1. Southeast Michigan Council of Governments

2. Freight & Economic Analysis Study Talking Freight November 14, 2012

3. Working Partnerships Detroit Regional ChamberDetroit Regional Chamber State of MichiganState of Michigan –MEDC, MDOT, and MARD Local GovernmentsLocal Governments UniversitiesUniversities FoundationsFoundations

5. What We Thought We Knew The regional freight system isThe regional freight system is –Extensive and mature –Built to serve the auto industry »Move large volumes of heavy goods –Mostly in service to local industry and population –An essential gateway to Canada

6. What We Wanted to Know More About How well is the system serving freight businesses?How well is the system serving freight businesses? Is the freight system a barrier or an asset to economic growth?Is the freight system a barrier or an asset to economic growth? How can we realize the greatest return on investments to the freight system?How can we realize the greatest return on investments to the freight system?

7. Adapting to Change Study designed for ongoing internal updateStudy designed for ongoing internal update –Relationships with freight community –Description of freight flows –Industry characteristics –Economic analysis

8. Broad Area of Interest

9. Survey Received responses from across the freight world:Received responses from across the freight world: –Manufacturing –Logistics –Railroads –Warehousing –Retailing

10. Survey Core business concerns prevailedCore business concerns prevailed Transportation concerns:Transportation concerns: –Manufacturing and warehousing: Incoming delivery costs –Logistics: Transition at borders and ports –Railroads: Access to business customers

11. Bottlenecks Border crossingsBorder crossings Rail/intermodalRail/intermodal Urban freewayUrban freeway Local connectionsLocal connections

13. What This Means Border crossingsBorder crossings Intermodal exchangeIntermodal exchange Freeway reliability especially at interchangesFreeway reliability especially at interchanges Local connections to freewaysLocal connections to freeways

14. Southeast Michigan Freight Flows Detailed look at tons and value by:Detailed look at tons and value by: –Mode of transport –Industry –Origin and destination

15. Example: Where Freight Moves Remainder of USAAdjacentStateCanada MichiganMexicoInboundOutbound

16. Industry Characteristics Different industries have different transportation needsDifferent industries have different transportation needs Profiles includeProfiles include –Industry-specific trends, issues, opportunities –Site selection criteria –Supply chain characteristics

17. Industry Selection Industries withIndustries with –High regional concentration –Large employment –Growing –Reliant on shipping

18. Profiled Industries Transportation equipment manufacturingTransportation equipment manufacturing Machinery manufacturingMachinery manufacturing Plastics and rubber parts manufacturingPlastics and rubber parts manufacturing Fabricated metal parts manufacturingFabricated metal parts manufacturing Wholesale tradeWholesale trade HealthcareHealthcare Accommodation and food servicesAccommodation and food services

19. Simplified Economic Analysis Tool Spreadsheet basedSpreadsheet based Consistent with SEMCOG practices and existing toolsConsistent with SEMCOG practices and existing tools Leverage available resources (e.g., travel demand model, MDOT economic tools)Leverage available resources (e.g., travel demand model, MDOT economic tools) Consider economic impacts of freight- related and other transportation projectsConsider economic impacts of freight- related and other transportation projects

21. What the Tool Will Estimate Specific regional economic impactsSpecific regional economic impacts –Gross regional product –Personal income –Employment (total and by industry group) Cost-effectiveness measuresCost-effectiveness measures –Benefit-cost ratio –Net present value

22. Sample Results Note: numbers above are illustrative

23. Recommendations Projects Improve border crossingsImprove border crossings New International Trade CrossingNew International Trade Crossing Existing crossingsExisting crossings Improve intermodal freight transfersImprove intermodal freight transfers Detroit Intermodal Freight TerminalDetroit Intermodal Freight Terminal Improve freeway performance and reliabilityImprove freeway performance and reliability

24. Recommendations Projects Improve last-mile connections between major highways/rail lines to businessesImprove last-mile connections between major highways/rail lines to businesses Extend the life of pavementExtend the life of pavement National ballast water standardNational ballast water standard

25. Continued coordination with Detroit Regional Chamber and othersContinued coordination with Detroit Regional Chamber and others Ongoing industry engagementOngoing industry engagement Focus on system flexibilityFocus on system flexibility –Intermodal transfer –Border trade –Freeway performance Recommendations Planning

26. New International Trade Crossing Connects the world’s largest trading partnershipConnects the world’s largest trading partnership Detroit crossings – over $90 billion/yearDetroit crossings – over $90 billion/year Canadian trade supports 237,000 Michigan jobsCanadian trade supports 237,000 Michigan jobs Needed for redundancyNeeded for redundancy Canada’s top infrastructure priorityCanada’s top infrastructure priority

27. Detroit Intermodal Freight Terminal Fix rail interlockers responsible for major delaysFix rail interlockers responsible for major delays Add lift capacityAdd lift capacity Improve business and residential conditionsImprove business and residential conditions 50/50 public-private partnership50/50 public-private partnership

29. For More Information SEMCOGSEMCOGSEMCOG –Freight and Economic Analysis Freight and Economic AnalysisFreight and Economic Analysis Detroit Regional ChamberDetroit Regional ChamberDetroit Regional ChamberDetroit Regional Chamber –Translinked Study Translinked StudyTranslinked Study

30. Southeast Michigan Council of Governments