detroit region transportation, distribution and logistics report on progress

The Detroit Region’s

Opportunity

August 1, 2011 –

January 31, 2012 Creating Jobs by Developing the Transportation, Distribution and Logistics Sector

A Report on Progress to:

• New Economy Initiative for Southeast Michigan (NEI)

• Michigan Economic Development Corporation (MEDC)

Carolyn Gawlik

Detroit Regional Chamber Foundation

One Woodward Avenue, Suite 1900

Detroit, Michigan 48232

The Detroit Region’s Opportunity

Aug. 1, 2011 – Jan. 31, 2012 1


C R E AT I N G J O B S B Y D E V E L O P I N G T H E T R A N S P O R TAT I O N ,

D I S T R I B U T I O N A N D L O G I S T I C S S E C T O R

Table of Contents

BACKGROUND...................................................................................................................... 2

PROGRESS IN MEETING OVERALL PROGRAM OBJECTIVES .................................................. 2

WORKSTREAMS ................................................................................................................... 3

BENCHMARKS AND METRICS ACHIEVED ............................................................................. 4

Workstream 1 .............................................................................................................................................. 4

Michigan’s Statewide Strategy ............................................................................................................... 4

Workstream 2 .............................................................................................................................................. 4

Workstream 3 .............................................................................................................................................. 4

75-Day Plan for Business Case Development ......................................................................................... 4

Private Sector Engagement and Business Case Development: Conversations with Freight Forwarders, Shippers, Carriers, and Trade Associations ............................................................................................................. 5

Private Sector Engagement and Workforce Development: TDL Employer-Needs Assessment ............ 7

Freight Study Completion ......................................................................................................................... 7

Other Activities ......................................................................................................................................... 8

REGIONAL COLLABORATION ............................................................................................................. 8

Results ...................................................................................................................................................... 9

Action Plan ............................................................................................................................................. 12

Next Steps ............................................................................................................................................. 13

Stages of Freight Engagement .............................................................................................................. 13

Implementing the Action Plan ............................................................................................................... 14

Freight Infrastructure Study .................................................................................................................. 14

Workstream 4 ........................................................................................................................................... 14

Workstream 5 ........................................................................................................................................... 17

Workstream 6 ........................................................................................................................................... 17

SIGNIFICANT EVENTS OR CONDITIONS THAT HAVE IMPACTED ABILITY TO MEET PROJECT OBJECTIVES........................................................................................................................................... 18

ADDITIONAL INFORMATION THAT MAY BE OF INTEREST .................................................. 18

Translinked Branding ............................................................................................................................. 18

Border Wait Times Analysis.................................................................................................................. 18

Statewide Branding ............................................................................................................................... 18

APPENDIX A: BENCHMARKING .......................................................................................... 19


Aug. 1, 2011 – Jan. 31, 2012 2

Benchmarking: Columbus, OH ............................................................................................................... 19

Benchmarking: Kansas City, MO & Kansas City, KS ............................................................................ 19

Benchmarking: Halifax, NS ................................................................................................................... 20

APPENDIX B: ...................................................................................................................... 21

APPENDIX C: ...................................................................................................................... 22

BACKGROUND In 2007, the Detroit Regional Chamber embarked on a mission to leverage the Detroit region’s transportation assets for

business attraction. The importance and value of the region’s freight movements are crucial for the national economy.

Few areas in the country can match the number and variety of assets in this region. Our history in manufacturing and

logistics related to the automotive industry has given us access from the major international ports to the heart of

manufacturing and production in the United States. Translinked was introduced at the Detroit Regional Chamber 2008

Mackinac Policy Conference and was made of the Chamber and its members to strategically plan our future logistics and

mobility resources. Translinked’s focus is to develop the Southeast Michigan, Northwest Ohio, and Southwest Ontario

region into a world-class and globally recognized transportation and logistics hub.

In spring of 2010, the Detroit Regional Chamber and Michigan State University released a study concluding that Metro

Detroit could create up to 66,000 new jobs and $10 billion in new annual economic development if the region develops a

coordinated, cross-border supply chain management strategy. That fall, the New Economy Initiative (NEI) for Southeast

Michigan and the Michigan Economic Development Corporation (MEDC) granted the Detroit Regional Chamber

Foundation an award to develop a regional logistics and supply chain hub in the Detroit trade area. This report describes

the activities of the Detroit Regional Chamber Foundation on this work from August 1, 2011 through January 31, 2012.

