Detroit Region Transportation, Distribution and Logistics Report on Progress

The Detroit Region’s OpportunityAugust 1, 2011 – Creating Jobs by Developing the Transportation,January 31, 2012 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 OpportunityThe Detroit Region’s OpportunityC 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 ,DISTRIBUTION AND LOGISTICS SECTORTable of ContentsBACKGROUND...................................................................................................................... 2PROGRESS IN MEETING OVERALL PROGRAM OBJECTIVES .................................................. 2WORKSTREAMS ................................................................................................................... 3BENCHMARKS 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 ........................................................................................................................................... 17SIGNIFICANT EVENTS OR CONDITIONS THAT HAVE IMPACTED ABILITY TO MEET PROJECT OBJECTIVES........................................................................................................................................... 18ADDITIONAL INFORMATION THAT MAY BE OF INTEREST .................................................. 18 Translinked Branding............................................................................................................................. 18 Border Wait Times Analysis.................................................................................................................. 18 Statewide Branding ............................................................................................................................... 18APPENDIX A: BENCHMARKING .......................................................................................... 19Aug. 1, 2011 – Jan. 31, 2012 1

The Detroit Region’s Opportunity Benchmarking: Columbus, OH ............................................................................................................... 19 Benchmarking: Kansas City, MO & Kansas City, KS ............................................................................ 19 Benchmarking: Halifax, NS ................................................................................................................... 20APPENDIX B: ...................................................................................................................... 21APPENDIX C: ...................................................................................................................... 22BACKGROUNDIn 2007, the Detroit Regional Chamber embarked on a mission to leverage the Detroit region’s transportation assets forbusiness 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 andlogistics related to the automotive industry has given us access from the major international ports to the heart ofmanufacturing and production in the United States. Translinked was introduced at the Detroit Regional Chamber 2008Mackinac Policy Conference and was made of the Chamber and its members to strategically plan our future logistics andmobility resources. Translinked’s focus is to develop the Southeast Michigan, Northwest Ohio, and Southwest Ontarioregion 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 MetroDetroit could create up to 66,000 new jobs and $10 billion in new annual economic development if the region develops acoordinated, cross-border supply chain management strategy. That fall, the New Economy Initiative (NEI) for SoutheastMichigan and the Michigan Economic Development Corporation (MEDC) granted the Detroit Regional ChamberFoundation an award to develop a regional logistics and supply chain hub in the Detroit trade area. This report describesthe activities of the Detroit Regional Chamber Foundation on this work from August 1, 2011 through January 31, 2012.PROGRESS IN MEETING OVERALL PROGRAM OBJECTIVESThe 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), academicand research thought leaders, and economic development organizations throughout Southeast Michigan, NorthwestOhio, and Southwest Ontario.The project has been divided into the following workstreams.Aug. 1, 2011 – Jan. 31, 2012 2

The Detroit Region’s OpportunityWORKSTREAMSAug. 1, 2011 – Jan. 31, 2012 3

The Detroit Region’s OpportunityBENCHMARKS AND METRICS ACHIEVEDWorkstream 1Recommendations for a regional entity, together with an organizational structure that can be implemented andsustainably funded (working jointly with Michigan State University).Over the past six months, Translinked has met with representatives from other regions to benchmark the logisticsintermediaries of these areas. We asked leaders of the intermediaries in Columbus, Kansas City, and Halifax (seeAppendix A) what works and what doesn’t work for their particular regions when it comes to successfully coordinatingthe region as a logistics hub. The best practices we learned from other regions tie in with the characteristics ofsuccessful intermediaries we came up with in our series of three intermediary design workshops we held in partnershipwith 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 StrategyThe Michigan Economic Development Corporation (MEDC), the Michigan Department of Transportation (MDOT), and theMichigan Department of Agriculture and Rural Development (MDARD) are working together on a statewide strategy tocreate a coordinated effort to attract and retain business based on the state’s supply chain value proposition. Thisstrategy 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 tocoordinate its assets and maximize the economic potential.Workstream 2Development 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 formoving freight through the region. Companies have been identified for pilots and work is under way. Translinked is eagerto support them as needed.Workstream 3Design a truly regional economic development strategy for the TDL sector – informed by NEI – and conduct theappropriate economic analyses.75-Day Plan for Business Case DevelopmentBACKGROUNDTranslinked held a meeting on the supply chain network on September 1, 2011 to bring together interested parties fromthe public and private sector, including members of other TDL initiatives around the region. Over 90 individuals attendedthe meeting at the Detroit Regional Chamber, representing economic development organizations, educationalAug. 1, 2011 – Jan. 31, 2012 4

