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Presentation to NC's Southeast TAG Annual Meeting Roberto Canales, PE Secretary’s Coordinator of Strategic Initiatives February 9, 2012

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Page 1: DOT presentation

Presentation to NC's Southeast TAG Annual Meeting

Roberto Canales, PESecretary’s Coordinator of Strategic Initiatives

February 9, 2012

Page 2: DOT presentation

Overview of State Logistics Initiatives

• Logistics Coordinating Council (LCC)• Reorganization/Transfer efforts• Governor’s Logistics Task Force (GLTF)

• Seven Portals Study• North Carolina Maritime Strategy

Page 3: DOT presentation

Introduction Top Location Selection Factors

1) Transportation Infrastructure2) Existing work force skills3) State & local tax scheme4) Utility infrastructure5) Land/building prices & supply6) Ease of permitting and

regulatory procedures7) Flexibility of incentives

programs8) Access to higher education

resources9) Availability of incentives10) State economic development

strategy

Site Selection MagazineSurvey of Corporate Executives

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Introduction House Bill 1005Session Law 2007-551

Instructed the North Carolina OfficeOf State Budget and Management toDevelop a statewide logistics planthat addresses the State’s long-termeconomic, mobility, andInfrastructure needs.

Final product a high level proposal tostart the creation of a true “logistics”based culture.

www.ncdot.gov

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• Established by Executive Order 32 (Dec 2009)• Task Force work was extended via Executive Order 111

—current sunset is March 31, 2012• Task Force has completed its regional outreach efforts

and are working to develop its final recommendations• DRAFT Seven Portals Study has been completed

Governor’s Logistics Task Force

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Task Force Mission and Goals

The mission of the task force is to strategically create jobs and recruit industry by developing an efficient and cost effective vision plan for the seamless movement of people, goods and information throughout the state of North Carolina.

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Task Force Mission and GoalsTake action to support the mission:

Public and Stakeholder Involvement Focus on “statewide” Economic Vitality Identify the regional programs and

infrastructure supporting industries vital to the State's long term economic viability

Assess the existing resources and project future needs of the state’s multi-modal transportation systems

Investigate reductions or transfer of functions from existing governance structures to aid efficiency and avoid duplication

Recommend short, medium and long range plans which will integrate operation seamlessly and manage state funds more strategically

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• August 2010 Report to Governor• January 2011 Report to the General Assembly• February 2011 Report to the Governor• November 2011 Report to the Governor—Request for

an extension of the Task Force until March 31, 2012• **March 2012 Report to the Governor—Task Force

Final Recommendations

http://www.ncdot.gov/business/committees/statewidelogistics/

Governor’s Logistics Task Force Reports

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North Carolina 7 Portals StudyIdea:

Assess possible locations for transport-driven logistics portals statewideBase them on the seven economic regionsExamine modal connections, land availability, economic growth impactpotential, feasibility, benefits, up-fit costs, governance, partnershipsDo not reinvent the wheel

Themes:From our back yard to your doorstep, worldwideEasy and affordable access to transportation

Result:Feasibility assessment (economics, land use, modal connections, Supporting commercial, educational and cultural activities)

Intended impact:New knowledge economy-based enterprises (jobs)Enhanced logistics connectivityImproved, integrated, statewide transportation support

Opportunities

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7 Economic Regions of NC

ITRE

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What drives each region’s economy? Agriculture Tourism Military

Where are the customers? International National Regional

Is the region prepared / cost to prepare? Rail Highways Air Maritime Utilities (Power / IT / Water-Sewer)

Who will govern / fund it? Private Public Public / Public Private / Public

    

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Geographic Reach:International, National, Regional, Local

Economic Sector:Agriculture, Tourism, Health & Wellness, Aerospace, Manufacturing, Other

Preparedness:Highway, Rail, Air, Maritime Support, Power, IT, Water/Sewer, Community College/University Support, Environmental, Tax Incentives, Grants, Other Funding, Inter-Institutional Organization, Labor Pool, Other