PROGRESS IN MEETING OVERALL PROGRAM OBJECTIVES The Translinked project includes collaboration with key transportation, distribution, and logistics (TDL) business leaders,

Michigan State University, Wayne State University, Southeast Michigan Council of Governments (SEMCOG), academic

and research thought leaders, and economic development organizations throughout Southeast Michigan, Northwest

Ohio, and Southwest Ontario.

The project has been divided into the following workstreams.


Aug. 1, 2011 – Jan. 31, 2012 3

WORKSTREAMS


Aug. 1, 2011 – Jan. 31, 2012 4

BENCHMARKS AND METRICS ACHIEVED

Workstream 1

Recommendations for a regional entity, together with an organizational structure that can be implemented and

sustainably funded (working jointly with Michigan State University).

Over the past six months, Translinked has met with representatives from other regions to benchmark the logistics

intermediaries of these areas. We asked leaders of the intermediaries in Columbus, Kansas City, and Halifax (see

Appendix A) what works and what doesn’t work for their particular regions when it comes to successfully coordinating

the region as a logistics hub. The best practices we learned from other regions tie in with the characteristics of

successful intermediaries we came up with in our series of three intermediary design workshops we held in partnership

with Michigan State University in 2011.

Two key factors that help other logistics hubs achieve success:

1. Speaking with a unified voice in the region.

2. Maintaining extensive private sector buy-in, leadership, and support.

Michigan’s Statewide Strategy

The Michigan Economic Development Corporation (MEDC), the Michigan Department of Transportation (MDOT), and the

Michigan Department of Agriculture and Rural Development (MDARD) are working together on a statewide strategy to

create a coordinated effort to attract and retain business based on the state’s supply chain value proposition. This

strategy is contingent on strong representation from the public and private sector, educational institutions, and shippers.

Translinked is engaged to ensure the Detroit region’s stakeholders are supportive of and involved in the state’s efforts to

coordinate its assets and maximize the economic potential.

Workstream 2

Development of supply chain pilot projects to demonstrate the value proposition for an international TDL hub

(collaborating with lead organization Michigan State University).

Michigan State University continues work on several pilot service bundles that will demonstrate the value proposition for

moving freight through the region. Companies have been identified for pilots and work is under way. Translinked is eager

to support them as needed.

Workstream 3

Design a truly regional economic development strategy for the TDL sector – informed by NEI – and conduct the

appropriate economic analyses.

75-Day Plan for Business Case Development

BACKGROUND

Translinked held a meeting on the supply chain network on September 1, 2011 to bring together interested parties from

the public and private sector, including members of other TDL initiatives around the region. Over 90 individuals attended

the meeting at the Detroit Regional Chamber, representing economic development organizations, educational


Aug. 1, 2011 – Jan. 31, 2012 5

institutions, local, county, state and Canadian governments, businesses, and others. Representatives from Ann Arbor,

Detroit, Flint, Lansing, Port Huron, Toledo, Windsor and other areas were present.

CREATION OF THE 75-DAY PLAN

Feedback from attendees at the September 1 meeting, as well as from a survey we distributed afterward which received

46 responses, helped shape the activities of the Translinked initiative for the next 75 days. We created a 75-day plan,

aiming to develop a written value proposition and business case for the increase of freight activity and investment in the

region, built on three key pillars: private sector engagement, freight study completion, and external outreach. The 75-day

plan document can be downloaded at www.translinkeddetroit.com.

ACCOMPLISHMENTS

Through implementing the 75-day plan, Translinked achieved the following results.

Private Sector Engagement and Business Case Development: Conversations with Freight

Forwarders, Shippers, Carriers, and Trade Associations

By leveraging the Detroit Regional Chamber’s relationships with the business community, Translinked reached out to

organizations that develop and implement supply chain solutions and make decisions about freight. Most of the

individuals we talked to were high-level decision makers, experts in the field of logistics and supply chain management

who were willing to share their insight with us.

We sat down face to face individually with representatives from more than 30 organizations. We asked them a series of

questions to gain their insight in several areas:

• What’s working well for you in our region so far, so we know the best way to market our assets?

• Where do we have room to grow?

• What would make your life easier from a supply chain perspective?

• What do we need to do to optimize use of the U.S.-Canada border crossings in our region?

• Ultimately, what would it take to get more freight traffic and business investment here?