The Detroit Region’s Opportunityinstitutions, 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 PLANFeedback from attendees at the September 1 meeting, as well as from a survey we distributed afterward which received46 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 theregion, built on three key pillars: private sector engagement, freight study completion, and external outreach. The 75-dayplan document can be downloaded at www.translinkeddetroit.com.ACCOMPLISHMENTSThrough implementing the 75-day plan, Translinked achieved the following results.Private Sector Engagement and Business Case Development: Conversations with FreightForwarders, Shippers, Carriers, and Trade AssociationsBy leveraging the Detroit Regional Chamber’s relationships with the business community, Translinked reached out toorganizations that develop and implement supply chain solutions and make decisions about freight. Most of theindividuals we talked to were high-level decision makers, experts in the field of logistics and supply chain managementwho 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 ofquestions 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 5

The Detroit Region’s OpportunityBelow are freight forwarders, shippers, carriers, and trade association organizations Translinked engaged during 75-dayplan implementation.Aug. 1, 2011 – Jan. 31, 2012 6

The Detroit Region’s OpportunityPrivate Sector Engagement and Workforce Development: TDL Employer-Needs AssessmentIn addition to engaging the private sector for value proposition development, Translinked began work to conduct anemployer-needs assessment by soliciting TDL workforce input from company human resources executives. An RFP fordevelopment of the TDL Workforce Hub was released in November 2011. The Detroit Regional Chamber’s requestedservices included development and execution of an in-person interview process that would include 35-50 top employersin the TDL sector, resulting in a report with recommendations that will facilitate coordination and the exchange ofinformation 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 levelsThe results of this research will be combined with the results of an ongoing regional TDL and supply chain managementtraining and educational program inventory Translinked is conducting, along with a preliminary survey of TDL employersthat Translinked administered in 2010.The Detroit Regional Chamber selected Manpower to complete the TDL employer needs-assessment and makerecommendations for the creation of a virtual TDL Workforce Hub, a central resource connecting employers, trainingorganizations, employees, and entrepreneurs through a talent portal. This work will occur in coordination with theWorkforce 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 CompletionTranslinked partnered with TranSystems to conduct a study on freight in the Southeast Michigan, Northwest Ohio, andSouthwest Ontario region, which was released in December 2011. The study provides a data-based analysis of how thesupply chain market operates currently in the region. It gives us a look at where the freight in our region is coming fromand where it will end up, the modes by which the freight is traveling, the types of cargo being shipped, and a predictionof 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 legitimateopportunities for increased freight movement and investment. Specific industries and shippers who will benefit fromshipping freight through the region are identified. The study also highlights value-added services, the companiesproviding them, and how they fit into the regional economy. Cost and timing of freight movements are compared amongthe 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 7

The Detroit Region’s OpportunitySummarized 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 ActivitiesREGIONAL COLLABORATIONTranslinked is working on products that will develop a mechanism for regional collaboration. This will alloworganizations to share information in order to create synergies and avoid duplication of efforts while advancing towardthe 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 8

The Detroit Region’s Opportunity • 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.ResultsVALUE PROPOSITIONBased on Translinked’s engagement with the private sector, the results of the regional freight study, and our externaloutreach, 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 providevalue through many important aspects of supply chain, including market access, modes of transportation, education andtraining programs, experienced professionals, capacity to ship freight, reliability, and a competitive total cost to dobusiness.Aug. 1, 2011 – Jan. 31, 2012 9

The Detroit Region’s Opportunity Regional Supply Chain Value PropositionWhat we heard: Our value as a region lies in four main categories of assets: location, infrastructure, talent, andindustry.Market access: We reach markets of over 88 million people within a 10-hour truck drive, and we have access tointernational trade through our Canadian/U.S. border crossings. We have a world-class airport system and our four ClassI railroads allow us to service the eastern U.S., the Midwest, Canadian markets, Central Plains states, and the Gulfstates.Modes: We have four Class I railroads with access to the eastern U.S., the Midwest, Canadian markets, Central Plainsstates, and the Gulf state region. The Detroit Region Aerotropolis provides global air access with nonstop service to morethan 160 destinations. Interstate highways reach from Canada to Mexico while connecting our region to both the Eastand West coasts. The Detroit, Toledo, and Windsor water ports are among the largest along the St. Lawrence Seaway.Aug. 1, 2011 – Jan. 31, 2012 10

The Detroit Region’s OpportunityTraining 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 theTDL sector.Capacity: We have half a billion total square feet of warehouse space, and there is room for growth in our distributioncenters, on our roads, rails, and waterways. We can accommodate more freight today without congestion and timedelays.Reliability: Our region has one of the lowest rates of weather-related cancellations in the country. We have thecapacity 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 significantlylower than competing regions like Columbus, Chicago, and Harrisburg.Aug. 1, 2011 – Jan. 31, 2012 11

