Railroads & Economic Development:

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. On Parallel Tracks?. Page Siplon. Executive Director . Georgia’s Center of Innovation for Logistics. Fueling Logistics Competitiveness. Resource:. - Access to . R&D. and technology leaders. ID: 618070 Download Presentation

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Railroads & Economic Development:




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Presentations text content in Railroads & Economic Development:

Slide1

Railroads & Economic Development:

On Parallel Tracks?Page SiplonExecutive Director Georgia’s Center of Innovation for Logistics

Slide2

Fueling Logistics Competitiveness

Resource:

- Access to

R&D

and technology leaders

- Analysis of data and innovative trends

- Cross-sector connections and collaboration

- Collective industry voice

Result:

Increased opportunities for industry growth and success

Slide3

What is Logistics?

Who Cares?

What is Georgia’s Story?

Slide4

A

…………………………………………………. B

What is Logistics? And what makes a “Logistics Industry”?

“…that part of Supply Chain Management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements.”

The line between disorder and order lies in logistics...

Sun

Tzu

Slide5

V

OLUME

V

ELOCITY

V

ISIBILITY

3

V

’s of Logistics

Slide6

… Every Supply

Chain

is

unique

Slide7

2008 total cost of logistics was

$1.4 trillion

, or 10.1% of the US GDP

Slide8

Slide9

Employment Size

Slide10

Slide11

… still a tight race!

Slide12

What is Logistics?

Who cares?

What is Georgia’s Story?

Slide13

EVERY YEAR RAILROADS IN THE USA MOVE:

1.7 million carloads of wheat, corn, soybeans, and other agricultural products…

1.5 million carloads of animal feed, beer, canned produce, corn syrup, flour…

2 million carloads of chemicals…

7.7 million carloads of coal (70% of total)

1.3 million carloads of lumber and paper products

Tens of thousands of carloads of scrap paper

12 million intermodal containers (60% of which consists of imports or exports)

70% of the automobiles built in the United States

1.7 million carloads of finished vehicles, parts, and accessories

…about 28 million total carloads, if you were curious

Slide14

DID YOU KNOW?

If all freight rail traffic were shifted to trucks, rail shippers would have to pay an additional

$69 billion

per year

Average

U.S. freight rail rates are half those in China and Japan

, and 75% below those in major European countries

In 2008, U.S. railroads moved a ton of freight an average of

457 miles per gallon

of fuel (up from

436

in 2007)

If 10% of the long-distance freight currently moving by truck moved by rail instead, fuel

savings would exceed one billion gallons

per year

In 2007, the average U.S. freight railroad employee earned wages of $68,200 and fringe benefits of $27,100 — for

total compensation of $95,300

.

In fiscal year 2008, some

600,000 beneficiaries

received more than

$10 billion

in retirement and survivor benefits from the Railroad Retirement System.

Slide15

Slide16

Slide17

What is Logistics?

Who cares?

What is Georgia’s Story?

Slide18

Slide19

Slide20

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Slide22

RAIL TONS

Slide23

So what really is Georgia’s rail impact?

Slide24

Georgia’s Rail Impact?

5,000+ miles of track

; origin of

24 million

tons; destination for

75 million

tons

21

short-lines &

2

Class-1 railroads

7,900 railroad employees

in the State

$481 million

in payroll every year

Top 10 rail state

by employment measures

Private

rail

industry

invests over $

215

million

in maintenance and

upkeep

17% of total

revenue goes back into infrastructure

Slide25

Georgia’s Rail Impact?

5,000+ miles of track

; origin of

24 million

tons; destination for

75 million

tons

21

short-lines &

2

Class-1 railroads

7,900 railroad employees

in the State

$481 million

in payroll every year

Top 10 rail state

by employment measures

Private

rail

industry

invests over $

215

million

in maintenance and

upkeep

17% of total

revenue goes back into infrastructure

True, but…

NO

Slide26

Georgia’s Rail Impact?

Rail is a critical component to

4,071 businesses

in Georgia

Directly

affecting 114,007 employees

Moves cargo

valued at $209 billion

every year, requiring

3.8 million movements

Slide27

Georgia’s Rail Impact?

Rail is a critical component to

4,071 businesses

in Georgia

Directly

affecting 114,007 employees

Moves cargo

valued at $209 billion

every year, requiring

3.8 million movements

NO

… but getting closer!

Slide28

Georgia’s Rail Impact?

Y’all are not in the rail business just because you like

trains …

Right?

You are in the rail business to move cargo for your customers.

So, we

also need

THEIR

stories and insight to complete this

impact message

.

So far, this only represents about 2/3 of the short-lines and the

“Class-1’s”

We need as many future growth & potential stories as possible

We need to have a complete story to tell for this to be effective

Your CUSTOMERS need to help us tell it

!

What/how/why have they expanded and grown because of rail in Georgia?

Why will they have or may shrink/close/move because of rail in Georgia?

This is a work in

progress …

Slide29

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Slide31

Thank you!

Page Siplon

psiplon@georgia.org

Slide32

BACKUP DETAIL SLIDES

Slide33

Slide34

Slide35

2007 Truck Flow

Slide36

Slide37

TRUCK TONS

Slide38

RAIL TONS

Slide39

Logistics Focused Education Resources

Slide40

2027Truck TonsTruck ValueTruck LoadsIntra-Georgia328,141,735$426,861,660,70535,374,065Export from Georgia200,086,705$541,481,764,40615,356,021Thru-Georgia278,237,377$1,067,694,758,48415,910,278Import into Georgia152,183,974$475,674,612,34113,929,517TOTAL: 958,649,791$2,511,712,795,93680,569,881

2007

Truck Tons

Truck

Value

Truck

Loads

Intra-Georgia

225,997,976

$

220,086,817,329

23,562,840

Export from Georgia

118,071,047

$

277,787,560,000

9,348,556

Thru-Georgia

190,323,924

$

663,233,710,000

10,734,561

Import

into Georgia

106,381,822

$

281,806,330,000

8,851,269

TOTAL:

640,774,768

$

1,442,914,400,000

52,497,226

Slide41

Slide42

Slide43

Supply Chain Technology

Slide44

Slide45

Domestic Transportation Management – (Non Asset Based): 3PLs providing value-added transportation management services dealing with shipments originating in and destined to North American points. Usually performed in conjunction with freight brokerage, often contractual. Domestic Transportation Management – (Asset Based): 3PLs providing dedicated contract carriage services supplying tractors, drivers and management. Trailers are normally included, contract terms are 1-7 years. Primarily dedicated contract carriage.International Transportation Management – (Non Asset Based): 3PLs providing value-added international transportation management services dealing with shipments originating in or destined to North American points usually performed in conjunction with freight forwarding, often contractual. Value-Added Warehousing and Distribution – (Asset Based): 3PLs normally providing long term contract warehousing or distribution center operations with a host of value-added services.

Four Main 3PL Segments

(defined)

Slide46


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