1. Network Appalachia Access to Opportunity in the Global Economy of the 21 st Century

2. 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

3. New Physical and Economic Links Appalachian Development Highway System Highway System 1. 3090 Mile System—13 states 2. 31 Individual Corridors 3. 85% Complete

4. Emerging Global Supply Chain Inland Port Locations

5. Launching Network Appalachia Launching Network Appalachia Net “A” Study Group 1. Transportation 2. International Trade 3. Economic Development FHWA Funding Secured Consultant Selected Design Research & Planning Activities

6. Macro-Economic and Demographic Transitions Economic Trends Global Real GDP (past 6 decades): + 8 fold, + 3.8% annually Global Real GDP (past 6 decades): + 8 fold, + 3.8% annually Global Trade Volume : + 64 fold, +7.6% annually Global Trade Volume : + 64 fold, +7.6% annually (Manufactured Goods) (Manufactured Goods) US Economy (International): 1950-3%, 2000-25%, 2050-50% Demographic Trends Population is shifting from North/Inland to South/Coastal Population is shifting from North/Inland to South/Coastal Population is aging Population is aging 2000 – 1 in 5 Americans are retirement age2000 – 1 in 5 Americans are retirement age 2030 – 1 in 3 Americans are retirement age2030 – 1 in 3 Americans are retirement age Demographics shifts affect: Demographics shifts affect: Demand/consumption shifts from manufacturing to service sectorDemand/consumption shifts from manufacturing to service sector Labor force shifts from manufacturing toward service sectorLabor force shifts from manufacturing toward service sector U.S. Manufacturing Grows & Shifts Lower value/profit commodities seek low cost off-shore labor Lower value/profit commodities seek low cost off-shore labor Higher value/profit commodities sustain a domestic presence Higher value/profit commodities sustain a domestic presence

7. The Global Marketplace: Looking Forward (% of World GDP) 2004 2050

8. Intermodal Global Supply Chain Global Commodity Flows Increase & Diversify Domestic Flows (2000-2020): +2/3 Domestic Flows (2000-2020): +2/3 International Flows (2000-2020): Double International Flows (2000-2020): Double Latin/South America Flows (2000-2020): Triple Latin/South America Flows (2000-2020): Triple Average Distance/Shipment: Average Distance/Shipment: 1993 – 420 miles1993 – 420 miles 2003 – 590 miles (+ 40%)2003 – 590 miles (+ 40%) Intermodal: 21 st Century Mode of Choice World container ports: 1970 - 75 ports, 2005 – 550 ports World container ports: 1970 - 75 ports, 2005 – 550 ports Volume of container throughput, US gateway ports: Volume of container throughput, US gateway ports: 1970 – 1 million2000 – 20 million 2020 – 50 million2050 – 100 million Global Trade Lanes Emerge East – West: US-North Asia, US-Europe/South Asia North – South: US- Latin/South America

9. Engaging the Region Five Workshops Five Workshops 500 Participants 500 ParticipantsBusinessCivicAcademic Output Output Strategic Priorities Strategic Priorities Tactical Opportunities Tactical Opportunities

10. Network Appalachia Findings Over past 6 decades, GDP +8 fold, trade +64 fold Over past 6 decades, GDP +8 fold, trade +64 fold Long-term economic expansion is underlying driver, plus: 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 While annual trends vary, global economy is fully established East-West trade lanes remain strong, North-South will grow East-West trade lanes remain strong, North-South will grow Global supply chain is intermodal by nature, ports are gateways Global supply chain is intermodal by nature, ports are gateways Access to supply chain is essential for competitiveness Access to supply chain is essential for competitiveness Enhanced intermodal coordination improves capacity, cost- efficiency, reliability, and addresses intensifying energy & environmental issues Enhanced intermodal coordination improves capacity, cost- efficiency, reliability, and addresses intensifying energy & environmental issues

11. Network Appalachia Intermodal Corridors of Commerce & Inland Ports

12. 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

13. Network Appalachia