The Detroit Region’s OpportunityAction PlanBased on private sector engagement, freight study results, and external outreach, we determined several areas forgrowth, classified into the four main asset categories: infrastructure, talent, industry, and location. Regional Supply Chain Action Plan Task Timing Asset Need Short Term Mid Term Long Term Intermodal capabilities Support DIFT project DIFT DIFT Advocate for transportationInfrastructure Road repair and maintenance funding New International Trade Crossing Continue bridge advocacy Establish training Railroad workforce Create career awareness programTalent Trucking workforce Create career awareness TDL workforce hub Launch virtual hub Raise awareness of regional supply chain value proposition Attract and Attract and Market outreach program and provide export support retain business retain businessIndustry Intermodal facilities Support DIFT project DIFT DIFT Climate-controlled warehouses Conduct a gap analysis Ocean carrier engagement Perform needs analysis Agricultural inspection capacity Perform gap analysis Border crossing consistency Establish root causesLocation Incorporate regional facts into Fact-based marketing effort awareness campaignAug. 1, 2011 – Jan. 31, 2012 12

The Detroit Region’s OpportunityNext StepsSHARING OUR VALUEThe value proposition will allow us to have consistent messaging and data and speak with a common voice. Ouraudience is broad and global. We need to market our assets and share success stories from companies located in ourregion who are already realizing the benefits of our regional value proposition. Site selectors are a key part of this broadaudience. Ensuring that site selectors are informed about our regional supply chain advantages is critical so our region isconsidered when making location decisions.Our value proposition will help develop consistent messaging and data to assist economic developers in speaking with acommon voice. Communicating our value proposition to economic developers at the city, county, and state level can helpensure that they have the information they need to include supply chain as part of the conversation when they areworking to attract and retain businesses. This information, coupled with economic developers’ in-depth understanding oftheir clients’ needs, will allow the messaging to companies to be tailored on a company-by-company basis. Stages of Freight EngagementAug. 1, 2011 – Jan. 31, 2012 13

The Detroit Region’s OpportunityImplementing the Action PlanOur 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 effortsto ensure completion and progress, we will apply our program management process, which includes appropriatetimelines, 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 forprogress. By sharing the value proposition and executing the action plan, we will achieve our common goals ofdeveloping a TDL cluster of excellence, which will lead to job creation and investment within our region.Freight Infrastructure StudyAdditionally, Translinked serves on SEMCOG’s Infrastructure Study Advisory Committee. SEMCOG is leading aninfrastructure study that will examine the region’s freight infrastructure from multiple perspectives. The project willassess the transportation network’s ability to supply current and future freight-intensive Southeast Michigan industrieswith efficient and reliable goods movement. Connecting freight projects to economic development will aid in makinginformed decisions about how to realize the best return on investment while programming limited transportation fundsand maximizing our transportation assets for their economic development potential. The Study Advisory Committee is aworking group that will provide expert insights that will be used to guide the course of the study, review the study’sprogress, and shape the study’s products and recommendations.Workstream 4Development of an education campaign to inform key stakeholders (collaborating with lead organization Michigan StateUniversity).As part of the Translinked initiative, the Detroit Regional Chamber seeks to inform and educate regional stakeholdersabout the opportunity to develop the TDL sector. The region already moves a tremendous amount of freight and includesan impressive array of assets. Working to raise awareness of the region’s potential and reach out to stakeholders forinput, the Detroit Regional Chamber attended or presented at gatherings of these important stakeholders to increaserecognition of the region’s supply chain value proposition. TMACOG Ohio Conference on Freight Consulate General of Canada in Detroit Consulate General of Japan in DetroitAug. 1, 2011 – Jan. 31, 2012 14

The Detroit Region’s Opportunity 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 CityAug. 1, 2011 – Jan. 31, 2012 15

The Detroit Region’s Opportunity 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 HallIn addition to the external outreach above, contacts were developed and articles pursued at logistics publications suchas 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 TranslinkedTwitter account is updated daily. Twitter followers have steadily increased over the last six months to nearly 1000followers:Aug. 1, 2011 – Jan. 31, 2012 16