Aug. 1, 2011 – Jan. 31, 2012 6

Below are freight forwarders, shippers, carriers, and trade association organizations Translinked engaged during 75-day

plan implementation.


Aug. 1, 2011 – Jan. 31, 2012 7

Private Sector Engagement and Workforce Development: TDL Employer-Needs Assessment

In addition to engaging the private sector for value proposition development, Translinked began work to conduct an

employer-needs assessment by soliciting TDL workforce input from company human resources executives. An RFP for

development of the TDL Workforce Hub was released in November 2011. The Detroit Regional Chamber’s requested

services included development and execution of an in-person interview process that would include 35-50 top employers

in the TDL sector, resulting in a report with recommendations that will facilitate coordination and the exchange of

information among TDL employers, TDL educators and training programs, and workers. The report will include:

• Analysis of current and projected future workforce needs

• Information on hard-to-fill positions

• A description of current recruitment processes

• Identification of possible skill/training needs of the incumbent workforce

• Identification of best practices in recruitment and retention and possible development of career ladders within companies

• A summary of the gaps between demand and supply of labor in the TDL industry, including low, medium, and

high skill levels

The results of this research will be combined with the results of an ongoing regional TDL and supply chain management

training and educational program inventory Translinked is conducting, along with a preliminary survey of TDL employers

that Translinked administered in 2010.

The Detroit Regional Chamber selected Manpower to complete the TDL employer needs-assessment and make

recommendations for the creation of a virtual TDL Workforce Hub, a central resource connecting employers, training

organizations, employees, and entrepreneurs through a talent portal. This work will occur in coordination with the

Workforce Intelligence Network (WIN), an NEI and MEDC-funded multi-county talent initiative in Southeast Michigan.

Work on the needs-assessment is under way.

Freight Study Completion

Translinked partnered with TranSystems to conduct a study on freight in the Southeast Michigan, Northwest Ohio, and

Southwest Ontario region, which was released in December 2011. The study provides a data-based analysis of how the

supply chain market operates currently in the region. It gives us a look at where the freight in our region is coming from

and where it will end up, the modes by which the freight is traveling, the types of cargo being shipped, and a prediction

of what the future of freight in our region will look like.

The analysis outlines what is currently working well in the region, and equally importantly, identifies legitimate

opportunities for increased freight movement and investment. Specific industries and shippers who will benefit from

shipping freight through the region are identified. The study also highlights value-added services, the companies

providing them, and how they fit into the regional economy. Cost and timing of freight movements are compared among

the region and alternative regional hubs.

Summarized key findings:

• The Detroit region has market reach of 88.2 million people within a 10 hour drive (see Appendix B).

• Truck is the dominant mode with 72% of cargo volume and 81% of cargo value (see Appendix C).

• The Detroit region has the lowest cost to truck to major cities, up to 13% less than other Midwest cities.

• The Detroit region has over 1.2 million sq. ft. in warehouse space, and many have value added services.

• The Detroit region moved 287 million tons of freight valued at $414 billion in 2009.


Aug. 1, 2011 – Jan. 31, 2012 8

Summarized recommendations:

• Establish a Translinked commercial marketing initiative.

• Involve the private sector and remove barriers that slow down decision making.

• Remove variability from the border crossing process, include rail facilities and third party logistics providers (3PLs) that reduce transportation costs, and increase flexibility.

• Market the initiative and freight corridors.

TranSystems divided the study into five tasks.

• Task one provides an analysis of the existing freight flow. This analysis determines freight flow patterns

(origins, destinations, modes, volume, and value), logistics service requirements, and the implications for the

study area. It identifies market sectors and services that offer the greatest potential for the region.

• Task two identifies industry trends and opportunities for future growth. This task looks at the potential growth

in existing industries in the region as well as other industries that could be attracted to the region, and it

determines the supply chain and site selection requirements to attract new industries.

• Task three, a freight forecast, combines econometric modeling with adjustments for industry trends that may

influence domestic and international cargo movement to provide robust and defensible projections for freight

movement.

• Task four provides a comparative analysis of our region to other logistics hubs, looking at specific industries to

see how this region compares in providing necessary criteria to attract and provide growth opportunities to

these sectors. It also compares the general cost and timing of freight movements through this region to the cost

and timing of freight movements through alternative routes.

