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Talking Freight

Tying Freight to Economic Development.

February 18, 2004 Talking Freight Transcript

LADIES AND GENTLEMEN, THANK YOU VERY MUCH FOR STANDING BY AND WELCOME TO THE TALKING FREIGHT SEMINAR, TYING FREIGHT TO ECONOMIC DEVELOPMENT CONFERENCE CALL. DURING THE PRESENTATION, ALL PARTICIPANTS WILL BE IN A LISTEN ONLY MODE. AFTERWARDS, WE WILL CONDUCT A QUESTION AND ANSWER SESSION. IF YOU HAVE A QUESTION AT THAT TIME, PLEASE PRESS THE 1 FOLLOWED BY THE 4 ON YOUR TELEPHONE. PLEASE NOTE, AT THAT TIME, YOUR LINE WILL BE BRIEFLY ACCESSED FROM THE CONFERENCE TO OBTAIN PARTICIPANT INFORMATION. ALSO AS A REMINDER, TODAY'S CONFERENCE IS BEING RECORDED ON WEDNESDAY, FEBRUARY 18, 2004. I NOW HAVE THE PLEASURE OF TURNING THE CONFERENCE OVER TO JENNIFER SEPLOW. PLEASE GO AHEAD, MA'AM.


GOOD AFTERNOON --


GOOD AFTERNOON OR GOOD MORNING TO THOSE OF YOU ON THE WEST TO THE TALKING FREIGHT SEMINAR SERIES. MY NAME IS JENNIFER SEPLOW AND I WILL MODERATE TODAY'S SEMINAR. TODAY'S TOPIC IS TYING FREIGHT TO ECONOMIC DEVELOPMENT. PLEASE BE ADVISED THAT TODAY'S SEMINAR IS BEING RECORDED. TODAY WE HAVE THREE SPEAKERS, GLEN WEISBROD OF THE ECONOMIC DEVELOPMENT RESEARCH GROUP, MARTIN WEISS OF FHWA, AND MATTHEW PREISLER OF WILBUR SMITH ASSOCIATES.


GLEN WEISBROD IS THE PRESIDENT OF ECONOMIC DEVELOPMENT RESEARCH GROUP. HE IS THE CHAIR OF THE TRB COMMITTEE ON TRANSPORTATION AND ECONOMIC DEVELOPMENT, AND WAS FORMERLY ON THE BOARD OF DIRECTORS OF WHAT IS NOW THE INTERNATIONAL ECONOMIC DEVELOPMENT COUNCIL. FOR THE LAST 25 YEARS, HE HAS WORKED ON THE RELATIONSHIP OF ECONOMIC DEVELOPMENT, FREIGHT AND TRANSPORTATION. THIS INCLUDES STUDIES OF GLOBALIZATION AND TRADE, AND INTERNATIONAL WORKSHOPS ON THE CONNECTION OF ECONOMIC GROWTH AND TRANSPORTATION INVESTMENT IN THE UK, NETHERLANDS, AUSTRALIA, CANADA AND JAPAN. FOR TRB,HE AUTHORED THE NCHRP SYNTHESIS OF PRACTICE ON METHODS FOR ASSESSING ECONOMIC DEVELOPMENT IMPACTS OF TRANSPORTATION, AND HE IS CURRENTLY CO-PRINCIPAL INVESTIGATOR OF AN NCHRP STUDY ON INTEGRATING RAIL FREIGHT AND HIGHWAY PLANNING. HE HAS CONDUCTED STUDIES OF AIR, MARINE, RAIL AND ROAD TRANSPORTATION AND THEIR LINKS TO ECONOMIC DEVELOPMENT FOR USDOT, THE APPALACHIAN REGIONAL COMMISSION, AND FOR STATE, PROVINCE AND REGIONAL AGENCIES AROUND THE US AND CANADA. MR. WEISBROD WAS FORMERLY SR. VICE PRESIDENT OF CAMBRIDGE SYSTEMATICS, INC. AND DIRECTOR OF THE BOSTON OFFICE OF HAGLER BAILLY CONSULTING. THE AUTHOR OF OVER 30 PUBLISHED ARTICLES, HE HOLDS AN MCP IN URBAN PLANNING FROM MIT, AN MS IN CIVIL ENGINEERING (TRANSPORTATION) FROM MIT, AND A BA IN ECONOMICS FROM BRANDEIS UNIVERSITY.


MARTIN WEISS ATTENDED THE UNIVERSITIES OF WISCONSIN AND NEVADA. HE HAS WORKED IN THE FHWA SINCE 1974 SERVING IN FIELD AND IN HEADQUARTERS OFFICES IN BOTH PROGRAM MANAGEMENT AND VARIOUS TECHNICAL SPECIALTIES. SINCE 1993, HE HAS MANAGED A NUMBER OF ACTIVITIES IN THE AREAS OF FINANCIAL PLANNING, STATEWIDE PLANNING, MULTISTATE CORRIDOR ANALYSIS, ECONOMIC DEVELOPMENT, DATABASE MANAGEMENT, VIDEOTAPE PRODUCTION, TRAINING COURSES, WRITING REGULATIONS, PRODUCING REPORTS FOR CONGRESS AND IMPLEMENTING DISCRETIONARY GRANT PROGRAMS. ONE OF HIS MOST RECENT ASSIGNMENTS IS AS PRINCIPAL PROGRAM OFFICIAL FOR THE NATIONAL CORRIDOR PLANNING AND DEVELOPMENT AND COORDINATED BORDER CROSSING DISCRETIONARY PROGRAMS, FHWA HIGHEST DOLLAR VOLUME DISCRETIONARY PROGRAM. ANOTHER IS AS PRINCIPAL PROGRAM OFFICIAL FOR THE ECONOMIC DEVELOPMENT HIGHWAYS INITIATIVE, A CONGRESSIONALLY DIRECTED CONTRACT PROGRAM. HE IS ALSO LEADER OF THE NATIONAL SYSTEMS AND ECONOMIC DEVELOPMENT TEAM IN THE OFFICE OF INTERSTATE AND BORDER PLANNING.


MATTHEW PREISLER IS AN AIR CARGO PLANNER AND PROJECT MANAGER WITH WILBUR SMITH ASSOCIATES CURRENTLY BASED IN CINCINNATI, OHIO. MR. PREISLER HAS APPLIED HIS AIR CARGO OPERATIONS EXPERTISE TO SEVERAL WSA LED PROJECTS, INCLUDING AIRPORT MASTER PLANS, STATEWIDE AVIATION SYSTEM PLANS, AIRPORT SPECIFIC AIR CARGO MARKET ANALYSIS, AND MULTI-MODAL AND REGIONAL COMMODITY FLOW PROJECTS. SPECIFIC CONTRIBUTIONS HAVE INCLUDED COMMODITY FLOW ANALYSIS, AIR CARGO FORECASTS, FACILITY REQUIREMENTS, DETAILED INDUSTRY OVERVIEWS, AND INDUSTRY LEADER INTERVIEWS/FOCUS GROUPS. PRIOR TO HIS EMPLOYMENT WITH WILBUR SMITH ASSOCIATES, MR. PREISLER WORKED FOR DHL WORLDWIDE EXPRESS IN THE NETWORK PLANNING GROUP AS THE ROUTE AND COST ANALYST FOR THE US WEST COAST AND ASIA. FUNCTIONS PERFORMED AT DHL WORLDWIDE EXPRESS INCLUDED NATIONAL, REGIONAL AND LOCAL MARKET FINANCIAL FEASIBILITY STUDIES, MARKET GROWTH FORECASTS, REVENUE IMPACTS, COST ANALYSIS (INCLUDING OPPORTUNITY COST IDENTIFICATION) AND ROUTE IMPLEMENTATION COORDINATION. MR. PREISLER HOLDS AN MBA WITH CONCENTRATIONS IN MARKETING AND INTERNATIONAL BUSINESS, A BS IN AVIATION MANAGEMENT AND IS A FAA CERTIFIED COMMERCIAL PILOT.


THE POWERPOINT PRESENTATIONS FROM THIS SEMINAR ARE NOT CURRENTLY AVAILABLE ON THE WEB SITE AS THEY USUALLY ARE. I WILL SEND AN EMAIL WHEN THEY BECOME AVAILABLE.

I'D LIKE TO GO OVER A FEW LOGISTICAL DETAILS PRIOR TO STARTING THE SEMINAR. TODAY'S SEMINAR WILL LAST 90 MINUTES, WITH 60 MINUTES ALLOCATED FOR THE SPEAKERS, AND THE FINAL 30 MINUTES FOR AUDIENCE QUESTION AND ANSWER. THE OPERATOR WILL GIVE YOU INSTRUCTIONS ON HOW TO ASK A QUESTION OVER THE PHONE DURING THE Q&A PERIOD. HOWEVER, IF DURING THE PRESENTATIONS YOU THINK OF A QUESTION, YOU CAN TYPE IT INTO THE SMALLER TEXT BOX UNDERNEATH THE CHAT AREA ON THE LOWER RIGHT SIDE OF YOUR SCREEN. PLEASE MAKE SURE YOU ARE TYPING IN THE THIN TEXT BOX AND NOT THE LARGE WHITE AREA. PRESENTERS WILL BE UNABLE TO ANSWER YOUR QUESTIONS DURING THEIR PRESENTATIONS, BUT I WILL USE SOME OF THE QUESTIONS TYPED INTO THE CHAT BOX TO START OFF THE QUESTION AND ANSWER SESSION IN THE LAST HALF HOUR OF THE SEMINAR. THOSE QUESTIONS THAT ARE NOT ANSWERED WILL BE POSTED TO THE FREIGHT PLANNING LISTSERV. THE LISTSERV IS AN EMAIL LIST AND IS A GREAT FORUM FOR THE DISTRIBUTION OF INFORMATION AND A PLACE WHERE YOU CAN POST QUESTIONS TO FIND OUT WHAT OTHER SUBSCRIBERS HAVE LEARNED IN THE AREA OF FREIGHT PLANNING. IF YOU HAVE NOT ALREADY JOINED THE LISTSERV, THE WEB ADDRESS AT WHICH YOU CAN REGISTER IS PROVIDED ON THE SLIDE ON YOUR SCREEN.

IF AT ANYTIME YOU WOULD LIKE TO ZOOM IN ON THE SLIDE THAT IS SHOWING ON YOUR SCREEN, YOU CAN CLICK ON THE ZOOM ICON AT THE TOP OF YOUR SCREEN. IT LOOKS LIKE A MAGNIFYING GLASS WITH A PLUS SIGN IN IT.