The Detroit Region’s OpportunityTranslinked Twitter FollowersThe Translinked e-newsletter obtained more than 60 new subscribers in the past six months, increasing the total tonearly 1400 subscribers.Workstream 5Creation 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) aswell 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 thedevelopment of an economic development toolkit specific to the region’s supply chain assets. An RFP for an economicdevelopment 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 attractionand retention efforts. Businesses are concerned with the total landed cost of their freight. Access to a site containingcustomizable, co-branded supply chain fact sheets and collateral will give economic developers an important asset whenworking with their clients. This tool will allow economic developers to easily access common data and marketingmessages.Workstream 6Provision 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 oneexecutive management team member, the senior vice president of economic development. The support staff within theChamber tasked with assisting Translinked with their activities includes a full in-house marketing and design team, ateam 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 of20,000 members and affiliates, making the Detroit Regional Chamber one of the largest chambers of commerce in thecountry.Aug. 1, 2011 – Jan. 31, 2012 17

The Detroit Region’s OpportunitySIGNIFICANT EVENTS OR CONDITIONS THAT HAVE IMPACTED ABILITY TO MEETPROJECT OBJECTIVESThe funding for Translinked is scheduled to expire in September 2012. We would like to request a no cost five monthextension on the timeline of the grant due to the transition in staff in early 2011 and the time it has taken to coordinatewith various TDL collaboratives around the state. Additionally, we request shifting a portion of the original budgetedamounts from postage, office supplies, and printing into travel in order to better align the budget with the programneeds.As the statewide strategy develops and we align the Translinked grant deliverables with the state’s direction, brandingis determined, private sector engagement is built, and we execute the findings from the 75-day plan for business casedevelopment, Translinked plans to continue to do what is needed, including listening to the private sector and addressingtheir concerns through an action plan and marketing our assets. We would like to continue connecting people andserving as a source of information for TDL stakeholders across the board.ADDITIONAL INFORMATION THAT MAY BE OF INTERESTTranslinked BrandingIn 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 theinitiative.Border Wait Times AnalysisBorder crossing consistency was identified as an area of concern. The U.S. Customs and Border Protection websiteprovides wait times at international borders in real time, but it does not allow for a collection of data to be viewed overany 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 usthe 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 acomparison among border crossings.Statewide BrandingThe Detroit Regional Chamber will provide support and assistance in the state’s effort to brand and market the region’ssupply chain and logistics assets by providing staff from its marketing department to aid in the branding process.Aug. 1, 2011 – Jan. 31, 2012 18

The Detroit Region’s OpportunityAPPENDIX A: BENCHMARKINGBenchmarking: 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 forretention and expansion activities, they contract with the Columbus Chamber. Under those retention and expansionactivities falls the Columbus Region Logistics Council.The Columbus Region Logistics Council is made up of representatives from upward of 100 companies from whom aminimum 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 monthlyto 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 membersprovide 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 whereinternational trade processing activities can be carried out." From this study, KC SmartPort was born. KC SmartPort is anonprofit, investor-based economic development organization for the existing logistics industry in Kansas City and theattraction of logistics investment in the Kansas City region. KC SmartPort has very strong branding and marketing for theregion.Aug. 1, 2011 – Jan. 31, 2012 19

The Detroit Region’s OpportunityKC SmartPort is a blend of the public and private sector. The region crosses political boundaries, reaching both Missouriand 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. Theinvestment structure of KC SmartPort is multi-tiered, and lists of investors classified by investment level are available ontheir website. The KC SmartPort website provides many economic development benefits, including site selectioninformation, 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 entitiesinvolved, they all align their efforts to make sure they have the broadest reach while minimizing duplication andmaximizing resources.The Greater Halifax Partnership is a public-private partnership focused on economic development formed by businessleaders in 1995. It is funded by federal, provincial, and municipal governments and the private sector. The HalifaxGateway Council (HGC) was established in 2004. The HGC provides a forum for transportation stakeholders in the Halifaxregion to work collaboratively to improve the efficiency and competitiveness of the Halifax Gateway for the movement ofgoods and people. The HGC is managed by the Greater Halifax Partnership and led by a board of directors comprised ofrepresentatives from private and public sector organizations that rely on the Halifax transportation system. The Port ofHalifax oversees the brand “Halifax Gets It There” and a strong marketing campaign.Aug. 1, 2011 – Jan. 31, 2012 20

The Detroit Region’s OpportunityAPPENDIX 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. 10-HOUR TRUCK DRIVE-TIME AREA COMPARISON: DETROIT, MI, CHICAGO, IL, COLUMBUS, OH, AND HARRISBURG, PA Source: TranSystemsAug. 1, 2011 – Jan. 31, 2012 21

The Detroit Region’s OpportunityAPPENDIX C:The graph in the figure below compares freight shipped by truck, rail, water, and air by volume and value. 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 DataAug. 1, 2011 – Jan. 31, 2012 22

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Detroit Region Transportation, Distribution and Logistics Report on Progress

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