• Task five, findings and conclusions, represents a synthesis of the freight flow analysis, industry trend research,

and the region’s competitive factors to develop a comprehensive view of the market drivers that determine what

freight will move through this region and how the region can capitalize on available future opportunities. These

outcomes will serve as the catalyst for engaging other private sector firms.

The executive summary and full version of the freight study are available for download at www.translinkeddetroit.com.

Other Activities

REGIONAL COLLABORATION

Translinked is working on products that will develop a mechanism for regional collaboration. This will allow

organizations to share information in order to create synergies and avoid duplication of efforts while advancing toward

the common goal of job creation and investment.

• Common calendar – Set to be housed in a new Translinked website, a shared TDL calendar will reflect all key

events, workshops, and meetings occurring both in and out of the trade region. A common calendar will allow

organizations to find opportunities to collaborate and make events more impactful.


Aug. 1, 2011 – Jan. 31, 2012 9

• Data sharing site – The Detroit Regional Chamber is developing a common data management system to provide

uniform data and messaging to economic developers in the region. Wiki software is currently in the testing

stages.

• Economic development toolkit – In December 2011, Translinked released an RFP for a web-based TDL toolkit for

economic development professionals. Additional detail about the rationale and content of the toolkit appears on

page 17 under Workstream 5. Input has been sought from economic development professionals to ensure it will

provide a valuable tool to complement their business attraction efforts. Responses to the RFP have been

received and reviewed with the vendor selection to be complete by March 2012.

Results

VALUE PROPOSITION

Based on Translinked’s engagement with the private sector, the results of the regional freight study, and our external

outreach, we have drafted a value proposition and a corresponding action plan.

The value of the region can be summarized within its location, infrastructure, talent, and industry. Those assets provide

value through many important aspects of supply chain, including market access, modes of transportation, education and

training programs, experienced professionals, capacity to ship freight, reliability, and a competitive total cost to do

business.


Aug. 1, 2011 – Jan. 31, 2012 10

Regional Supply Chain Value Proposition

What we heard: Our value as a region lies in four main categories of assets: location, infrastructure, talent, and

industry.

Market access: We reach markets of over 88 million people within a 10-hour truck drive, and we have access to

international trade through our Canadian/U.S. border crossings. We have a world-class airport system and our four Class

I railroads allow us to service the eastern U.S., the Midwest, Canadian markets, Central Plains states, and the Gulf

states.

Modes: We have four Class I railroads with access to the eastern U.S., the Midwest, Canadian markets, Central Plains

states, and the Gulf state region. The Detroit Region Aerotropolis provides global air access with nonstop service to more

than 160 destinations. Interstate highways reach from Canada to Mexico while connecting our region to both the East

and West coasts. The Detroit, Toledo, and Windsor water ports are among the largest along the St. Lawrence Seaway.


Aug. 1, 2011 – Jan. 31, 2012 11

Training programs: We have a range of training programs from certificate programs through advanced degrees,

including the number one supply chain management program in the U.S. at Michigan State University.

Experienced professionals: Growing out of our automotive history, we currently have 235,000 people working in the

TDL sector.

Capacity: We have half a billion total square feet of warehouse space, and there is room for growth in our distribution

centers, on our roads, rails, and waterways. We can accommodate more freight today without congestion and time

delays.

Reliability: Our region has one of the lowest rates of weather-related cancellations in the country. We have the

capacity to accommodate increased volumes of freight without time delays.

Competitive total landed cost: The region offers a competitive total cost of shipping a product to the buyer’s door.

Typically, trucking costs are a significant driver of this number, and our trucking costs to major markets are significantly

lower than competing regions like Columbus, Chicago, and Harrisburg.


Aug. 1, 2011 – Jan. 31, 2012 12

Action Plan

Based on private sector engagement, freight study results, and external outreach, we determined several areas for

growth, classified into the four main asset categories: infrastructure, talent, industry, and location.

