091110 mov odot kickoff

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

MOV Intermodal Study MOV Intermodal Study

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

AgendaAgenda1.1. Background Background –– US Inland WaterwaysUS Inland Waterways2.2. River Ports and Economic DevelopmentRiver Ports and Economic Development3.3. ContainerContainer--onon--Barge PotentialBarge Potential4.4. MOV Intermodal Study MOV Intermodal Study –– Next StepsNext Steps

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Birmingham

New Orleans Mobile

MemphisLittle Rock Chattanooga

Tulsa

St. Louis

Chicago

Louisville

Pittsburgh

Minneapolis

Cleveland

Kansas City

Nashville

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Traditional barged cargoesTraditional barged cargoes

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Units Needed to Carry Approximately1,750 Short Tons of Dry Cargo

Full Credit for Environmental Comparison goes to

US DOT MARADNational Waterways FoundationTexas Transportation Institute

j-kruse@ttimail.tamu.edu

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Units Needed to Carry Approximately27,500 BBL of Liquid Cargo

Full Credit for Environmental Comparison goes to US DOT MARADNational Waterways FoundationTexas Transportation Institute

j-kruse@ttimail.tamu.edu

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Liquid Cargo CapacityFull Credit for Environmental Comparison goes to US DOT MARADNational Waterways FoundationTexas Transportation Institute

j-kruse@ttimail.tamu.edu

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Dry Cargo CapacityFull Credit for Environmental Comparison goes to US DOT MARADNational Waterways FoundationTexas Transportation Institute

j-kruse@ttimail.tamu.edu

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Emissions: Grams per TonEmissions: Grams per Ton--MileMile

Full Credit for Environmental Comparison goes to US DOT MARADNational Waterways FoundationTexas Transportation Institute

j-kruse@ttimail.tamu.edu

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Fuel EfficiencyFuel Efficiency-- TonTon--Miles/GalMiles/Gal

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Based on rate per ton-mile

Ratio to Inland Marine Injuries

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Based on rate per ton-mile

Ratio to Inland Marine Fatalities

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Rate of Spills in Gal/M Ton-Miles

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Government Policy Maker InterestsGovernment Policy Maker Interests

relieve congestionrelieve congestion

conserve energyconserve energy

highway capacity & maintenance highway capacity & maintenance

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Trends and Background InfoTrends and Background InfoContainer ships getting largerContainer ships getting larger

19701970’’ss 1,700 1,700 TEUsTEUs (10 wide)(10 wide)19801980’’ss 2,300 2,300 TEUsTEUs19901990’’ss 4,800 4,800 TEUsTEUs ((PanamaxPanamax))20002000’’ss 8,000 8,000 TEUsTEUs (17 wide)(17 wide)20102010’’ss 13,000 13,000 TEUsTEUs (21 wide)(21 wide)

US Container PortsUS Container Ports63% West Coast63% West Coast32% East Coast32% East Coast5% Gulf Coast5% Gulf Coast

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Birmingham

New Orleans Mobile

MemphisLittle Rock Chattanooga

Tulsa

St. Louis

Chicago

Louisville

Pittsburgh

Minneapolis

Cleveland

Kansas City

Nashville

US Container PortsUS Container Ports63% West Coast63% West Coast32% East Coast32% East Coast5% Gulf Coast5% Gulf Coast

••Most US container ports do not Most US container ports do not connect to rivers, so containers connect to rivers, so containers move inland via truck or rail.move inland via truck or rail.

••Containers arriving New Orleans Containers arriving New Orleans and Mobile can move to US and Mobile can move to US heartland via rail, truck or barge.heartland via rail, truck or barge.

••Inland waterway service Inland waterway service providers must understand the providers must understand the needs of the global container needs of the global container shipping community.shipping community.

••Global shippers must understand Global shippers must understand the COB option.the COB option.

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Three Reasons for Realistic Optimism Three Reasons for Realistic Optimism Regarding Gulf Coast Container TradeRegarding Gulf Coast Container Trade

•• Congestion at East and West Coast portsCongestion at East and West Coast ports•• Significant Improvements on Gulf Coast Significant Improvements on Gulf Coast •• Expanded Panama Canal in 2014Expanded Panama Canal in 2014

Opportunities for COB are Opportunities for COB are linked to growth of container traffic linked to growth of container traffic through Gulf Coast Ports.through Gulf Coast Ports.

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Traditional business practices may work for traditional barged Traditional business practices may work for traditional barged cargoes, butcargoes, but……

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

……COB business practices will need to be compatible COB business practices will need to be compatible with container shipper expectations.with container shipper expectations.

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Birmingham

New Orleans Mobile

MemphisLittle Rock Chattanooga

Tulsa

St. Louis

Chicago

Louisville

Pittsburgh

Minneapolis

Cleveland

Kansas City

Nashville

COB

Reliability is vital.

Infrastructure is not the foremost challenge.

Understanding customer needs and global logistics business practices is the challenge!

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

To make COB a reality, must provide real cost To make COB a reality, must provide real cost savings and returns to private sectorsavings and returns to private sector

To gain government support, must demonstrate To gain government support, must demonstrate benefits to society and environmentbenefits to society and environment

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Scope of Work for the Scope of Work for the MOV Intermodal ProjectMOV Intermodal Project

Characterize existing freight movements, general container shippCharacterize existing freight movements, general container shipping ing patterns, volumes, rates, as well as area economic basepatterns, volumes, rates, as well as area economic base

General inventory of freight facilitiesGeneral inventory of freight facilities

Three container flow scenariosThree container flow scenarios

Apply COB lessonsApply COB lessons--learned elsewherelearned elsewhere

Describe fundamental scenario for successDescribe fundamental scenario for success

Chart path to get thereChart path to get there

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Study Area CountiesStudy Area Counties

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Study Area and RoadwaysStudy Area and Roadways

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Study Area RailroadsStudy Area Railroads

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Intermodal Rail Transfer PointsIntermodal Rail Transfer Points(Including Small Private Terminals)(Including Small Private Terminals)

Source: Bureau of Transportation Statistics. National Transportation Atlas Database. 2009.

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Nearest Intermodal Rail Transfer Nearest Intermodal Rail Transfer Points Points

(Public Truck Rail or Port/Rail Facilities)(Public Truck Rail or Port/Rail Facilities)

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Top 20 Intermodal Seaports:Top 20 Intermodal Seaports:Markers are Proportional to 2008 Markers are Proportional to 2008 TEUsTEUs

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Population DensityPopulation Density

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

Earnings from Manufacture of Plastics/Rubber by CountyEarnings from Manufacture of Plastics/Rubber by County(Shown in Quartiles)(Shown in Quartiles)

Note: Grey areas indicate data not disclosedNote: Grey areas indicate data not disclosed

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

We need your helpWe need your help

ODOT November 10, 2009 ODOT November 10, 2009 WR Coles and AssociatesWR Coles and Associates

This meeting and subsequent networking are This meeting and subsequent networking are important steps in the project.important steps in the project.

Thank you!Thank you!

Contact information Contact information --Ron ColesRon Coles615 615 –– 594 594 -- 15761576ron@wrcoles.comron@wrcoles.com