1. Economic & Transport Trends Affecting Maine’s Future Glen Weisbrod Economic Development Research Group, Inc. 2 Oliver Street, Boston, MA 02109 www.edrgroup.com Presentation to MaineDOT August 8, 2005

2. 2 Topics Integrating Transportation with the Economy 1.Maine Economy 2.Dependence on Links to Outside Areas 3.External Factors Providing Opportunity for Maine’s Future Economic Growth

3. 3 1. The Maine Economy …A foundation of core export sectors…

4. 4 Basic (Traded) Industries Leather Products Transport Equip Waste Mgmt Recreation Accommodations Insurance Fish Food Products Forestry & Logging Paper Mfg Wood Products Textile Mills Textile Products Maine Industries with Above-Average Concentration of Jobs (Inflow of $) Retail Trade Health Care Government Construction Largest Maine Industries

5. 5 Maine Exports Technology Products Air Cargo Growth Int. Trade Corridors ( Highest Value, ’02) Paper Electronics Lumber/Wood Fish Industrial Machinery Maine Exports (Highest Value, ’02) Canada Singapore & Malaysia Japan & Korea UK & Belgium China & Hong Kong Recipients What’s New

6. 6 Site of Export from NE US J.F.K. INTL AIRPORT, N.Y.$ 32.6 BUFFALO-NIAGARA FALLS, N.Y (LAND)$ 10.9 NEW YORK, NY - PORT $ 10.6 LOGAN INTL AIRPORT-BOSTON$ 4.6 LAREDO, TEXAS$ 3.4 CHAMPLAIN-ROUSES PT., NY (LAND)$ 3.0 NEWARK, NJ - PORT $ 2.7 NEWARK INTL AIRPORT$ 1.9 NEW ORLEANS INTL AIRPORT$ 1.8 DETROIT, MICHIGAN (LAND)$ 2.1 ALEXANDRIA BAY, NY (LAND)$ 2.1 BALTIMORE, MD - PORT $ 2.1 PHILADELPHIA INTL AIRPORT$ 1.9 HIGHGATE SPRINGS-ALBURG, VT (LAND)$ 1.6 ANCHORAGE INTL AIRPORT$ 1.2 NORFOLK, VA - PORT $ 1.2 LOS ANGELES/LONG BEACH - PORT $ 1.2 by Port of Exit, $ Billions of Value, 2002

7. 7 Maine Product Exports Maine Exports ($1.8b) via 1 Calais 2 JFK Airport 3 Jackman 4 Buffalo, NY 5 Derby, VT 6 Eastport 7 Logan Airport

8. 8 Expanding Markets Value of Mfg Freight Ton-Miles Population

9. 9 Maine – Modal Reliance Value $ Billions -- Freight To, From, Within Maine 19982020% Growth Air210400% Highway46132187% Rail410150% Water15400% Other4650% Domestic42118181% International1546207% State Total57164188%

10. 10 2. Dependence on Links to Outside Areas …Current Reliance on N-S Corridor…

11. 11 Truck Flows to/from Maine Truck Access to/from Maine’s Businesses depends critically on the I-95 Corridor through NYC

12. 12 Highway Congestion 1998 2020 But Maine’s Access Route via I-95 and NYC is moving towards Gridlock!

13. 13 Cross-Border Truck Flows Currently New England products have larger volumes crossing in Vermont and NY State. This becomes harder to sustain with increasingly congested Interstate highway Routes.

14. 14 3. External Factors Provide New Opportunity for Growth …Trade Corridors…

15. 15 Why a Corner of the Action?

16. 16 Why Left Out of US Planning? Federal High Priority Corridors

17. 17 An Alternative View Emerging Global Trade Network Integrated, Intermodal Logistics

18. 18 NE Can-Am Connection U.S. -- Maine to northern tier of New Hampshire, Vermont, and New York Canada provinces: Quebec, New Brunswick, Nova Scotia, Prince Edwards Island

19. 19 Common Economic Distress aging population high unemployment low population growth declining industries (paper, agriculture)

20. 20 Limited E-W Connections Six N-S Interstate Highways (I-95, I-93, I-91, I-89, I-87, I-81) No E-W Interstate north of I-90 E-W link in Canada has detour around Maine Poor Access to prod. centers in N. Midwest (Lake Huron to Maine Coast = 600 mi by air, 2000 mi by road)

21. 21 Potential for Trade Route Region is between 2 Powerful Economic centers: Boston - Washington corridor to the South and Chicago - Quebec corridor to the West Hwy and Rail Route: Potential to intersect with six North-South interstate corridors within 500 miles Two corridors account for 40% of GDP of US and CA Region needs access to US Midwest & Canada to grow

22. 22 Increasingly Global Economy New connections justified by changing trade routes (e.g., NAFTA) and emerging global economy (air and seaport connections) Old connections degrading due to congestion and over-concentration

23. 23 …On the Web Northeast CanAm Connections www.canamconnections.com Transportation& Economic Development Conference www.ted2006-littlerock.org March 28-30, 2006

24. 24 Contact Info Economic Development Research Group, Inc. 2 Oliver Street, 9 th Floor Boston, MA 02109 USA 617-338-6775 www.edrgroup.com Bibliography of Links to Reports on Transportation & Economic Development www.edrgroup.com/edr1/library