Regional Supply Chain Action Plan

Asset Need Task Timing

Short Term Mid Term Long Term

Infrastructure

Intermodal capabilities Support DIFT project DIFT DIFT

Road repair and maintenance

Advocate for transportation

funding

New International Trade Crossing Continue bridge advocacy

Talent

Railroad workforce Create career awareness

Establish training

program

Trucking workforce Create career awareness

TDL workforce hub Launch virtual hub

Industry

Market outreach program

Raise awareness of regional

supply chain value proposition

and provide export support

Attract and

retain business

Attract and

retain business

Intermodal facilities Support DIFT project DIFT DIFT

Climate-controlled warehouses Conduct a gap analysis

Ocean carrier engagement Perform needs analysis

Location

Agricultural inspection capacity Perform gap analysis

Border crossing consistency Establish root causes

Fact-based marketing effort

Incorporate regional facts into

awareness campaign


Aug. 1, 2011 – Jan. 31, 2012 13

Next Steps

SHARING OUR VALUE

The value proposition will allow us to have consistent messaging and data and speak with a common voice. Our

audience is broad and global. We need to market our assets and share success stories from companies located in our

region who are already realizing the benefits of our regional value proposition. Site selectors are a key part of this broad

audience. Ensuring that site selectors are informed about our regional supply chain advantages is critical so our region is

considered when making location decisions.

Our value proposition will help develop consistent messaging and data to assist economic developers in speaking with a

common voice. Communicating our value proposition to economic developers at the city, county, and state level can help

ensure that they have the information they need to include supply chain as part of the conversation when they are

working to attract and retain businesses. This information, coupled with economic developers’ in-depth understanding of

their clients’ needs, will allow the messaging to companies to be tailored on a company-by-company basis.

Stages of Freight Engagement


Aug. 1, 2011 – Jan. 31, 2012 14

Implementing the Action Plan

Our next step for implementing the regional supply chain action plan includes dividing the action plan into discrete,

actionable steps. Then we will work to engage the right regional stakeholders to take action. To coordinate these efforts

to ensure completion and progress, we will apply our program management process, which includes appropriate

timelines, follow-up, meetings, and information sharing.

The good work we have completed over the past few months has led to a value proposition and plan of action for

progress. By sharing the value proposition and executing the action plan, we will achieve our common goals of

developing a TDL cluster of excellence, which will lead to job creation and investment within our region.

Freight Infrastructure Study

Additionally, Translinked serves on SEMCOG’s Infrastructure Study Advisory Committee. SEMCOG is leading an

infrastructure study that will examine the region’s freight infrastructure from multiple perspectives. The project will

assess the transportation network’s ability to supply current and future freight-intensive Southeast Michigan industries

with efficient and reliable goods movement. Connecting freight projects to economic development will aid in making

informed decisions about how to realize the best return on investment while programming limited transportation funds

and maximizing our transportation assets for their economic development potential. The Study Advisory Committee is a

working group that will provide expert insights that will be used to guide the course of the study, review the study’s

progress, and shape the study’s products and recommendations.

Workstream 4

Development of an education campaign to inform key stakeholders (collaborating with lead organization Michigan State

University).

As part of the Translinked initiative, the Detroit Regional Chamber seeks to inform and educate regional stakeholders

about the opportunity to develop the TDL sector. The region already moves a tremendous amount of freight and includes

an impressive array of assets. Working to raise awareness of the region’s potential and reach out to stakeholders for

input, the Detroit Regional Chamber attended or presented at gatherings of these important stakeholders to increase

recognition of the region’s supply chain value proposition.

TMACOG Ohio Conference on Freight

Consulate General of Canada in Detroit

Consulate General of Japan in Detroit


Aug. 1, 2011 – Jan. 31, 2012 15

Nissan Technical Center

Eastern Border Transportation Coalition

Halifax Port Days

SEMCOG Infrastructure Study Advisory Council

West Michigan Policy Forum

AASHTO Annual Meeting

Red Hot Locations FDI Seminar in Toronto

TranSystems Freight Study Review

That Michigan Show on Prima Civitas Radio

GLITTH Summit and Committee

Windsor Transportation Committee

Initiative for a Competitive Inner City


Aug. 1, 2011 – Jan. 31, 2012 16

In addition to the external outreach above, contacts were developed and articles pursued at logistics publications such

as Transport Topics, Inbound Logistics, and Railway Age.

The Detroit Regional Chamber takes every opportunity to participate at community events and speaking engagements.

The Translinked website, www.translinkeddetroit.com, is kept populated with recent work updates, and the Translinked Twitter account is updated daily. Twitter followers have steadily increased over the last six months to nearly 1000 followers:

KPMG

North American International Auto Show

Columbus Chamber of Commerce

Detroit Wayne County Port Authority

Transportation Club of Detroit

Great Lakes Freight Gateway Summit

Focus Hope Place-based Workforce Strategy

Business Leaders for Michigan

AIAG Customs Town Hall


Aug. 1, 2011 – Jan. 31, 2012 17

Translinked Twitter Followers

The Translinked e-newsletter obtained more than 60 new subscribers in the past six months, increasing the total to nearly 1400 subscribers.

