Presentations text content in Railroads & Economic Development:
Slide1
Railroads & Economic Development:
On Parallel Tracks?Page SiplonExecutive Director Georgia’s Center of Innovation for Logistics
Slide2Fueling 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
Slide3What is Logistics?
Who Cares?
What is Georgia’s Story?
Slide4A
…………………………………………………. 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
Slide8Slide9Employment Size
Slide10Slide11… still a tight race!
Slide12What is Logistics?
Who cares?
What is Georgia’s Story?
Slide13EVERY 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
Slide14DID 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.
Slide15Slide16Slide17What is Logistics?
Who cares?
What is Georgia’s Story?
Slide18Slide19Slide20Slide21Slide22RAIL TONS
Slide23So what really is Georgia’s rail impact?
Slide24Georgia’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
Slide25Georgia’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
Slide26Georgia’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
Slide27Georgia’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!
Slide28Georgia’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 …
Slide29Slide30Slide31Thank you!
Page Siplon
psiplon@georgia.org
Slide32BACKUP DETAIL SLIDES
Slide33Slide34Slide352007 Truck Flow
Slide36Slide37TRUCK TONS
Slide38RAIL TONS
Slide39Logistics Focused Education Resources
Slide402027Truck 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
Slide41Slide42Slide43Supply Chain Technology
Slide44Slide45Domestic 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
Railroads & Economic Development:
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