Presentation given by Charles H. W. Edwards at the I-89 Transportation meeting.

1. Logistics Overview for North Carolina
June 2, 2016
Charles HW Edwards

2. Transportation
Outline
• Evolving Freight Logistics Network
• Why Logistics Is Important
• We Now Know Who We Are – North Carolina’s
Supply Chain
• New Challenges Everyday
•Role of NC Department of Transportation
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3. Transportation
Evolving Freight Logistics Network
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New Interstates
Widened
turning basin
Intermodal Hub

4. Transportation
Why Logistics Is Important
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Each North Carolinian generates / consumes 20 tons of
freight per year
* 1 tractor-trailer (TL) load per resident per year = 9+
million TL per year
• Can’t continue to expand and build roads
• Need to meet different requirements in different
regions
• Optimize existing transport network and services

5. Transportation
Logistics Flows
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Seller Transport Terminal Customs Customs Terminal Transport Consignee
Risks
Costs
Port /
Airport /
Truck
Terminal /
Rail
Terminal
Port /
Airport /
Truck
Terminal /
Rail
Terminal
Clearing Agent / Freight ForwarderFreight Forwarder
Insurance Agents / Banks Banks
Information
Financial

6. Transportation
We Now Know What We Are
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• Published February 2016
• Prepared by Supply Chain
Resources Cooperative – NC State
• MHI / NC Center for Global Logistics
• Quantify the economic impact of the
supply chain
• Identify key connections, trends &
context
• Provide perspective for planning,
investment & policy
http://www.mhlroadmap.org/downloads/NCSupplyChainIndustry.pdf

7. Transportation
Summary Findings
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• One of every 4 employed
• Present in every county
• Traditional industries important
• Average annual labor income: $67,780
- 156% of NC average annual wage of
$43,280
- 52% more than US average annual
wage of $44,888
• Total paid state taxes equal about 58%
from all sources (2013)
A gauge for economic impact

8. Transportation
Key Findings
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+IMPACT represents Indirect & Induced totals. All figures represent
2013 IMPLAN data

9. Transportation
Defining the Supply Chain
• 14 North Carolina Industrial Sectors
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Listed in order of Value Added (GDP Contribution)

10. Transportation
NC’s Supply Chain Leading Sectors
Rank Employment GDP Contribution State Taxes Paid
1 Transportation,
Distribution and
Logistics
Pharmaceuticals, Biologics
and Medical Products
Tobacco & Foodstuffs
2 Industrial Machinery
and Transportation
Equipment
Chemical Manufacturing Transportation, Distribution
and Logistics
3 Textiles Industrial Machinery and
Transportation Equipment
Industrial Machinery and
Transportation Equipment
4 Chemical
Manufacturing
Tobacco & Foodstuffs Pharmaceuticals, Biologics
and Medical Products
5 Household Goods
and Furniture
Transportation, Distribution
and Logistics
Chemical Manufacturing
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11. Transportation
NC’s Supply Chain Leading Sectors
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• Transportation, Distribution &
Logistics:
- 105K+ workers - more than 2.5% of the
state’s total workforce
- Nearly $5.7B in Labor Income
• Pharmaceutical, Biologics & Medical
Products:
- GDP contribution of more than $19.4B
• Industrial Machinery &
Transportation Equipment:
- Direct Output of nearly $38.4B
• Tobacco & Foodstuffs:
- $5.1B paid in state & local Tax

12. Transportation
New Challenges Everyday
• General
• New economic paradigm
• Anti-globalization sentiment
• Circular economy and logistics
• Specific
• e-Commerce
• Internet of Things
• Modal shift and selection
• Truck driver shortage – FMCSA / HOS rules
• Class 1 railroads’ new focus / strategy
• Chief supply chain manager
• Disruptions and delays
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13. Transportation
Role of NC Department of Transportation
• Focus – what does it really take to move freight?
• Optimized Infrastructure – Meet needs of freight flows
• ‘The’ key economic development factor
• Shift freight to rail
• Urban and rural freight corridors / Blue shield
• Intersection geometry for trucks
• Multi-state perspective
• Truck driver rest areas
• Flexible Infrastructure – Accommodate and employ new technologies
• Autonomous vehicles
• Internet of Things
• Public transit for last mile pick-up / delivery operations
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14. Transportation
We plan for freight flows that never stop!
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