Workstream 5

Creation of a unified TDL brand strategy, marketing messages, and marketing plan for the region.

Translinked continues to work collaboratively with the Great Lakes International Trade and Transport Hub (GLITTH) as

well as Business Leaders for Michigan and MEDC, MDOT, and MDARD as branding for the region is strategized.

To facilitate common messaging for economic developers all over the region, Translinked is administering the

development of an economic development toolkit specific to the region’s supply chain assets. An RFP for an economic

development toolkit was released and will be sourced in February 2012. Economic development professionals at the city,

county, state, and provincial level provide the most interaction with the private sector through their business attraction

and retention efforts. Businesses are concerned with the total landed cost of their freight. Access to a site containing

customizable, co-branded supply chain fact sheets and collateral will give economic developers an important asset when

working with their clients. This tool will allow economic developers to easily access common data and marketing

messages.

Workstream 6

Provision for the necessary contractual services and appropriate administrative support.

The Detroit Regional Chamber continues to staff the Translinked initiative with two full-time employees and one

executive management team member, the senior vice president of economic development. The support staff within the

Chamber tasked with assisting Translinked with their activities includes a full in-house marketing and design team, a

team of event support staff, a talent and workforce development team, a new vice president of business attraction

(Maureen Krauss, former director of the Oakland County Department of Economic Development and Community Affairs),

and a government relations department operating in both Lansing and Detroit. The Chamber’s membership consists of

20,000 members and affiliates, making the Detroit Regional Chamber one of the largest chambers of commerce in the

country.


Aug. 1, 2011 – Jan. 31, 2012 18

SIGNIFICANT EVENTS OR CONDITIONS THAT HAVE IMPACTED ABILITY TO MEET PROJECT OBJECTIVES The funding for Translinked is scheduled to expire in September 2012. We would like to request a no cost five month

extension on the timeline of the grant due to the transition in staff in early 2011 and the time it has taken to coordinate

with various TDL collaboratives around the state. Additionally, we request shifting a portion of the original budgeted

amounts from postage, office supplies, and printing into travel in order to better align the budget with the program

needs.

As the statewide strategy develops and we align the Translinked grant deliverables with the state’s direction, branding

is determined, private sector engagement is built, and we execute the findings from the 75-day plan for business case

development, Translinked plans to continue to do what is needed, including listening to the private sector and addressing

their concerns through an action plan and marketing our assets. We would like to continue connecting people and

serving as a source of information for TDL stakeholders across the board.

ADDITIONAL INFORMATION THAT MAY BE OF INTEREST

Translinked Branding

In mid-November, the initiative changed its branding from “TranslinkeD” to “Translinked,” complete with a new logo.

The newly lowercase “D” sends a message of reduced Detroit-centrism, subtly communicating the regionalism of the

initiative.

Border Wait Times Analysis

Border crossing consistency was identified as an area of concern. The U.S. Customs and Border Protection website

provides wait times at international borders in real time, but it does not allow for a collection of data to be viewed over

any given course of time (viewers can only see the wait time “right now”). To more accurately research border delays,

the Detroit Regional Chamber’s information technology staff devised a way to collect and save the data from the U.S.

Customs and Border Protection website. This data will allow for border wait times to be charted and analyzed, giving us

the opportunity to see whether preconceived notions the community may possess about border delays in Michigan-

Ontario are true or false. This data will grant us the valuable ability to see patterns in border delay times and a

comparison among border crossings.

Statewide Branding

The Detroit Regional Chamber will provide support and assistance in the state’s effort to brand and market the region’s

supply chain and logistics assets by providing staff from its marketing department to aid in the branding process.


Aug. 1, 2011 – Jan. 31, 2012 19

APPENDIX A: BENCHMARKING

Benchmarking: Columbus, OH

Inbound Logistics ranks Columbus as one of the nation’s logistics hotspots. The

Columbus Chamber of Commerce has administered several different iterations of

logistics initiatives over the years, according to Patty Huddle, vice president of

existing business solutions at the Columbus Chamber. For ten years, the

Columbus Chamber has been working with the Columbus Partnership, a group of

private industry and community leaders committed to investing in economic

development. They created a strategy called Columbus2020. The Columbus2020

organization has a staff that is committed to business attraction, but for

retention and expansion activities, they contract with the Columbus Chamber. Under those retention and expansion

activities falls the Columbus Region Logistics Council.