FINALLY, I WOULD LIKE TO REMIND YOU THAT THIS SESSION IS BEING RECORDED. A FILE CONTAINING THE AUDIO AND THE VISUAL PORTION OF THIS SEMINAR WILL BE POSTED TO THE TALKING FREIGHT WEB SITE IN THE NEXT DAY OR SO. TO ACCESS THE RECORDED SEMINAR, PLEASE VISIT TALKINGFREIGHT.WEBEX.COM AND CLICK ON THE "RECORDED EVENTS" LINK ON THE LEFT SIDE OF THE PAGE AND THEN CHOOSE THE SESSION YOU'D LIKE TO VIEW. DUE TO THE SIZE OF THE FILE, RECORDED FILES ARE AVAILABLE FOR VIEWING/LISTENING PURPOSES ONLY AND CANNOT BE SAVED TO YOUR OWN COMPUTER. WE ENCOURAGE YOU TO DIRECT OTHERS IN YOUR OFFICE WHO MAY HAVE NOT BEEN ABLE TO ATTEND THIS SEMINAR TO ACCESS THE RECORDED SEMINAR.

WE WILL NOW GIVE MORE PEOPLE A CHANCE TO JOIN IN AND THEN WILLL START AT 1:00 WITH THE PRESENTATION OF GLEN WEISBROD.

IT'S NOW ABOUT 1:00. WELCOME TO THE TALKING FREIGHT SEMINAR ON TYING FREIGHT TO ECONOMIC DEVELOPMENT. WE WILL START WITH GLEN WEISBROD OF THE ECONOMIC DEVELOPMENT RESEARCH GROUP. IF YOU WILL HANG ON JUST A MINUTE, I WILL GET THAT SET UP.


OKAY, GLEN, YOU CAN GO AHEAD WHENEVER YOU ARE READY.


GLEN WEISBROD:

ALL RIGHT. THANK YOU, EVERYONE. I AM GOING TO GIVE AN OVERVIEW OF SOME OF THE INTERRELATIONSHIP OF FREIGHT AND ECONOMIC DEVELOPMENT AND OFFER SOME EXAMPLES ILLUSTRATING IT. THERE ARE THREE THINGS I AM GOING TO BE COVERING. THE FIRST IS THE CONTEXT IN WHICH THERE IS A CHANGING ENVIRONMENT FOR ECONOMIC DEVELOPMENT AND TRANSPORTATION. SECONDLY, TALKING ABOUT HOW ECONOMIC DEVELOPMENT CREATES DEMANDS FOR FREIGHT. AND THIRD IS TALKING ABOUT HOW FREIGHT INFRASTRUCTURE ALSO CHANGES OPPORTUNITIES FOR ECONOMIC DEVELOPMENT. THIS FIRST FIRST GRAPH IS ACTUALLY MISLABELED. THE TOP LINE IS THE VALUE OF MANUFACTURING SHIPMENTS OVERTIME AND REAL INFLATION-ADJUSTED DOLLARS. THE SECOND ONE IS FREIGHT TON MILES AND THE BOTTOM ONE IS POPULATION CHANGE. THE POINT OF THIS GRAPH IS THAT WE HEAR A LOT ABOUT LOSS OF MANUFACTURING JOBS MOVING ELSEWHERE IN THE GROWTH -- AND THE GROWTH OF THE SERVICE ECONOMY. BUT WHAT YOU ARE SEEING IN FACT IS AN INCREASE IN FREIGHT TON MILES, DOTTED LINE GROWING FASTER THAN OUR POPULATION. THE VALUE OF MANUFACTURING SHIPMENTS AND GROWING EVEN FASTER, SO SO FREIGHT IS FAR FROM GOING AWAY, BECOMING EVEN MORE IMPORTANT TO OUR NATIONAL ECONOMY. THERE ARE OTHER ASPECTS OF THE CHANGE IN FREIGHT PATTERNS, WE ARE HAVING TRENDS TOWARDS THE HIGHER VALUE TO WEIGHT RATIO IN WHAT IS BEING SHIPPED, A HIGHER TIME SENSITIVITY, A FRACTION OF SHIPMENTS THAT ARE VERY TIME -- SENSITIVE, VERY FAST GROWTH OF OVERNIGHT AND SMALL PACKAGE ARE DONE IN VANS NOT COUNTED BY OUR TRUCK COUNTS AND NOT EVEN COVERED BY OUR FLOW INFORMATION. AS WITH GLOBALIZATION AND INCREASING EXPORTS, WHERE THERE IS MORE AND MORE PRESSURE ON AIR AND MARINE PORTS, WHICH IS IMPORTANT BECAUSE EVERYTHING THAT COMES TO AND FROM AIR AND MARINE PORTS TRAVELS BY GROUND, BY RAIL OR HIGHWAYS. AND THERE IS ALSO CHANGES BECAUSE OF THE CONSOLIDATION OF CARRIERS, MANY OF THE RAILROADS AND SOME OF THE TRUCKING COMPANIES ARE CHANGING TO PRICING THAT IS FAVORING FULL TRUCKS AND FULL RAIL CARS FOR THE FULL LENGTH OF THE JOURNEY WHICH VERY MUCH AFFECTS PRICING AND COSTS TO AND FROM INTERMEDIATE AREAS, SO THESE ARE ALL ALL TRENDS THAT ARE CHANGING THE RELATIONSHIP BETWEEN THE ECONOMY AND TRANSPORTATION FLOWS. TO UNDERSTAND HOW THEY INTERRELATE, TO UNDERSTAND THE POSITIVE, WE START WITH A NEGATIVE. LET'S TALK ABOUT CONGESTION, URBAN CONGESTION OR CONGESTION ON INTERCITY ROUTES? WELL, AS AREAS GET CONGESTED, WE SEE IN A NUMBER OF CITIES THE OVERNIGHT DELIVERY SERVICES, THE LAST PICKUP OF THE DAY BECOMES EARLIER, AND THE DRIVERS ARE ABLE TO MAKE FEWER DELIVERIES PER DAY. MANUFACTURERS, IN MANY AREAS CONGESTED AREAS ARE REPORTING OVERTIME BY STAFF AT LOADING STOCKS WAITING FOR TRUCKS THAT COME LATE. EVEN FOR CHRON MIXER TRUCKS, THE DELIVERY AREA, THAT THEY CAN DO, BEFORE THE CONCRETE HARDENS AND SPOILS BECOMES REDUCED, AND FOR SHIPPERS GOING TO AND FROM VARIOUS PORTS, THEY HAVE TO WORRY ABOUT MISSING THE DELIVERY DEADLINE, AT WHICH POINT THE GATE MAY BE CLOSED FOR THE DAY. MEANING, IF THEY ARE NOT SURE ABOUT RELIABILITY, THEY HAVE TO PAD THEIR SCHEDULE, SO IF YOU HAVE A 1 IN 10 CHANCE OF BEING HALF HOUR LATE, YOU MAY END UP MAKING YOUR SCHEDULE ALWAYS ALLOW FOR AN EXTRA HALF HOUR, AND CLEARLY THERE IS -- ALLOWED THERE. NOW, ALL OF THESE ARE COST RELATED AT TIMES, AND ALTHOUGH THERE ARE SOME ISSUES ABOUT THE TRUCK VALUE OF TIME AND HOW WE CALCULATED, TIME IS INCLUDED IN TRANSPORTATION EFFICIENCY ANALYSIS. HOWEVER, THERE IS EVEN MORE THAN JUST COST INVOLVED THERE ARE ARE ADDITIONAL ECONOMIC ISSUES BECAUSE THINGS LIKE GROWTH, HOW BROAD IS THE SUPPLIERS, LABOR MARKET, ACCESS TO DIVERSITY AND SKILLED LABOR, ACCESS TO SIZE, ECONOMIES OF SCALE IN SERVING DIFFERENT MARKETS, AND DIFFERENT PROVIDERS WITH DIFFERENT LEVELS OF RELIABILITY AND COST. CONGESTION AFFECTS ALL OF THESE FACTORS, GROWTH, ALL OF WHICH ARE IN ADDITION TO THE TRAVEL COST OF DELAY. . SO, SUMMING IT ALL UP, LOOKING AT URBAN FREIGHT, WE HAVE HIGHER COST FROM CONGESTION TO DELIVER TO MARKETS, REDUCED SCHEDULED RELIABILITY, WHICH, YOU COULD BE BUT USUALLY IS NOT INCLUDED IN OUR VALUE OF TIME CALCULATIONS AND REDUCED ACCESS TO MARKETS AND SCALE OF ECONOMIES WHICH DEFINITELY IS NOT INCLUDED NORMALLY IN TRANSPORTATION COST BENEFIT. FROM THE POINT OF VIEW OF ECONOMIC DEVELOPERS, ALL OF THIS SERVES TO DO SAME EFFECT ON ATTRACTING GROWING BUSINESS, REDUCES THE SIZE OF THE MARKET AREA WHICH CAN BE SERVED BY A BUSINESS REQUIRING CERTAIN SERVICE FOR COSTS AND QUALITY. SO MARKET AREAS SHRINK. THIS IS A RECENT EFFORT IN VANCOUVER, BRITISH COLUMBIA, THE INTERNATIONAL TRADE GATEWAY. VANCOUVER SERVES AS A MAJOR POINT OF EXPORTS AND IMPORTS FOR ALL OF WESTERN CANADA, 30 MARINE TERMINALS, 22 RAIL S -- YARDS, TRANSPORT, HALF A DOZEN BORDER CROSSINGS AND 70,000 PEOPLE WORK DIRECTLY AT THESE FACILITIES. THERE IS SIGNIFICANT CONCERN THAT THIS ROAD NETWORK WILL NOT WILL YOU ADDITIONAL THROUGHPUT TO GET TO THESE PORTS IN THE FUTURE. BASICALLY, A NO BUILD VENUE, 20 YEARS FROM NOW, WE WOULD BE SEEING INCREASING EXPENSE FOR PEOPLE DRIVING CARS, HIGHER SHIPPING COSTS FOR SHIPPERS TRYING TO GET THINGS BY TRUCK, REDUCING THE COMPETITIVENESS AND THE ATTRACTIVENESS OF THE -- -- OF THE AREA, CAPACITY LIMITATION BECAUSE OF BRIDGE CROSSING OVER RIVERS, RAIL CARS CAN'T GET THROUGH, BUSINESSES WILL HAVE TO SEEK ALTERNATE ROUTES, ALL OF THIS THESE GROUND TRANSPORTATION SYSTEM LIMITATIONS, LEAD TO HIGHER COSTS AT THE MARINE PORTS AND AIRPORTS AND A LIKELY SHIFT BECAUSE PRODUCTS BECOME MORE EXPENSIVE TO OVERSEAS MARKETS, SO THERE'S ACTUALLY A LOSS TO THE NATIONAL ECONOMY, TO NORTH AMERICAN ECONOMY, RELATIVE TO ASIA.