Up-fit Cost:Highway, Rail, Air, Maritime

GovernancePrivate / PublicPublic / Public

Site Assessment Metrics

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Task Force Next StepsPrior to its completion on March 31st, 2012, the Task Force will complete the following tasks in an effort to produce comprehensive recommendations:

• Review of the final recommendations of the Seven Portals Study• Review of the recommendations of the Maritime Strategy Study• Review the findings and recommendations of the Military Growth

Task Force’s Defense Logistics Initiative study• Review of information presented through its statewide

outreach efforts

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North Carolina Maritime Strategy Study• Common theme across state was the need for a port

presence in North Carolina• Need for a third-party assessment • Task Force recommended that NCDOT execute a contract • AECOM, URS, and Eydo

http://www.ncmaritimestudy.com/

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“How can NC prepare itself to become a portal to the global economy?”

Economic Viability & BenefitOther State’s Port StatusShippersIndustry Targets / Niche MarketsPotential Site/sWater Side / Land Side CostState & Local ImpactsPublic Outreach & Input

http://www.ncmaritimestudy.com/

NC Commercial Maritime Strategy

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Source: US Census Bureau, Department of Commerce

Map: BBC

Transpacific

Transpacific

China’s entry into WTO was a game-changer……creating the need for a new, high-capacity, point-to-point pipeline for goods between Asia and North America

Today, US imports are driven by China trade

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Panama Canal Expansion – a New Paradigm?

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Access to dense population centers

Water depth is big issue

Increased berth size

Container capacity

Promote & enhance existing assets

Atlantic Coast Perspective

…. What are North Carolina’s challenges and opportunities?

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Maritime Study Scope

• Conduct an open evaluation of North Carolina’s position, opportunities and challenges as a portal for global maritime commerce;

• Examine the role of North Carolina ports in sustaining and strengthening the State’s economy;

• Obtain input from freight transportation, economic development, and community interests, and

• Identify specific strategies to optimize benefits received from the State’s investments in port and associated transportation infrastructure.

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Study Outcomes Decision tool and process for evaluating port and related multi-

modal investments Basis for long- and short-term investment strategy for more

efficient, effective and safe movement of waterborne cargo in and out of the state

Identification of priority projects Support for long-range planning Address institutional issues to approach maritime transportation

issues in a more seamless manner

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Summary Schedule and Milestones

Data Analysis Market Scenarios

Alternatives Definition

Alternatives Evaluation

Final Report

North Carolina Economic

Context & Trade Flows

Statewide Infrastructure

Needs

Evaluation / Decision

Matrix

Project Kick-OffMay 2011

Recommendations December 2011

Final ReportFebruary 2012

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Military Reset Study/Defense Logistics Initiative

• Study regarding the maintenance, repair, and reset of military equipment (ground force specific)

• Developed by the NC Eastern Region Military Growth Task Force

• Study is working in partnership with the Governor’s office

• DOT has supported the initiative

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Traditional Depot-Level Maintenance Flow

W h y N o r t h C a r o l i n a ?

Longer distance equals Greater energy consumption Larger carbon footprint Extended time Military Base

Military DepotPort of Entry

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Vision

Study AreaW h y N o r t h C a r o l i n a ?

Proximity equals Lower energy

consumption Reduced carbon

footprint Less transport

time

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Wilmington 42’ navigational channel Modern transit and warehouse facilities,

FTZ #66 CSX rail access Ro-Ro capability Committed military capacity

Ports TodayE x i s t i n g C a p a c i t y

Morehead City 45’ navigational channel Access to I-95 and I-40 via US 70 & US 17 Norfolk Southern rail service Ro-Ro capability Committed military capacity

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CSX and Norfolk Southern (Class I railroads) serve NC sea ports

