Thoughts on Freight Logistics in the SoutheastBruce Lambert

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What Drink Can’t You Live Without?• When do you expect to get this?• Where do you expect to get this?• How much are you willing to pay in time or money

to get it?• What are your expectations?

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Freight mattersDaily – • 48.3 million tons of

goods worth $46 billion

Annually – • 57 tons per person

Annually –• 9% of economy is

spent on logistics 3

Buyer Expectations Are Changing Retail Logistics

4Wow!! What a bargain, and I will

get it tomorrow!

Wow!! The Little Orphan

Annie Decoder Ring Finally

Arrived!!

Retailers Changing Their Domestic Supply Chains• Locate Closer to

Customer• More Integrated

Supply Chains• Manage

Variability• Transloading• Reduce

unreliability5

Automated Vehicles• Preparing Trip

• Driver Assisted Vehicles• Route Planning

• During Trip• Electronic Notifications of

parking, spacing, etc.• Electronic Logs• Platooning• Routing Assistance

• Last Mile• Scheduling at Ports• Geofencing• Truck Parking Management

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Bottlenecks and Through Movements

0%

25%

50%

Through Ton-Miles as Share of Re-gional Truck Traf-fic

How Do Businesses Respond to Congestion? • Move away from distribution facilities away from

urban centers• Locate in areas that have access to multiple

modes• Align operations to minimize congestion and

manage fuel costs• Site Selection magazine – 2nd tier cities doing well

for attracting new businesses

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Operations - Modern Push Supply Chain Framework

Supplier Supplier Supplier

Distributor

Customer

Manufacturer

Supplier Supplier Supplier Supplier

3PL

MarketerDesigner

Point-of-sale dataRecycled products Inventory

InformationSystem

Transport System

“PULL”METHODS OFCONTROL(relative importance)

“What is the Message”Its about me… Really?

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KY – top 200 firms - Intermodal facilities

Yellow – Top 200 FirmGreen – Intermodal Facility

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• What type of facility?• Trackage and Terminals• Develop densities

• Drayage and equipment issues• Domestic and international• Shippers bear costs?

• Don’t cannibalize other facilities

Logistics Parks and Economic Development

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Terminal Operations

Transportation Utilities Workforce Development

Business Climate Incentives

Cargo Density Business Clusters

Transportation services Intermediaries

Priv

ate

Sect

orPu

blic

Sec

tor

Who is Responsible for What?Vi

sion

Educ

atio

nPa

rtner

ship

s

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http://www.wired.com/magazine/2011/05/ff_jobsi85/

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Urban Freight Issues

See any trucks, railcars, barges or planes?People need goods!

Does Understanding The Big Picture Matter?• Will imports/exports go up or down in 10 years?• Where will people live in twenty years?• Where will the state see more truck traffic?• What if we go to heavier/longer trucks?• What if the State attracts more manufacturing,

energy jobs?• Truck parking issues? • What is my neighbor doing?

• What will this change and where?

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What are you drinking next?

• It came from somewhere

• It was packaged ready for your needs

• It was available when you wanted it

• It should met your expectations concerning price and quality

• Did It generate any jobs in your area? 18

Bruce LambertExecutive DirectorInstitute for Trade and Transportation Studies540-455-9882bruce@ittsresearch.org

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