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Logistics Overview for North Carolina
- 1. Logistics Overview forNorth Carolina June 2, 2016 Charles HW Edwards
- 2. Transportation Outline • Evolving FreightLogistics 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 2
- 3. Transportation Evolving Freight LogisticsNetwork 3 New Interstates Widened turning basin Intermodal Hub
- 4. Transportation Why Logistics IsImportant 4 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 5 Seller TransportTerminal 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 KnowWhat We Are 6 • 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 7 • Oneof 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 8 +IMPACT representsIndirect & Induced totals. All figures represent 2013 IMPLAN data
- 9. Transportation Defining the SupplyChain • 14 North Carolina Industrial Sectors 9 Listed in order of Value Added (GDP Contribution)
- 10. Transportation NC’s Supply ChainLeading 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 10
- 11. Transportation NC’s Supply ChainLeading Sectors 11 • 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 12
- 13. Transportation Role of NCDepartment 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 13
- 14. Transportation We plan forfreight flows that never stop! 14