3,250 miles of freight rail lines throughout NC 23 active freight railroad companies operating in NC Proven ability to work with communities to develop

rail sidings associated with industrial sites

Rail TodayE x i s t i n g C a p a c i t y

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Airports: Global TransPark 11,500’ x 150’ grooved runway

(supports the largest air-freight planes)

Intermodal industrial park, FTZ #214

Rail spur connection to NCRR (Spring 2012)

Entitled (property-tax exempt) development sites

Environmentally permitted for 5,775 acres

US TRANSCOM – certified APOE

Study Area

Rail Spur

E x i s t i n g C a p a c i t y

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Workforce North Carolina is a right-to-work state

Experienced military personnel prepared to enter the private sector workforce

Organizations like PipelineNC.com, ihiremilitary.com and MatchForce.org mobilized to assist the emerging workforce

NC Community college system actively partnering with military installations to prepare the emerging workforce

Study AreaE x i s t i n g C a p a c i t y

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State Transportation Logistics Coordinating Council• Created by Executive Order 85: [Signed March 25, 2011]• Membership:

• Secretary of Transportation (Chair)• Executive Director of the North Carolina Global

TransPark• Chief Executive Director of the North Carolina State

Ports Authority• President– North Carolina Railroad Company• Other persons as determined necessary

by the Secretary

Page 30: DOT presentation

State Transportation Logistics Coordinating Council• The Council is tasked with:

• Identifying areas for cooperation among the State’s transportation logistics entities, including improving the State’s transportation services

• Coordinating on projects to create or expand companies in North Carolina or to attract companies to the State

• Sharing of personnel and resources to the maximum extent practicable.

• To date, the Council has met once and staff is developing information for the group’s consideration related to numerous projects and directives communicated by the group

Page 31: DOT presentation

Creation of a Freight Logistics Authority

Purpose: Guide, oversee, and synchronize investments in transportation infrastructure

Method: Take actions and advise the Governor about investments that will improve the state’s prosperity and quality of life.

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Logistics Agency Consolidation• The General Assembly, Logistics Task Force and the

Governor all recommended consolidation of the state’s logistics assets

• The General Assembly in 2011, realigned both the North Carolina State Ports Authority and the North Carolina Global TransPark under the authority of DOT• NCSPA: Session Law 2011-145 (Section 14.6 (a) thru

(k)• NCGTP: Session Law 2011-340

• Statewide Logistics Coordinator

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NC Ports Realignment• Under the Type 2 transfer, Authority required to use state human resources

and fiscal/budgeting systems[Session Law 2011-145 Section 14.6(a)]• The North Carolina State Ports Authority shall use the State's budgeting,

accounting, and human resources systems and shall comply with laws and policies related to submitting budget requests to the Office of State Budget and Management.

• Realignment of the Authority within DOT and under the direct supervision of the Secretary of DOT [Session Law 2011-145 Section 14.6(h)]

• The North Carolina State Ports Authority is hereby created within the Department of Transportation and shall be subject to and under the direct supervision of the Secretary of Transportation. It shall be governed by a board composed of nine members and hereby designated as the Authority. Effective July 1, 1983, it shall be governed by a board composed of 11 members and hereby designated as the Authority.

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NC Ports Transition Process3 Prong Process: NCDOT/NCSPA Workteams, Board Interaction, Strategic Planning

• Board Interaction• 8 member subcommittee: 4 BOT members , 4 NCSPA members[future plans to

incorporate GTP board as well]• Jan 10th: Initial Meeting

• Workteams• 27 in total– Made up of both NCDOT and NCSPA staff (roughly 60 people) representing

all areas of both organizations• Groups are working to find areas of efficiency and developing relationships with their

respective counterparts• Strategic Planning

• Development of an integrated and comprehensive strategic business plan with measurable deliverables

• 5/10 Year Workplan• NCDOT 2040 Strategic Plan

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“If you don’t know where you are going, you might end up some place else.”-Yogi Berra