THE ECONOMIC IMPLICATIONS WERE CALCULATED IN TWO WAYS, FIRST WAS A DIRECT CONSTRAINT ON GROWTH THAT JUST CAN'T GET THROUGH, BECAUSE OF THE LIMITATIONS ON RAIL CROSSINGS AND ROAD SYSTEM, SOMEWHERE IN THE ORDER OF 7,000 TO 16,000 JOBS, 20 YEARS FROM NOW, AND THIS IS ANNUALLY, BUT THE STAKES FOR ECONOMIC COMPETITIVENESS ARE EVEN GREATER, BECAUSE THERE'S OVER 150,000 JOBS IN PRODUCTION INDUSTRIES THAT DEPEND DIRECTLY ON THIS GATEWAY, AS THE GATEWAY IS NOT COMPETITIVE. SOME FRACTION THAT WILL BE LOST TO OVERSEAS AND OTHER MARKETS AND THAT FRACTION IS UNKNOWN BUT SIGNIFICANT. SO THE BASIC BOTTOM LINE IS THAT THE BENEFIT, IF YOU LOOK INTO THE REGIONAL AND NATIONAL ECONOMIES, CAN BE VERY SNIFFING CAN'T. WHEN COMPARED TO THE COSTS. BUT THAT WHAT WAS BEING TALKED ABOUT HERE IS, TO ADDRESS THESE ISSUES, IS A SYSTEM APPROACH THAT INVOLVES BRIDGES, ROADS, RAIL LINES AND EVEN A TRANSIT LINE, BECAUSE THE ARGUMENT IS BY INVESTING IN A PUBLIC TRANSIT IT ALLOWS BETTER THROUGHPUT FOR PORTS TO GET TO PORTS. THAT'S THE IDEA OF THE MULTI MODAL APPROACH THAT WAS USED IN VANCOUVER. IT IS FAR FROM LEN. MANY OTHER PLACES HAVE ALSO HAD TO APPROACH SIMILAR CONCERNS ABOUT FREIGHT ACCESS TO PORTS AND THEIR CRITICAL ECONOMIC DEVELOPMENT FUNCTIONS, LOS ANGELES, ALAMEDA TRUCK CORRIDOR, NEW YORK CITIES, PORT INLAND NETWORK IS DEVELOPING RAIL AND BARGE FEEDER SERVICE TO AVOID GROUND TRANSPORTATION BOTTLENECKS. IN ROTTERDAM, NETHERLANDS, THEY HAVE DEVELOPED INLAND PORT SITES SOME DISTANCE AWAY, THIS IS ACTUALLY SHOWN IN THE PICTURE, AUTOMATED LOADING ON ON RAIL LINES THAT GO ELSEWHERE IN THE COUNTRY. THERE ARE MANY WAYS TO ADDRESS WHAT IS THE SAME PROBLEM. ANOTHER EXAMPLE TO GIVE IS SOME CHICAGO, NOW, IN CHICAGO, HAS A NATIONAL CENTER FOR RAIL SYSTEMS, AND IT TRANSFERS BETWEEN THE EASTERN HALF OF THE COUNTRY AND THE WESTERN HALF, ACTUALLY 74 RAIL YARDS, 17 INTERMODAL FACILITIES. THIS LEADS TO 600 DIFFERENT RAIL GRADE CROSSINGS ON ROADS, AND THERE IS OVER 3,000 DAILY TRUCK TRIPS, JUST TRANSFERRING CARGO FROM RAIL YARD TO RAIL YARD, NOT EVEN COUNTING ADDITIONAL LOADINGINGS THAT OCCUR. CITY HAS QUITE A FEW ABANDON $ AND AND UNDER ED RAIL CARS, WHICH LED TO THE SITUATION, ON THE ONE HAND, MORE AND MORE TRUCK CONGESTION IN THE CITY, MORE CONCERN ABOUT THE INEFFICIENCY OF THE RAIL CONCERN -- SYSTEM AND CONCERN ABOUT TRUCKS AND INEFFICIENT RAIL THE CITY COULD BE LOSING SOME OF ITS ECONOMIC COMPETITIVENESS. SO THIS LED, THE CITY TO CONSIDER A SERIES OF ALTERNATIVES FOR RECONFIGURING RAIL SYSTEM. EVERYTHING FROM KEEPING THE 74 EXISTING RAIL YARDS TO ENCOURAGING ALL THE RAIL OFF TO SHIFT TO THE SUBURBS, TO SOME LIMITED CONSOLIDATION AND UP UPGRADING ON A SMALL NUMBER OF RAIL S -- YARDS, OR JUST ENCOURAGING ALL THE TRAINS TO BYPASS THE CITY ENTIRELY. ECONOMIC ANALYSIS WAS DONE, LOOKING AT EACH OF THE ALTERNATIVES, WHAT THEY WOULD DO TO -- JOB IMPACT, WHICH VARIED IF YOU LOOK AT THE RIGHT COLUMN IN THE TABLE BETWEEN A LOSS OF OVER 15,000 JOBS TO A GAIN OF OVER 8,000 JOBS AND IF WE CONSIDER THAT ABANDONED RAIL YARDS COULD BE USED FOR ALTERNATIVE PURPOSES, THAT COULD LEAD TO UP TO NEARLY 20,000 ADDITIONAL JOBS. SO, THE STAKES ARE HIGH AND THE FINDINGS WERE THAT THE RAIL YARD AND AND RAIL FREIGHT WAS SO IMPORTANT TO THE ECONOMY OF CHICAGO, THAT THE BEST ALTERNATIVE BY FAR WAS WHAT WAS CALLED RATIONALIZATION, WHICH WAS TO CON SOL DATE RAIL, MAKE IT MORE EFFICIENT, TO UPGRADE THE INFRASTRUCTURE SIGNIFICANTLY AND ONLY TAKE THE UNUSED RAIL YARDS TO BE REDEVELOPED. SO HERE IS ANOTHER EXAMPLE OF DEALING WITHIN EFFICIENCY AND CONGESTION. A FINAL EXAMPLE TO OFFER ON THE URBAN CONTEXT WOULD BE THE ONGOING NCHRP STUDY, WHICH IS LOOKING AT RAIL FREIGHT SOLUTIONS TO ADDRESS HIGHWAY CONGESTION. THE POINT OF THIS STUDY IS THAT WITH RISING CONGESTION, WE ARE SEEING A CONVERGENCE OF INTEREST BETWEEN PRIVATE SECTOR TRANSPORTATION CARRIERS, THE TRUCKING AND RAIL COMPANIES AND PUBLIC PLANNING AGENCIES. THEY ALL HAVE A COMMON INTEREST. IT AFFECTS PUBLIC PROCESS, SAFETY AND AS WE SAW IN CHICAGO, ECONOMIC DEVELOPMENT OPPORTUNITIES. THAT STUDY IS LOOKING FOR HOW WE CAN DEVELOP A DECISION FOR FRAMEWORKING, LOOKING AT HOW WE CAN DEVELOP PRIVATE SECTORS TO PURSUE A COMMON INTEREST. I HAVE BEEN TALKING ABOUT A LOT OF CONGESTION AND FREIGHT. LET'S LOOK AT THE RURAL SITUATION CONTEXT. BASED ON NORTHERN NEW YORK AND RURAL MONTANA. A BUSINESS COMPLAINT IS WE HAVE HIGHER COST OF TRUCKING, THAT IS BECAUSE OF DEAD HEADING, TRUCKS COME IN EMPTY EMPTY IN ORDER TO -- IN ORDER TO BRING PRODUCTS OUT TO MARKETS. BECAUSE THEY ARE GOING EMPTY ONE WAY. TRUCKING COMPANIES HAVE CHARGED MORE MONEY. SECONDLY, THEY ALSO -- THERE IS A SHORTAGE OF VEHICLES, WHEN HAVE THE OPPORTUNITY TO MAKE MONEY BOTH S, THE TRUCKS GET USED FOR THOSE SERVICES AND THE ONES THAT HAVE DEAD -- DEAD HEADING GET LAST PRIORITY. LOWER AVAILABILITIES OF VEHICLES, VEHICLE SHORTAGES, DELAYS IN THE VEHICLES SHOWING UP, BECAUSE SOME OF THE RAIL LINES WANT TO SAVE ON ORIGIN TO DESTINATION, THEY HAVE TO SAVE COSTS THAT OBVIOUSLY IS A LOSS OF REVENUE. BOTTOM LINE, IF COSTS ARE INCREASED FOR DOING BUSINESS IN THESE RURAL AREAS. WHILE THE THE THE HALF OF THE CHART ARE URBAN ISSUES, THE BOTTOM IS ACTUALLY THE SAME END RESULT WHICH IS I RE -- A REDUCED OPPORTUNITY FOR GROWING BUSINESS WE HAVE A SMALLER MARKET AREA THAT CAN BE SERVED FOR BUSINESS, GIVEN HIGHER COST QUALITY. IT ALSO LEADS TO A AVERAGE VALUE OF GOODS PRODUCED IN RURAL AREAS BUT AGAIN WE SEE HOW REDUCED MARKET OPPORTUNITIES HAVE ECONOMIC DEVELOPMENT IMPLICATIONS. GIVEN SOME URBAN EXAMPLES, LET ME GIVE A RURAL EXAMPLE. THIS IS A STRETCH, CALLED APPALACHIAN CORRIDOR T, WAS CALLED NEW YORK 17, IT IS NOW CALLED INTERSTATE 66 AND THE SOUTHERN TIER EXPRESSWAY. HIGHWAY SEGMENT IN A MOUNTAIN REGION OF NEW YORK STATE. NEAR NEAR THE PENNSYLVANIA LINE. THE AIRY HAD BEEN ECONOMICALLY DISTRESSED AND LOSING THE JOBS. A STUDY THAT WAS SPONSORED BY THE FEDERAL HIGHWAY ADMINISTRATION LOOKED AT OPENING THE NEW INTERSTATE OHIO LOOKING AT OTHER COMPARABLE AREAS THAT THAT DID NOT HAVE AN INCREASE IN ACCESS. WHAT THAT STUDY FOUND IS THAT THERE WAS, IN FACT A FRIDAYS -TRACE, NEW FREIGHT DISTRIBUTION FACILITIES, MANUFACTURING AND TRAFFIC SERVICES OPENING UP IN THE AREA AFTER THE INCREASE IN THE INTERSTATE. HERE IS AN EXAMPLE THAT COMPARED THE LINE ON THE BOTTOM IS MANUFACTURING JOBS AND NEW YORK STATE ALL OUTSIDE OF NEW YORK CITY? THE DOTTED GREEN THAT IS RIGHT NEAR IT IS COMPARISON AREA WHICH WAS IN NORTH COUNTRY CENTRAL REGION WHICHED LOSING JOBS AT THE SAME RATE. THE TOP LINE IS THE SOUTHERN TIER WEST REGION OF I-86 WHERE THE INTERSTATE, SINCE OPENING, HAS LED TO AN INCREASE. YOU COULD ACTUALLY SEE AFTER IT OPENED IT NOTCHED UP HIGHER, AN INCREASE IN JOBS. THIS DOES NOT MEAN THAT OPENING UP NEW HIGHWAYS CREATES JOBS EVERYWHERE. IT MEANS WHERE THERE IS GOOD CONNECTIONS TO MARKETS, IT CAN MAKE A DIFFERENCE. ANOTHER FOR EXAMPLE TO OFFER IS JANE'SVILLE, WISCONSIN, IT HAS A COUPLE OF AUTOMOBILE MANUFACTURING PLANTS AND HAD ATTRACTED A NUMBER OF PARTS MANUFACTURERS TO SERVICE THOSE PLANTS. WHAT HAPPENED OVERTIME WAS INCREASING NATIONAL AND INTERNATIONAL OPERATIONS FOR THE AUTO MANUFACTURING PLANTS, THESE PARTS MANUFACTURERS ORIGINALLY SERVING GM AND CHRYSLER PLANTS LOCALLY ARE NOW SHIPPING PLANTS OUT TO FACILITIES IN SOUTH CAROLINA, MICHIGAN AND MEXICO, ON TEAR I DON'T AND MISSOURI. SO WHAT HAPPENED, JUST THE RELIANCE ON MANUFACTURING IS JUST AN INCREASE IN NEEDS FOR SHIPMENTS OF TRUCK AND SHIPMENTS BY AIR AND WHAT HAPPENS AS INCREASING GLOBAL SHIPMENTS HAPPENS FOR PARTS MANUFACTURERS AND AUTO PLANTS, THEY FOUND THAT THE EXISTING FACILITIES LOCALLY COULD NOT MEADE THOSE -- MEET THOSE NEEDS? THE STATE DOT WAS STILL CONCERNED THAT THIS LED TO A LOT OF INEFFICIENCY AT THE PLANT, A POTENTIAL LOSS OF JOBS TO OTHER COUNTRIES. WHAT THEY PUT TOGETHER IS QUITE QUITE NOTABLE BECAUSE OF MULTI MODAL NATURE. IT WAS A SERIES OF HIGHWAY IMPROVEMENTS, RAIL CROSSING AND A NEW RUNWAY. ALL PUT TOGETHER IN A PACKAGE DESIGNED TO TOGETHER ADDRESS THE NEEDS OF THIS INDUSTRY SECTOR. THIS IS A GOOD EXAMPLE OF WORKING TOGETHER AS A MULTI MODAL CONTEXT.