The Columbus Region Logistics Council is made up of representatives from upward of 100 companies from whom a

minimum financial investment is required, which includes both their Chamber membership and Council membership.

According to Huddle, 15 to 20 members attend Logistics Council meetings regularly. The Council drives its own activity,

including facilitating four educational/networking evening events per year and engaging committees that meet monthly

to gain consensus and identify needs.

The committee categories include:

• Infrastructure, which decides where to direct funding

• Technology, which identifies needs and opportunities and helps Columbus stay on the cutting edge of technology

development

• Business Environment, which addresses regulations that may impede or enhance business and focuses on marketing and raising awareness

• Workforce Development, which ensures coordination among employers, training programs, and the workforce. As the Council identifies regional needs, Chamber staff supports and manages the action plan, but Council members

provide many hours of volunteer service.

Benchmarking: Kansas City, MO & Kansas City, KS

In 1998, the Mid-America Regional Council, the

Greater Kansas City Chamber of Commerce, and the

Kansas City Area Development Council commissioned

the Mid-Continent TradeWay Study, an analysis to

"determine the feasibility and national benefits of

establishing the Kansas City region as a place where

international trade processing activities can be carried out." From this study, KC SmartPort was born. KC SmartPort is a

nonprofit, investor-based economic development organization for the existing logistics industry in Kansas City and the

attraction of logistics investment in the Kansas City region. KC SmartPort has very strong branding and marketing for the

region.


Aug. 1, 2011 – Jan. 31, 2012 20

KC SmartPort is a blend of the public and private sector. The region crosses political boundaries, reaching both Missouri

and Kansas. The plan for KC SmartPort addressed how to position the region to take advantage of international trade.

The Greater Kansas City Chamber of Commerce plays a significant role and provides a bridge to the private sector. The

investment structure of KC SmartPort is multi-tiered, and lists of investors classified by investment level are available on

their website. The KC SmartPort website provides many economic development benefits, including site selection

information, statistics, interactive maps, and service provider directories.

Benchmarking: Halifax, NS

In September 2011, Translinked traveled to Halifax and met with the Greater Halifax

Partnership, the Port of Halifax, and the Halifax Gateway Council during their Halifax Port

Days event. We talked to Halifax leaders about the opportunity involved with linking Halifax

to Detroit and about how they structure their organization. The structure of the Halifax

logistics intermediary is a blend of the Port of Halifax, the economic development agency,

and the private sector, primarily the logistics industry. Although there are individual entities

involved, they all align their efforts to make sure they have the broadest reach while minimizing duplication and

maximizing resources.

The Greater Halifax Partnership is a public-private partnership focused on economic development formed by business

leaders in 1995. It is funded by federal, provincial, and municipal governments and the private sector. The Halifax

Gateway Council (HGC) was established in 2004. The HGC provides a forum for transportation stakeholders in the Halifax

region to work collaboratively to improve the efficiency and competitiveness of the Halifax Gateway for the movement of

goods and people. The HGC is managed by the Greater Halifax Partnership and led by a board of directors comprised of

representatives from private and public sector organizations that rely on the Halifax transportation system. The Port of

Halifax oversees the brand “Halifax Gets It There” and a strong marketing campaign.


Aug. 1, 2011 – Jan. 31, 2012 21

10-HOUR TRUCK DRIVE-TIME AREA COMPARISON: DETROIT, MI, CHICAGO, IL, COLUMBUS, OH, AND HARRISBURG, PA

Source: TranSystems

APPENDIX B: The map in the figure below shows how far a truck can reach from Detroit within 10 hours, shaded in light green. Ten-

hour truck drives from Chicago are outlined in red, Columbus in blue, and Harrisburg in purple.


Aug. 1, 2011 – Jan. 31, 2012 22

DETROIT BEA CARGO IN 2009 BY TRANSPORT MODE

Note: Includes domestic and international, and all directions –

inbound, outbound, internal and through

Source: Derived from IHS Global Insight Transearch Data

APPENDIX C: The graph in the figure below compares freight shipped by truck, rail, water, and air by volume and value.

detroit region transportation, distribution and logistics report on progress

Business

o p i n g t h e t r

n s p o r tat

business case development

private sector engagement

stages of freight engagement

workforce development

i n g j o b s b y d

freight forwarders