1. THE NEXUS OF ECONOMIC
DEVELOPMENT & LOGISTICS CHRISTOPHER STEELE
COO & President, North
America, Investment
Consulting Associates
Thursday, February 9 | 9:00 AM – 10:00 AM
CHRIS HARTMAN
CEO, Tsawwassen First
Nation Economic
Development Corp.
PAUL DERKSEN
Associate VP
Black Watch Property Ltd.
2. • Admitting what we do and do not know
• Learning about the process and drivers
• Finding the opportunities
Understanding The Economic Possibilities
Resulting from Freight
Global Management Advisory
3. Public officials do not have an adequate understanding of freight
operations or business drivers
Companies have dropped communities w/out plan for transportation
infrastructure, or policies did not adequately accommodate freight
75% of companies said they would recommend guidance in the form
of inventories of industrial sites; tax incentives for freight distribution
businesses; industrial rail access programs; and expedited permitting
processes.
Understanding and addressing this disconnect was the driving force
behind NCFRP Report 13
The Public and Private Sectors view the world through different lenses; neither sees the full picture
Public and Private Sector Perspectives
www.freightlocation.org <or> www.trb.org/Main/Blurbs/166143.aspx
Global Management Advisory
4. • Lack of regional cohesiveness
• Incomplete understanding of the role of freight facilities in the economy
• Incomplete understanding of the investment/location decision process and
drivers
• Misunderstanding of the community’s role in the global/regional/local
transportation network
Common Obstacles to Good Policy
Lack of coordination among planning, economic development, and
transportation agencies
Lack of public/private coordination
All impair corporate competitiveness
and regional economic opportunity
Global Management Advisory
5. Economic development contribution of freight facilities (to both freight and non-freight
activities)
Land use conflicts and pressures with competing uses and size of facilities
Coordination among economic development and planning agencies at local, regional and state
levels
Private sector typically drives site selection and participation is a requirement for success
Issues , Challenges and Opportunities
Public Sector MUST Understand Private Drivers in order to Develop
Effective Plans
Global Management Advisory
6. Freight Logistics Facility Types
FacilityType Subtypes &Variants Functions Example
Port Inland Port
ForeignTradeZone
Load Center
ModalTransfer – Goods or
Equipment
Entry, Exit, Customs
Staging
Container port
IntermodalTerminal ModalTransfer – Equipment
De/Consolidation
Pickup & Delivery
Rail COFC/COFC yard
Bulk orTransloadTerminal AutoTerminal ModalTransfer –Goods
De/Consolidation
Pickup & Delivery
Rail bulk transfer yard
DistributionCenter Warehouse
Cross-Dock
Staging & Storage
Unitizing & Processing
De/Consolidation
Retail or grocery distribution
facilities
Integrated LogisticsCenter “FreightVillage” Support Services
Utility Provision
Service & Economies
Industrial parks planned around
transport terminals
HubTerminal ClassificationYard IntramodalTransfer
Staging
De/Consolidation
National air hubs
CityTerminal DropYard
IndustrialYard
IntramodalTransfer
De/Consolidation
Pickup & Delivery
Local truck terminal
6
7. Locations fit in a network fulfilling a business process
Network optimizes business drivers to serve a market franchise
Location process is expression of network strategy
Origin(s) Destination(s)
Freight
Facility X
Freight Facilities site selection is overwhelmingly made by the private
sector
Facility Placement & Priorities
Global Management Advisory
8. The Location Process allows for progressive testing and narrowing of alternatives based on
business drivers
Final
Negotiations
and
Location
Selection
Planning and
Strategy
Cost
Modeling
Field Validation
Preferred and Alternate
Location(s)
Location
Screening
Network
Modeling
Defined Strategy
and Evaluation Criteria
Universe of
Location Candidates
Short-List of
Location Candidates
8
Location Process
Global Management Advisory
9. Site Selection Factors
by Facility Type
Factors vary
Importance changes
No one factor drives everything
Global Management Advisory
10. Key Lessons and Message for the Public Sector
Economic Development
• Different “key” factors are part of the decision making process for each
freight and logistics related industry sector
• Communities need to understand which facility types and functions match
their own community strengths and provide a competitive advantage
• Also need to determine where freight and logistics oriented prospects fit into
their business attraction program
• A freight “cluster” may be built around these facilities if carefully planned
10
11. ICA North America
2345 Washington St, Unit 201
Newton Lower Falls, MA 02462
United States
+1 617 314 6527
chris@ic-associates.com
www.ic-associates.com
ICA EMEA
Barbara Strozzilaan 201
1083 HN Amsterdam
The Netherlands
+31 20 217 0116
douglas@ic-associates.com
www.ic-associates.com