PAUSE IN CAPTIONS


TO DEVELOP A GUIDE TO HELP PLANNERS IDENTIFY OPPORTUNITIES FOR THE NEW HIGHWAYS AND THE ACTIONS THEY NEED TO PURSUE THEM. I WILL SHOW YOU AT THE END THE LINKS TO THESE REPORTS. SO, WHERE THERE ARE BUSINESSES, POPULATION BASED AND INTERMODAL FACILITIES AND PLACES TO SERVE THEM, THERE ARE OPPORTUNITIES. IN THOSE OPPORTUNITIES, THE FAILURE TO PROVIDE THE NEEDED FREIGHT ACCESS DOES CON TRAIN ECONOMIC DEVELOPMENT. THAT MEANS THERE IS A LOST OPPORTUNITY FOR ECONOMIC GROWTH, GOOD PAYING JOBS AND JOBS FOR THE NEXT GENERATION. THE WAY YOU THINK OF IT, IT IS NOT IF YOU BUILD IT THEY WILL COME, IT IS THAT THE POTENTIAL BENEFITS OF INFRASTRUCTURE INVESTMENT IS TAKING ADVANTAGE OF OPPORTUNITIES NOT THERE AND LOSING THE OPPORTUNITIES. LISTING HERE AND WILL BE AVAILABLE AFTERWARDS WHEN POSTED ON THE WEBSITE ARE LINKS TO THE VARIOUS STUDIES THAT I TALK ABOUT TODAY. THANK YOU.


JENNIFER SEPLOW:

THANK YOU, GLEN. AND THANK YOU TO THOSE OF YOU WHO ARE POSTED QUESTIONS TO THE CHAT AREA. I WILL GET TO THOSE QUESTIONS AFTER ALL OF THE PRESENTATIONS. EXCUSE ME. I KNOW YOU ARE PROBABLY TRYING TO GET DOWN THESE LINKS. IN THE INTEREST OF TIME, I WILL TAKE OFF THIS SLIDE AND MOVE TO THE NEXT PRESENTATION, BUT I WILL PUT THE SLIDE UP AT THE END OF THE SEMINAR, I WILL ALSO MAKE SURE IN THE FOLLOWUP E-MAIL INCLUDE THOSE LINKS AS WELL. I WILL NOW TURN IT OVER TO MARTIN WEISS. HE IS IN THE SAME ROOM WITH ME. EXCUSE US AS WE SWITCH POSITIONS HERE. I WILL THEN LET HIM BEGIN WITH HIS PRESENTATION.


MARTIN WEISS:

