel Prize defines Globalization as follows: Globalization "is the closer integration of the countries and peoples of the world...brought about by the enormous reduction of costs of transportation and communication, and the breaking down of artificial barriers to the flows of goods, services, capital, knowledge, and people across borders." (from Globalization and its Discontents) 4

5. Global Strategies 5 Freight Transportation and Communication Low Cost Freight benefits: Competition among producers/sellers Geographic specialization Large-Scale production Land values Communication Example-ND Pulse Crops

6. Global Strategies Top 20 = 77% of Current Economic Activity 6

7. Global Strategies Emerging Economies 7

8. Global Strategies The Emerging East Asian Economies Trade 8 Source: AAPA

9. Global Strategies Top 20 World Port Locations 9 Source: AAPA

10. Global Strategies National Perspective: The U.S. involvement in the Global Economy is growing much faster than the rest of economy Corollary: Development of new land side transportation and distribution facilities is needed

11. Global Strategies U.S. Quarterly Imports & Exports ($ Billions)

12. Global Strategies U.S. Quarterly Imports, Exports, & GDP

13. Global Strategies 13 Source: AAPA North American Port Comparison 2007

14. Global Strategies 14 U. S. Surface Price and Service Options Price Service (Speed/Reliability/Flexibility) High Low High Low Conceptual Pipeline Barge/Coastal Truckload Rail Carload LTL Small Package - Surface/Air Intermodal

15. Global Strategies 15 U.S. Freight Transportation Market Share

16. Global Strategies 16 U.S. Freight Transportation Market Share

17. Global Strategies 17 Logistics Costs in America Low: 8.6% 2003 Now: 10.1% 2007

18. Global Strategies TransPac and Land Bridge 18

19. Global Strategies East Coast Panama Routing 19

20. Global Strategies East Coast Suez Routing 20

21. Global Strategies Asian Production Changes Impact US 21

22. Global Strategies East Coast/West Coast Break Even Zone 22

23. Global Strategies East Coast Routings are Gaining Share Current Share2008 YTD2007 YTD West Coast 50.35% 51.59% East Cost 42.51% 41.32% Gulf Coast 7.13% 7.09% Comparison with 8 Months Last Year West Coast- 0.87% East Cost+ 4.50% Gulf Coast+ 2.23% Source: August U.S. Port Rankings-Journal of Commerce as provided by GA Port Authority

24. Global Strategies Regional Perspective: A growing southeastern economy will demand increasing international trade Corollary: Efficiency and economic security require the region to produce and export

25. Global Strategies 25 Immediate Service Region

26. Global Strategies Three Pronged Opportunity Distribution Jobs in warehousing and transportation for goods moving through the supply chain Manufacturing Long term economic security for an economic region is producing something the world wants to buy The need to balance inbound containers provides a competitive advantage for regional manufacturers Environmental Provide port functions More through put-less waterside foot print 26

27. Global Strategies Questions