THANK YOU VERY MUCH, JENNIFER. FIRST LET ME GIVE YOU A LITTLE BIT OF BACKGROUND, WHY THE FHWA CARES ABOUT THE LINKAGE BETWEEN FREIGHT AND ECONOMIC DEVELOPMENT. THE TOTAL NUMBERS OF -- THAT HAVE BEEN DESIGNATED BY CONGRESS AND FREIGHT, AS FAR AS I KNOW, COMES TO THE GRAND SUM OF ZERO, THAT IS THE SAME AS THE NUMBER OF CORRIDORS THAT HAVE BEEN DESIGNATED BY THE CONGRESS AS ECONOMIC DEVELOPMENT CORRIDORS, I BELIEVE THAT ALSO COMES TO ZERO ALSO HOWEVER, OBVIOUSLY I HAVE AN INTEREST, AS FAR AS FHWA IS CONCERNED, WE ARE FOCUSING ON AREAS THAT ARE RURAL, ALL THE WAY UP TO SMALLER, AND MEDIUM-SIZED URBAN AREAS AND ALSO TRYING TO FOCUS IN AREAS ECONOMICALLY DISTRESSED, BECAUSE THEY HAVE LOST POPULATION OVER 30 YEARS OR BECAUSE THEY HAVE HAD A HIGH UNEMPLOYMENT IN THE LAST 10 YEARS, SAY. NOW THIS CORRIDOR HERE, THE FIRST ONE THAT I AM SHOWING, IS, WELL, LET ME SAY IF THERE EVER WAS A CORRIDOR, THAT WOULD BE DESIGNATED AS FREIGHT AND ECONOMIC DEVELOPMENT, IT WOULD BE THIS CORRIDOR, I-99 WHICH CONNECTS INTERSTATE 80 AND 76. A LOT OF LOGISTICS OPPORTUNITIES EXIST ON THIS CORRIDOR AND IT GOES BY PENN STATE UNIVERSITY, SO THERE'S A LOT OF POSSIBLE HUMAN CAPITAL TO EXTEND PRODUCTION INTO THIS CORRIDOR. IT IS ALSO THE BUD SCHUSTER HIGHWAY, IF ANY OF YOU REMEMBER THINGS LIKE THAT. NOW, I AM GOING TO COVER THREE PRINCIPLES ABOUT ECONOMIC DEVELOPMENT AND FREIGHT. FIRST, I AM GOING TO TALK ABOUT THE TYPES OF CONCEPTUAL RELATIONSHIP BETWEEN, BETWEEN THE TWO, BETWEEN FREIGHT AND BETWEEN ECONOMIC DEVELOPMENT.. I AM GOING TO FOR EACH ONE OF THESE RELATIONSHIPS, TRY TO GIVE AN EXAMPLE. THEN I WILL CONCLUDE WITH THE LIMITS THAT WE CAN PUSH THIS WHICH ARE PRETTY MUCH THE SAME LIMITS THAT GLEN WEISBROD JUST SPOKE ABOUT. OKAY. THERE ARE FIVE TYPES OF RELATIONSHIPS, THE FIRST, IF YOU HAVE A HIGHWAY IMPROVEMENT, IT CAN MAKE BUSINESS MORE PRODUCTIVE, AND IT CAN RESULT IN ESSENTIALLY MORE BUSINESS, PRODUCTIVE BUSINESSES, GETTING MORE CUSTOMERS, AND THEY MAKE MORE PROFIT AND THEY EXPAND AND SO FORTH. ANOTHER CONCEPT IS THAT IF YOU HAVE HIGHWAY IMPROVEMENTS, IT CAN MAKE IT EASIER FOR BUSINESSES TO SERVE OTHER BUSINESSES THAT ARE LOGISTICALLY RELATED, AND I AM GOING TO GIVE AN EXAMPLE OF IT, OF THAT. THE THIRD ONE IS IT MAY HELP BUSINESSES GROW. BUSINESSES THAT RIGHT NOW ARE JUST A GLEAM IN THE EYE WITH A LITTLE STARTUP CAPITAL AND WITH A HIGHWAY IMPROVEMENT, THEY MAY HAVE A CHANCE TO GROW. THE FOURTH ONE, ALLOWS BUSINESS ACCESS TO MORE EMPLOYEES AND CUSTOMERS THAN THE EXISTING BUSINESS, AND EVEN IF IT DOESN'T GROW, THE BUSINESS WORKS BETTER, CUSTOMERS HAVE BETTER ACCESS, BUSINESS CAN CHOOSE FROM A WIDER AREA OF EMPLOYEES, AND THE FIFTH KIND IS WHAT PEOPLE PERHAPS THINK ABOUT A LOT IS WHEN YOU SEE IT GO UP, GAS STATION, SO FORTH, I SEE -- CALL THAT A TRAVEL RELATED DEVELOPMENT, EARLY IN THE BUSINESS ECONOMIC PROCESS. FIRST OF ALL, MAKING BUSINESS MORE PRODUCTIVE. I THINK THE BEST CASE THAT I HAVE BEEN ABLE TO COME ACROSS, WHERE I HAVE BEEN ACTUALLY ABLE TO MAP OUT FROM THE BEGINNING TO THE END WHERE THE HIGHWAY STARTED WHERE --AND WHERE IT ENDED. THE FIRST PICTURE THERE, THE BEFORE, IS IN 1999, AND IN 1999, YOU KNOW, ON INTERSTATE 35, NEAR, NORTH OF LAREDO, THERE WAS ONLY ONE CROSSING, ONE BORDER CROSSING, AND WITH DOWNTOWN LAREDO, TRAFFIC BACKED UP TO 10 MILES ON I-35, AS EMBARRASSING AS THAT IS, AND THERE WAS A -- YOU COULDN'T GET FROM ONE SIDE OF THE DOWNTOWN TO THE OTHER SIDE WITHOUT GOING THROUGH, WALKING, ESSENTIALLY, IN BETWEEN TRUCKS. 2000, A NEW BRIDGE WAS OPENED, THE WORLD TRADE BRIDGE, AND COMMERCIAL VEHICLES USED THAT, USED THAT BRIDGE AND THUS ESSENTIALLY THAT BIG LONG LINE OF TRUCKS DISAPPEARED. NOW THAT WAS ONE IN WHICH THE STATE HIGHWAY AGENCY AND THE LOCALS AND, I MIGHT ADD, THE BORDER AGENCIES AND THE MUNICIPAL OFFICIALS ON THE MEXICAN SIDE ALL WORKED TOGETHER TO REALLY HELP US WITH THE PROCESS. THEY PRETTY MUCH STARTED REAL THINKING ABOUT THIS IN 1991, AND BY 2000, THE BRIDGE WAS OPENED, WHICH ONLY ABOUT -- THE EIS. PROCESS ONLY ENDED UP BEING FOUR OR FIVE- YEARS, WHICH WAS PRETTY DARN QUICK. EVERYBODY WAS WORKING AS QUICK AS THEY CAN, AND OF COURSE THE STATE PROVIDED EXTRA CAPITAL AND THE LOCALS PROVIDED EXTRA LOANS AND SO FORTH AND SO ON. HERE IS WHAT HAPPENED. THE U.S. IS THE BLUE LINE; TEXAS IS, THE GREEN LINE, THIS IS ON THE BOTTOM, IS LAREDO, AND IN EVERY WAY YOU CAN LOOK AT IT, LAREDO DID BETTER THAN EITHER TEXAS OR THE US. THIS IS IN THE PERIOD 1999, AUGUST TO 2001 AUGUST. I CAN'T REALLY EXTEND THIS VERY EASILY BECAUSE OF THE SEPTEMBER 2001 TERRORIST ATTACKS DID RESULT IN BORDER SECURITY AUGMENTATION, WHICH SLOWED DOWN VEHICLES. SO I HAVE ESSENTIALLY AN ANALYTICAL DISCONTINUITY THAT I HAVEN'T BEEN ABLE TO FIGURE OUT HOW TO OVERCOME. AND THIS INFORMATION IS PRETTY MUCH TAKEN STRAIGHT FROM THE BUREAU OF LABOR STATICS. YOU CAN DO IT YOURSELF -- IT ONLY TOOK ME ABOUT FOUR HOURS. IN ANY EVENT, LOOK AT THE EMPLOYMENT RATE. IT WENT UP IN LAREDO, THAT IS, A HIGHER PERCENT OF THE LABOR FORCE WAS EMPLOYED, WENT DOWN IN TEXAS AND THE U.S, CIVILIAN EMPLOYMENT. TOTAL NUMBER OF PEOPLE WENT WAY UP IN LAREDO, A LOT OF TEXAS, A LITTLE BIT IN U.S, CIVILIAN LABOR FORCE AGAIN, WENT UP IN LAREDO, ALSO UP A LITTLE BIT LESS THAN IN TEXAS AND THE U.S. A. AGAIN, THIS IS THE ONLY ONE WHERE I HAVE BEEN ABLE TO PRETTY MUCH FOLLOW EVERYTHING THAT WAS DONE AND GET IT GOOD -- GET A GOOD BEFORE AND AFTER, AT LEAST IN THIS SCALE. NOW LETS LOOK AT THE RELATIONSHIP WHERE IT SIMPLY IS EASIER TO SERVE OTHER BUSINESSES AS IT IS LOGISTICALLY RELATED. HERE IS A PLANT NEAR A HIGHWAY IN IMPERIAL COUNTY, CALIFORNIA. THAT IS A COUNTY WITH VERY HIGH UNEMPLOYMENT, WE ARE TALKING 13%, 14%, SOMETHING LIKE THAT. THEY DO HAVE A LOT OF AGRICULTURE THERE, THERE IS A LOT OF ALFALFA GROWN, THERE IS -- -- THERE IS A LOT OF CATTLE GROWN THERE. THERE WAS A CITY, ONE IN IMPERIAL COUNTY, AND INCIDENTAL WITH THAT IMPROVEMENT AND PLANS WITH THAT IMPROVEMENT, THERE WAS A BEEF PLANT, WHICH USES THE CATTLE THAT ARE IN IMPERIAL COUNTY, THE CATTLE THAT ARE FED WITH THE ALFAFA IN IMPERIAL COUNTY, AND THERE ARE A LOT OF JOBS AND VALUE ADDED THERE. LET'S TALK ABOUT HOW INCIPIENT BUSINESSES GROW. I AM NOT TALKING ABOUT THE BUFFALO BUSINESS ITSELF, BUT I AM TALKING ABOUT THE TOURIST BUSINESS, AND IN SOUTH DAKOTA, THERE ARE A LOT OF TOURIST ASSETS IN TWO COUNTIES IN SOUTH DAKOTA; SCENIC, HISTORICAL ASSETS, THIS IS, I WOULD SAY, SOME SORT OF BIOLOGICAL, CULTURAL AND SO FORTH. BUT THERE ARE ALMOST NO TOURISTS, AND THERE ARE TWO REASONS FOR THAT. ONE REASON, THE ROADS REALLY AREN'T VERY GOOD. THEY ARE GRAVEL, BY AND LARGE GRAVEL. ANOTHER REASON IS THAT THE INDIAN RESERVATION HAS VIRTUALLY NO -- WELL, IT HAS ZERO MOTELS, AND IT HAS, I THINK, ONLY ONE RESTAURANT AND THE BIGGEST BAG OF POTATO CHIPS YOU CAN BUY IN THE ENTIRE COUNTY IS 6 OUNCES, SO EVEN PEOPLE WHO WANT TO SHOP GO SOMEWHERE ELSE. YOU ARE GOING TO NEED TO -- IF YOU WANT THAT INCIPIENT BUSINESS TO GROW, TO DEVELOP TOURIST ASSETS IN THAT AREA, YOU HAVE TO IMPROVE MORE THAN ROADS, THERE HAVE TO BE MOTELS, PROBABLY A GROCERY STORE THAT SELLS BIG BAGS OF CHIPS WOULD HELP TOO. BUT, AT ANY RATE, THAT IS THE RELATIONSHIP. HERE IS ANOTHER ONE, AND THIS IS A CORRIDOR THAT GLEN SHOWED, THE I-86 CORRIDOR. THIS IS A MUSEUM AND THEATER COMPLEX WHERE LUCILLE BALL'S BIRTH PLACE IS, BORN IN NEW YORK. THE INTERSTATE THERE HAS ALLOWED FOR A MUCH LARGER CUSTOMER BASE FOR THIS KIND OF THING. THIS IS AN AREA BY THE WAY AS GLEN SAID IS ECONOMICALLY DISTESSED, AND ECONOMICALLY DISTRESSED BY VERY LONG-TERM POPULATION LOSS AND MANUFACTURING JOB LOSS. IT CERTAINLY HELPS IMPROVE IT BY HAVING OTHER KINDS OF JOBS. THERE ARE NEW MOTELS GOING UP NEAR THE LUCILLE BALL COMPLEX, LARGELY BECAUSE PEOPLE CAN GET THERE AND PEOPLE GET THERE BECAUSE OF I-86. TRAVEL CLUSTER BUSINESS. I TOLD YOU, THAT IS THE MORE TRADITIONAL ONE. HERE IS A BUSINESS CLUSTER, THERE IS A RESTAURANT, A DANCE CLUB, THAT I PHOTOGRAPHED AND OUTSIDE THE PICTURE, IF YOU LOOK TO THE RIGHT OF WHERE THE PICTURE WAS, THERE WAS A CONVENIENCE STORE AND GAS STATION. SEEMS TO ME THERE MUST BE AT LEAST 100 TO 200 PEOPLE WHO WOULD BE EMPLOYED THERE, AT SOME POINT OR ANOTHER. HOWEVER, EDGAR, WISCONSIN, ONLY HAD A POPULATION OF ABOUT 200. ACTUALLY, THE SIGN OUTSIDE THE TOWN HAD A SIGN THAT SAID ABOUT 150 PEOPLE, BUT WE HAD A CENSUS REPORT THAT SAID 200. WELL, WHERE DO THE EMPLOYEES COME FROM? WELL, IT'S BECAUSE THIS STATE ROUTE 29 WAS IMPROVED BEFORE -- TO FOUR LANES THAT WE CAN GET THERE, IF I MIGHT ADD IT'S PROBABLY BECAUSE OF THAT; THAT THE CUSTOMERS, THE RESTAURANT, THE DANCE CLUB, GAS STATION OR CONVENIENCE STORE CAN GET THERE. NOW, LET'S TALK ABOUT THE LIMITS, AND HERE I HAVE THE FOUR BULLETS ARE IN SAME COLORS, THAT THE PACMAN GHOSTS WWERE IN. HIGHWAY IMPROVEMENTS DON'T CREATE ECONOMIC DEVELOPMENT, UNLESS SOMETHING ELSE IS HAPPENING. AS GLEN SAID, CONNECTING NOWHERE TO NOWHERE IS NOTHING, THIS IS ANOTHER WAY OF SAYING IT. IT IS SHOWN A LOT BY THE SOUTH DAKOTA EXAMPLE. THEY NEED MORE THAN THE HIGHWAYS, THEY NEED RESTAURANTS , THEY NEED THE HOTELS, THEY NEED VARIOUS OTHER KINDS OF THINGS, NOW WE ARE LOOKING AT THE BULLET. TYPICALLY, ECONOMIC DEVELOPMENT DOESN'T HAPPEN QUICKLY. IT TAKES YEARS OF, IN THE CASE OF THE ONE IN LAREDO, IT ONLY TOOK A COUPLE OF YEARS, BUT I THINK IN MORE RURAL, THE MORE RURAL YOU GO, THE LONGER IT'S GOING TO TAKE, AND THE APPALACHIAN REGION THAT GLEN SHOWED, A LOT OF ECONOMIC DEVELOPMENT STILL IS IN THE INFANCY, EVEN FOR ROADS THAT WERE IMPROVED 10 YEARS AGO. LOOKING AT THE TRUCK THAT IS IN COLOR, FREIGHT IS AN IMPORTANT PART OF THE PICTURE, BUT IT IS REALLY IN FOCUS, IN SOME CASES, IT IS NOT NOT-EVEN THE MAIN FOCUS, AGAIN, LET'S CONSIDER THE SOUTH DAKOTA EXAMPLE. PEOPLE ARE GOING TO FLY TO RAPID CITY, LARGELY, TO GO TOURISTING THERE. THEY ARE GOING TO DRIVE IN BUSINESSES OR CARS, TO GET TO THOSE ASSESSMENTS, OF COURSE, FREIGHT IS IMPORTANT BECAUSE THINGS HAVE TO BE DELIVERED TO THE GAS STATIONS AND MOTELS AND RESTAURANTS, BUT IN THAT PARTICULAR CASE, FREIGHT IS MUCH LESS OF AN ELEMENT. ON THE OTHER HAND, IF YOU LOOK AT ONE OF THE OTHER THINGS THAT I SHOWED FOR THE FIRST SLIDE, I-99, IT WAS VERY CLEAR THAT THIS IS A LOGISTICS CORRIDOR AND A LOT OF EMPLOYMENT WILL BE DONE JUST BECAUSE OF LOGISTICS. NOW BECAUSE OF DEMOGRAPHICS, POLICIES, CULTURES AND INHIBIT DEVELOPMENT. IF YOU HAVE, AS GLEN SAID, NOWHERE TO NOWHERE, WHERE THERE ARE ESSENTIALLY NO DEMOGRAPHICS, NO PEOPLE, NO MATTER HOW YOU IMPROVE THE ROAD, IT IS JUST NOT GOING TO MATTER. IF YOU COULD HAVE, LET'S SAY A 12-LANE ROAD BETWEEN PRUDUE BAY AND FAIRBANKS, YOU WILL NOT HAVE A LOT OF EMPLOYMENT ON THE ROAD, IT'S NOT GOING TO HAPPEN. ON THE OTHER HAND, THAT LITTLE BIT OF IMPROVEMENT IN THE AREA OF IMPERIAL COUNTY PRODUCED A BIG EMPLOYER AND THAT WAS AN $80-SOMETHING MILLION PROJECT. THE PROJECT IN LAREDO DID IMPROVE A LOT OF THINGS. BY THE WAY I SEE I HAVE A QUESTION ABOUT THE PROJECTS BEING 100% GOVERNMENT FUNDED. THE STUDIES WERE 100% GOVERNMENT FUNDING HOWEVER IN CONSTRUCTION, IT IS USUALLY BY THE RULES OF CHAPTER 1, TITLES 23 WHICH IS TYPICALLY 80% FEDERAL AND SOMEWHAT HIGHER IN THE WEST. I AM GOING TO END THIS BY SHOWING A PICTURE OF MYSELF, ALWAYS GOOD WAY TO END, A WEBSITE WHICH I THINK GLEN ALSO SHOWED, AND AN IMAGE OF WHAT OUR WEBSITE LOOKS LIKE, BY THE WAY, WE HAVE HOT LINKS TO GLEN'S WEBSITE, THE COMPANY HE IS A PRESIDENT OF AND ALSO WE HAVE A HOT LINK TO WILBUR SMITH, A TRANSPORTATION -- THEY ARE WORKING ON A TRANSPORTATION STUDY WITH WHERE THE FHWA IS PARTIALLY FUNDING IT WITH THAT I GUESS AS BINKY, WINKY, PINKY AND CLYDE MIGHT SAY, GAME OVER.


JENNIFER SEPLOW:

THANK YOU, MARTIN AND TO OF YOU WHO POSTED QUESTIONS. I WILL NOW TURN THE PRESENTATION OVER TO MATTHEW PRIESLER. IF MATTHEW WILL GIVE ME A SECOND TO SET THIS UP. OKAY, MATT, YOU ARE NOW THE PRESENTER. SO GO AHEAD WHEN YOU ARE READY.


MATTHEW PREISLER:

OKAY, GREAT. FIRST OF ALL, I AM GOING TO GIVE YOU GUYS TODAY A 20-MINUTE PRIMER ON AIR CARGO DEVELOPMENT. ESSENTIALLY, THE STEPS THAT NEED TO BE TAKEN, WHAT NEEDS TO BE LOOKED AT IN THE -- AND THE POTENTIAL BENEFITS THAT ARE OUT THERE. THE FIRST THING IS YOU NEED TO GAUGE WHAT YOUR AIR CARGO DEVELOPMENT POTENTIAL IS FOR A CERTAIN REGION, WHETHER IT BE NPO, STATE DOT AIRPORT AUTHORITY, WHATEVER AGENCY YOU ARE LOOKING TO DEVELOP, SAYING YOU HAVE TO LOOK AT YOUR MARKET AREA FIRST. FIRST YOU HAVE TO LOOK AT THE AIR CARGO MARKET WITHIN YOUR REGION. THINGS YOU NEED TO FIND, IS THERE DEMONSTRATED UNMET DEMAND FOR AIR CAR CARGO, ARE THERE EXISTING AIRPORTS IN YOUR REGION CAPACITY CONSTRAINTED, MEANING THERE IS NO MORE ROOM FOR THEM TO EXPAND, ARE THEY HAVING A HARD TIME MEETING EXISTING DEMAND? PERHAPS YOU ARE IN A REGION THAT HAS EXCEPTIONAL REGIONAL GROWTH, IS THAT EXCEPTIONAL REGIONAL GROWTH AND ECONOMIC GROWTH GOING TO DRIVE DEMAND IN THE FUTURE? THE LAST LAST WOULD BE SPECULATIVE DEVELOPMENT, THAT IS ARE YOU IN A REGION THAT MIGHT BE ECONOMICALLY DEPRESSED AND YOU ARE LOOKING TO DEVELOP AN AIR CAR FACILITY -- CARGO FACILITY TO HELP SPUR GROWTH. ONCE YOU I -- IDENTIFY A POTENTIAL MARKET THERE, FIRST YOU LOOK AT THE AIRPORT, OR FOR UNDERUTILIZED FACILITIES, AIRPORTS THAT HAVE SOME ROOM TO EXPAND. YOU MIGHT WANT TO EXPAND REGIONAL OR MUNICIPAL AIRPORTS, GENERAL AVIATION AIRPORTS IN THE REGION TO HANDLE AIR CARGO ACTIVITY. OVER THE PAST DECADE, MILITARY BASE CONVERSIONS HAVE BEEN VERY POPULAR OPTIONS SINCE THERE HAVE BEEN SO MANY AIR FORCE BASES THAT HAVE BEEN DECOMMISSIONED OR ANY OF THOSE IN THE REGION THAT MIGHT BE CONVERTED FOR AIR CARGO FREIGHT USE USAGE. AND NEW CONSTRUCTION, ESSENTIALLY TAKING AVAILABLE LAND AVAILABLE FOR DEVELOPMENT AND BUILDING A NEW AIRPORT -- BRAND-NEW AIRPORT. . HOW DOES THAT AIR CARGO CREATE ECONOMIC ACTIVITY FOR YOUR REGION? FIRST OF ALL THE DIRECT IMPACTS, OBVIOUSLY, IF YOU BUILD A FACILITY YOU WILL HAVE AIR CARGO CARRIERS OPERATING AS FORWARDERS OR TRUCKERS, THERE WILL BE ANCILLARY SERVICES ON THAT AIRPORT THAT WILL GENERATE JOB JOB AND ECONOMIC ACTIVITY. THEN THERE ARE THE INDIRECT IMPACT, WHICH WILL BE THE SHIPPERS, MANUFACTURING AND THEIR SUPPLIERS, THIRD-PARTY LOGISTICS, DISTRIBUTION, RETAIL AND WHOLESALE, FTB THAT WILL UTILIZE, HOPEFULLY LOCATE NEAR YOUR FACILITY TO TAKE ADVANTAGE OF THE NEW SERVICES, AIR CARGO CONNECT ACTIVE ACTIVE -- CONNECTIVITY, BUT UNDER TAN THE BENEFIT WILL BE THE GREATEST IMPACT TO MAKE YOUR REGION MORE COMPETITIVE, WHERE YOU WILL CREATE THE MOST JOBS AND THE MOST ACTIVITIES WILL BE FROM THE MANUFACTURING AND DISTRIBUTION OPERATIONS THAT ARE GOING TO LOCATE NEAR YOUR FACILITY. AND, ONE BONUS OF AIR CARGO, INTENSIVE MANUFACTURERS AND DISTRIBUTORS, IS THE TYPES OF OF INDUSTRIES THAT USE AIR CARGO DISTRIBUTION, THEY PRODUCE AND TRANSPORT HIGH VALUE GOODS. THESE ARE VERY HIGH DESIRABLE TYPE, SUCH AS AUTO MANUFACTURING, COMPUTERS, SOFTWARE DEVELOPMENT, MEDICAL DEVICES, THESE ARE INDUSTRIES THAT YOU REALLY HOPE TO GET TO LOCATE TO YOUR REGION. THERE ARE FOUR PRIMARY PLANNING CONSIDERATIONS, WHEN YOU ARE LOOKING AT A FACILITY FIRST, YOU HAVE TO UNDERSTAND YOUR MARKET, WHICH WE TOUCHED ON ALREADY, WHETHER THERE IS A DEMAND FOR YOUR SERVICE. SECOND IS A CARGO CARRIER, WHICH IS OFTEN TIMES OVERLOOKED. YOU NEED TO UNDERSTAND WHO IS GOING TO SUPPLY NEW SERVICE FOR YOUR AIRPORT. WILL IT BE FEDEX, FREIGHT FORWARDER, ALL CARGO AIRLINE, YOU NEED TO UNDERSTAND THOSE SUPPLIERS OF THE SERVICE IN ORDER TO DEVELOP THE FACILITY. THE NEXT TWO KIND OF GO HAND IN HAND. THERE IS THE ANCHOR TENANT CONCEPT AND DEVELOPING A CRITICAL MASS OF SERVICERS AND OPERATORS IN YOUR FACILITY THAT ARE CRUCIAL TO ITS SUCCESS, AND WE WILL GO OVER EACH ONE OF THESE. FIRST, THE FIRST STEP WILL ALWAYS BE THE DEMAND ANALYSIS, AND WHAT THAT TELLS YOU IS THE GEOGRAPHIC REGION THAT WILL BE SERVED BY AN AIR CARGO FACILITY IS ESSENTIALLY CALLED THE CATCHMENT AREA. IT WILL WILL TELL WHAT YOU YOUR CORE MARKET GROUPINGS ARE, THAT WILL BE IN TERMS OF POPULATION CENTERS OR INDUSTRIAL CENTERS WITHIN THE AREA. IT CAN IDENTIFY THE COMPETING AIRPORTS WITHIN THAT REGION WHICH ARE KEY TO DEVELOPING AND MAYBE, I AM GOING TO SAY STEALING MARKET SHARE FOR YOUR FACILITY OR REGION, AND FOR THE NPOS OR STATE DOTS, WHICH IS VERY IMPORTANT, IT CAN IDENTIFY THE REGION THAT WILL BENEFIT FROM THIS FACILITY. IT WILL IDENTIFY YOUR CONSTITUENTS, THE PEOPLE THAT WILL BENEFIT, THAT YOU HAVE TO SELL THIS PROJECT TO. SO, AGAIN, THAT'S AN IMPORTANT, IMPORTANT THING TO KNOW FOR ANY OF THE ENTITIES THAT ARE TRYING TO GET THIS PROJECT OFF THE GROUND EXCUSE ME WHILE I TAKE A DRINK. WHAT THE DEMAND ANALYSIS ESSENTIALLY AT THE END TELLS US THE PROJECT IS SEASONABLE, IN TERMS OF CURRENT AIR CARGO, WITHIN YOUR DEFINED MARKET AREA, CAPACITY CONSTRAINTS AT COMPETING AIRPORTS, ACHIEVING LEVELS OF CARGO WILL VERY WELL A LOT TO DO WITH COMPETING AIRPORTS, HOW MUCH CAN YOU GET, CAN YOU DRAW AWAY ORIGIN RATE WITHIN YOUR AREA? MARKET GROWTH POTENTIAL, WILL TELL YOU THE AIRPORT LOCATION WITHIN THE REGION, WHICH MARKETS ARE MOST CONCENTRATES -- CONCENTRATED, MOST BENEFICIAL TO SHIPPERS AND THEIR CARGO CARRIERS, PERHAPS MOST IMPORTANT THE TYPES OF SHIPPERS AND FREIGHT WITHIN THE REGION. WILL IT BE WHOLESALE, RETAIL OR COMBINATION, WE WILL GO OVER THAT A LITTLE BIT MORE? THAT'S GOING TO TELL YOU WHAT TYPE OF AIR CARGO CARRIERS CAN FEES LOCATE AT YOUR FACILITY. THAT'S WHERE WE GET INTO THE SUPPLY ANALYSIS, WHO IS GOING TO SUPPLY THE SERVICE. WE NEED TO UNDERSTAND THAT AIR -- AIR CARGO IS NOT GENERIC AND AIR CARGO SERVICES IS NOT GENERIC. IT WILL BE DEPENDENT UPON THE TYPE OF FREIGHT AND TYPE OF SHIPPERS YOU HAVE IN YOUR REGION AND WHICH TYPE THE AIRPORT WILL INDICATOR TO. WE MENTIONED WHOLESALE AND RETAIL FREIGHT. LET'S GO OVER EXACTLY WHAT THAT IS. WHOLESALE, INDUSTRIAL AND MANUFACTURING SHIPPERS, HIGH VOLUME, HIGH FREQUENCY, HEAVY RELIANCE ON FORWARDERS AND ALL CHARTERS. WE ARE TALKING HERE SOMEONE LIKE DELL COMPUTER THAT WILL SHIP HALF AN AIRPLANE FULL OF COMPUTERS ON ONE SHOT OR AN AUTO MANUFACTURER THAT WILL IMPORT AN AIRCRAFT FULL OF PARTS TO DEFEAT ITS JUST IN TIME MANUFACTURING SYSTEM. THESE WILL BE LOCATED NEAR MANUFACTURING CENTERS, INDUSTRIAL PARK CONCENTRATIONS AND AS OPPOSED TO THAT, YOU HAVE THE RETAIL SIDE, WHICH IS MOSTLY CUSTOMER AND SMALL BUSINESS SHIPPERS, LOW VOLUME PER SHIPPER, SPORADIC FREQUENCY, AND THEY USE INTEGRATED EXPRESS CARRIERS, FEDEX, UPS, WHERE THEY OFFER DOOR-TO-DOOR SERVICES. THOSE TEND TO BE LOCATED NEAR POPULATION CENTERS AND URBAN CENTERS, WHERE YOU WILL SEE MORE RETAIL SHIPPING THAN THE WHOLESALE SHIPPING. SO ONCE YOU HAVE IDENTIFIED THE MAJORITY OF THE FREIGHT WIN YOUR REGION, YOU DECIDE WHO WAS MOST TO PROVIDE THE SERVICE WILL BE AN INTEGRATED EXPRESS CARRIER, WILL BE AN ALL CARGO CARRIER WITH THE FREIGHT FORWARD. WHAT YOU NEED TO DO IS DEVELOP THE FACILITY BASED ON THE ANTICIPATED SERVICE PROVIDER, BECAUSE IN THE END THEY ARE THE CUSTOMER FOR THE AIRPORT. IT IS NOT THE SHIPPER THAT IS A CUSTOMER FOR THE AIRPORT. IT IS WHO YOU ARE BUILDING THE AIRPORT FOR. THAT'S GOING TO BE FEDEX OR FREIGHT FORWARDER. IT IS GOING TO BE THOSE WHO NEED THE TAIL -- YOU NEED TO TAILOR THE AIRPORT TO. I WILL GO OVER QUICKLY THE DIFFERENT TYPES OF FUNCTIONS, THIS IS REALLY AIR CARGO AIRPORT TYPES, LOCAL MARKET STATION, HUB, INTERNATIONAL GATEWAY. LOCAL MARKET STATION IS JUST GOING TO SERVE THE SURROUNDING MARKET AREA. YOU ARE NOT GOING TO GET TOO MUCH FREIGHT IN AND OUT OF THERE AS YOU WOULD WITH A HUB, WHERE A HUB WILL CONSOLIDATE AND DISTRIBUTE NETWORK FLOWS. ESSENTIALLY, A HUB CAN OPERATE INDEPENDENTLY OF THE LOCAL MARKET AREA BECAUSE SO MUCH FREIGHT IS MOVING IN AND THE AIRPORT FROM OTHER AREAS. INTERNATIONAL GATEWAY SIMPLY WILL CONSOLIDATE AND PROCESS INTERNATIONAL MATERIAL. THAT IS A KEY FACTOR FOR ANY MULTINATIONAL COMPANY OR MANUFACTURING OPERATION THAT NEEDS ACCESS TO INTERNATIONAL MARKETS. THE LOCATION FACTORS WILL CHANGE, BASED UPON WHAT TYPE OF AIR CARGO CARRIER IS GOING TO LOCATE THERE. FOR EXAMPLE, IF YOU GO FOR AN INTEGRATED EXPRESS CARRIER, IF YOU WILL FIND THAT THAT WILL BEST SERVE YOUR MARKET, YOU UNDERSTAND THE CATCHMENT THERE IS VERY SMALL, ONLY 100 MILES AWAY FROM THE AIRPORT, FREIGHT MOBILITY WITHIN THAT AREA IS KEY, BECAUSE MOST, BEYOND YOUR INTERSTATE HIGHWAYS, THE MARKET AREAS ARE TITLE DEFINED AND YOU NEED TO LOCATE THE AIRPORT NEAREST THE LARGEST CONCENTRATION OF CUSTOMERS. THERE IS REALLY NO ROOM OF ERROR IN TERMS OF DRIVE TIME TO AND FROM THE AIRPORT, YOU NEED TO GET THEM TO AND FROM, EXPRESS OPERATION, YOU NEED TO GET THEM THEM TO AND FROM CUSTOMERS VERY QUICKLY. IF YOU DISCOVERED THAT A FREIGHT FORWARD ERROR ALL CARGO CARRIER, WHICH MAINLY SERVES THE WHOLESALE MARKET OF LARGE LARGE MANUFACTURER SINCERELY PROBABLY THE BEST OPTION FOR YOUR MARKET AREA. THE CATCHMENT AREA THERE IS VERY LARGE, THEY HAVE MORE TIME. THE TIME IS NOT AS CRITICAL TO THEM AS IT IS TO THE HE CAN PRESS. THEY CAN TRUCK UP TO 600 MILES AWAY. ESSENTIALLY THE REGION THAT WILL SERVED BY THIS AIRPORT IS MUCH, MUCH LARGER. YOU CAN HAVE COMPETING AIRPORTS SERVING A GENERAL CATCHMENT AREA WHICH IS GENERALLY NOT THE CASE WHEN YOU ARE TALKING EXPRESS, AIRPORT EXPRESS OPERATIONS. THE NETWORKS, THOUGH, FOR FREIGHT FORWARDERS AND AIR CARGO CARRIERS ARE VERY FLUID. THEY MOVE, THEY MOVE BASED UPON THE LOCATIONS OF THEIR CUSTOMERS. THEY CAN OPEN UP AN OPERATION AND SHUT IT DOWN BASED STRICTLY UPON A SINGLE CLIENT WITHIN AN AREA. SO, THAT NEEDS TO BE TAKEN INTO ACCOUNT WHEN DEVELOPING A FACILITY THAT YOU COULD HAVE A LOT OF MOVEMENT WITHIN THE NETWORKS. NOW, AS I MENTIONED EARLIER, THE CRITICAL MASS AND ANCHOR TENANT ARE KIND OF INTERDEFINED -- INTERTWINED. FIRST LET ME TELL YOU WHAT ANCHOR MEANS, ANCILLARY SUPPORT OF AIR CARGO OPERATIONS. ESSENTIALLY THERE ARE MANY DIFFERENT OPERATIONS, PEOPLE AND THINGS THAT NEED TO TAKE PLACE AT AN AIR CARGO AIRPORT TO MAKE IT OPERATE. FIRST OFF IS INTERSTATE FUNCTION AND PROCESS AND ACCESS, THAT IS IMPORTANT IMPORTANT FOR PEOPLE TO KNOW WHEN THEY ARE WORKING WITH THE AIRPORT AUTHORITIES. AN AIR CARGO AIRPORT CANNOT BE SUCCESSFUL UNLESS IT HAS EASY DIRECT ACCESS TO INTERSTATE HIGHWAYS. RARELY AIR CARGO HAVE ANY TRANSFER WITH RAIL. IT IS STRICTLY 100% TRUCK TRANSFER. YOU ALSO NEED DISTRIBUTION, MISSOURI -- INTERMODAL FACILITIES, TRUCKING, GROUND OPERATIONS, INTERNATIONAL GATEWAY, CUSTOMS, TYPICALLY, THIS IS THIS IS AN EVOLUTIONARY PROCESS, UNLESS YOU CAN SECURE AN ANCHOR TENANT. AN ANCHOR TENANT WILL JUMP START THE NECESSARY CRITICAL MASS, AND WHAT DO I MEAN WHEN I SAY ANCHOR TENANT? AN ANCHOR TENANT IS A SINGLE AIRPORT USER THAT CAN INITIATE AND DRIVE FACILITY USAGE. IT HAS TO BE EATERER A SHIPPER OR AN AIR CARGO OPERATOR THAT IS LARGE ENOUGH TO BRING WITH IT THE NECESSARY CRITICAL MASS TO JUMP START THE WHOLE PROCESS. FEDEX IS THE GOLD STANDARD OF ANCHOR TENANTS. IF YOU CAN GET A FEDEX TO MOVE IN, THEY BRING THEIR CRITICAL MASS WHEN THEY COME TO AN AIRPORT. THEY BRING ALL THE HANDLING, AIRCRAFT, TRUCKERS, THEY BRING EVERYTHING TO GET IT GOING, FROM THERE THE ANCILLARY SERVICES MOVE AROUND TO TAKE ADVANTAGE OF THE BUSINESS THAT THEY GENERATE. ALSO, AN ANCHOR TENANT CAN BE A MANUFACTURER OR A DISTRIBUTOR. IF YOU HAVE A NATIONAL DISTRIBUTION CENTER THAT MOVES INTO A LARGE MANUFACTURER SUCH AS THE -- IN THE PREVIOUS PRESENTATION, TALKED ABOUT AN AUTOMOTIVE MANUFACTURING CLUSTER. THAT CAN SERVE AS AN ANCHOR TENANT IF THEY UTILIZE THE LOCAL AIRPORT. INTERNATIONAL INTERNATIONAL MANUFACTURERS CAN DO THE SAME IF THEY HAVE A LOT OF DEMAND FOR INTERNATIONAL AIR CARGO. I AM GOING TO GO OVER A FEW SUCCESSFUL AIR CARGO AIRPORTS AND LET YOU KNOW HOW THEY STARTED, WHAT WHAT THEIR TARGET WAS, WE WILL START OFF WITH ALLIANCE JUST OUTSIDE OF DALLAS. THAT WAS DEVELOPED AS A BRAND NEW AIRPORT FOR AIR CARGO AND ASSOCIATED MANUFACTURING THAT WOULD HAVE A USE FOR AIR CARGO. THEY SECURED, LIKE I SAID, THE GOLD STANDARD OF ANCHOR TENANTS. THEY GOT FEDEX TO LOCATE A REGIONAL HUB THERE. FROM THERE, THEY WERE VERY SUCCESSFUL IN ATTRACTING ADDITIONAL MANUFACTURING OPERATIONS AND DISTRIBUTION FACILITIES THAT COULD TAKE ADVANTAGE OF FEDEX. NOW, RICKENBACKER IN COLUMBUS, OHIO, ESSENTIALLY USED THE OPPOSITE WAY OF ATTRACTING ACTIVITY. THEY DEVELOPED THE AIRPORT FROM AN OLD AIR FORCE BASE, AND THEIR INITIAL ANCHOR TENANT WAS THE LIMITED CLOTHING COMPANY, WHICH USED RICKENBACKER AS THEIR NATIONAL DISTRIBUTION CENTER, AND FROM THERE THEY ATTRACTED THE AIR CARGO TO SUPPLY THEIR REQUIREMENTS. ESSENTIALLY WHAT THEY DO IS MANUFACTURE ALL OF THEIR CLOTHING ITEMS OVERSEA, THEY FLY THEM IN OVERSEAS AND THEN THEY DISTRIBUTE THROUGH RICKENBACKER VIA TRUCK. HUNTSVILLE, ALABAMA WAS ORIGINALLY AN AIRPORT WITH COMMERCIAL SERVICE. THEY EXTENDED THEIR RUNWAY TO ATTRACT INTERNATIONAL AIR CARGO. THEY USED A IF YOU BUILD IT THEY WILL COME APPROACH. THEY WENT OUT AND BUILD IT BEFORE THEY HAD AN ANCHOR AND WENT OUT TO GET ONE, THEY FOUND FOUND A EUROPEAN FORWARDER WHICH DECIDED TO MAKE HUNTSVILLE AS A GATEWAY FOR ALL EUROPEAN PRODUCT COMING INTO THE U.S. IT IS A GATEWAY AND HUB. WILMINGTON AIRPORT IN OHIO WAS BUILT SPECIFICALLY FOR AIRBORNE EXPRESS AND WAS AND IS STILL USED AS THEIR INTERNATIONAL HUB FOR EXPRESS. THIS IS A CASE WHERE, VERY CASE WHERE THE ANCHOR TENANT WENT IN AND BUILT THEIR OWN AIRPORT. IT WAS ALL DONE IN HOUSE. THERE IS ONE RIGHT NOW THAT IS CURRENTLY UNDER DEVELOPMENT. THEY DON'T HAVE YET TO THE -- A FEW, ON SOUTHERN CALIFORNIA, CONVERTED AN OLD AIR FORCE BASE. THEY HAVE YET TO SECURE AN ANCHOR TENANT, BUT THEY ARE STILL DEVELOPING AIR CARGO AT THE SAME TIME, BECAUSE THEY ARE FEEDING OFF OF THE LAX REGION, WHERE THERE ARE CONSTRAINT -- CONSTRAINED AIRPORTS AND THEY ARE GETTING SOME OF THAT OVERFLOW. NOW THERE ARE SOME UNSUCCESSFUL ONES, ONE THAT POPS TO MIND IS NORTH CAROLINA, NORTH CAROLINA GLOBAL TRANSPARK WHICH WAS BUILT IN AN AREA THAT LACKED ANY POPULATION OR INDUSTRIAL CENTERS, THAT LACKED ANY INTERSTATE ACCESS AND WAS A VERY ECONOMICALLY DEPRESSED REGION. THE REASON IT WAS BUILT THERE WAS TO ACT AS A SPUR TO SPUR ON ECONOMIC DEVELOPMENT. YOU CAN'T GO TOO FAR IN THE MIDDLE OF NOWHERE AND HOPE TO SPUR DEVELOPMENT. THERE HAS TO BE SOME SORT OF SPARK THERE TO GET THE BALL ROLLING, THE ABSENCE OF ANY ANCHOR TENANT FOR THIS AIRPORT OR ANY SURROUNDING ACTIVITY, MARKET ACTIVITY IN TERMS OF POPULATION CENTERS OR STILL CENTERS HAS NOT WORKED OUT. IT HAS BEEN AN ONGOING BATTLE FOR ABOUT 10 YEARS. SO FAR THEY HAVEN'T FOUND MUCH SUCCESS. IF YOU DO BUILD A FACILITY AND TRYING TO ATTRACT AIR CARGO SERVICE, SUPPLY OF AIR CARGO, YOU TO MARKET THE LOCATION. YOU DON'T NECESSARILY MARKET WHAT THE AIRPORT HAS TO OFFER, BUT WHAT THE LOCATION ITSELF HAS TO OFFER. AIR CARGO CARRIERS HAVE TO OPERATE FROM AIRPORTS WITHIN THEIR CUSTOMERS, SO YOU HIGHLIGHT THE LOCAL AND REGIONAL CUSTOMER BASE, CRITERIA, DEPENDENT UPON THE TYPE OF CARRIER, THE INTEGRATED EXPRESS, THEY NEED TO BE VERY, VERY CLOSE TO THE MARKET AREA, IF IT IS A FREIGHT FORWARDER, ALL CARGO CARRIER, YOU HAVE A LARGER MARKET AREA WITHIN THE LARGER MARKET AREA. REMEMBER, AIRPORT QUALITY IS SECONDARY TO THE LOCATION, YOU SELL THE LOCATION, YOU MAKE THE AIRPORT. YOU CAN MAKE THE NECESSARY UPGRADES TO THE AIRPORT BUT YOU CAN'T REALLY CHANGE THE QUALITY OF THE LOCATION. WHAT ARE THE MARKETABLE BENEFITS OF AIR CARGO IF YOU HAVE THE FACILITY YOU ARE TRYING TO DEVELOP AND YOU CAN TRACK THE FACILITY. WELL, IT IS COST, TIME AND RELIABILITY. AND YET INCREASED FREIGHT CAN I HAVE CAN I HAVE, -- CONNECTIVITY, TO YOUR AIRPORT. IF SOMEONE IS TRUCKING TO A FACILITY 200 MILES AWAY, YOU CAN OFFER THEM 50 MILES AWAY, 20 MILES AWAY, THOSE ARE GREAT SAVINGS IN TERMS OF TRUCKING COSTS. THERE WILL BE ACCESS TO NEW MARKETS, JUST IN TIME THAT IS NOT AVAILABLE IF YOUR AIR CARGO FACILITY IS LOCATED A LONG DISTANCE, ENHANCED DISTRIBUTION AND EFFICIENCY OPTIONS. THESE ARE ALL THINGS THAT IN AIR CARGO CAN BE MARKETED AS A RESULT OF AN AIR CARGO FACILITY. WHAT ARE THE TARGET INDUSTRIES YOU ARE GOING TO GO AFTER? THIS IS KEY. THIS IS NOT, INDUSTRY THAT PRODUCED HIGH VALUE PRODUCTS, SHORT LIFE CYCLES, HAVE JIT OPERATIONS, AND THESE, AS I MENTIONED EARLIER, THE END TO BE INDUSTRIES THAT ARE HIGH PAYING, DESIRABLE INDUSTRIES, AERONAUTICS, COMPUTERS, PHARMACEUTICALS, ISHABLES, TELECOMMUNICATIONS RANK AS THE HIGHEST USERS OF AIR CARGO SERVICES, THESE AGAIN ARE DESIRABLE INDUSTRIES FOR YOUR REGION. FINALLY, THE ULTIMATE GOAL, IT GOES BEYOND JUST THE FACILITY ITSELF AND ITS OPERATIONS. YOU, THE ULTIMATE GOAL IS TO INCREASE YOUR COMPETITIVENESS, VIA INCREASED FREIGHT CONNECTIVITY, EFFICIENT ACCESS TO MARKETS, AN AIR CARGO FACILITY, WITHIN YOUR REGION, WILL PROVIDE A COMPETITIVE ADVANTAGE TO ANY ECONOMIC DEVELOPMENT EFFORTS. IT'S A PLUS THAT A LOT OF INDUSTRIES LOOK FOR AND REQUIRE WHEN THEY ARE SEEKING TO EXPAND SOMEWHERE. IT IS A MARKETING TOOL FOR ATTRACTING NEW BUSINESSES. IF YOU WORK WITH ECONOMIC AGENCIES OR CHAMBERS OF COMMERCE, THIS WILL BE SOMETHING THAT THEY CAN MARKET WHEN THEY GO OUT AND SEEK TO ATTRACT NEW BUSINESS. AS I MENTIONED A FEW TIME, MOST AIR CARGO INTENSIVE INDUSTRIES, EXHIBIT DESIRABLE ECONOMIC ECONOMIC CHARACTERISTICS. THESE ARE THE ONES YOU WANT IN YOUR REGION TO TAKE ADVANTAGE OF AN AIR CARGO INDUSTRY. WITH THAT, I AM DONE.


JENNIFER SEPLOW:

THANK YOU, MATT. AND, AGAIN, FOR EVERYBODY WHO POSTED QUESTIONS. I HOPE EVERYBODY FOUND THESE PRESENTATIONS INTERESTING. I AM GOING TO START OFF WITH SOME OF THE QUESTIONS POSTED IN THE CHAT AREA, THEN WE WILL OPEN UP THE PHONE LINES TO QUESTIONS. MATT, SINCE YOU JUST ENDED, I AM GOING TO START WITH YOUR QUESTIONS FIRST, SINCE WE ARE STILL ON THE AIR CARGO TOPIC.


OKAY.


WE HAVE A QUESTION. HOW DO YOU QUANTIFY THE MULTIPLIER EFFECT WHEN DOING YOUR INITIAL MARKET ANALYSIS?


MATT PREISLER:

THAT IS VERY DIFFICULT. YOU WILL HAVE TO GO FROM HISTORIC, ESSENTIALLY HISTORIC TRENDS, WHAT YOU CAN ANTICIPATE ATTRACTING, TO THE AREA BASED UPON, YOU KNOW, WHAT DEVELOPMENT YOU ARE SEEKING, AND AS FAR AS THAT YOU USE GENERAL ECONOMIC MULTIPLIERS BASED ON, I GUESS -- I WILL HAVE TO TURN THAT OVER TO THE . BUT -- COMMON -- THE . BUT ESSENTIALLY HISTORIC TRENDS AND FACILITIES. AND FROM THERE WHAT IS MOST LIKELY FEASIBLE TO HAPPEN DURING PLANS, YOU DEVELOP A HIGH, LOW AND MEDIUM FORECAST BASE UPON THEIR INDUSTRY, YOU HOPE TO ATTRACT AIR VOLUMES, AIR CARGO, FACILITY, AND THEN FROM THERE YOU WILL MAKE YOUR ASSESSMENTS.


THANK YOU. I GUESS MARTIN OR GLEN, DO YOU HAVE ANY INPUT ON THAT?


LET GLEN GO FIRST.


GLEN WEISBROD:

I JUST WANTED, I THINK WHAT WAS SAID IS EXACTLY RIGHT. THERE ARE ECONOMIC MULTIPLIER MODELS, BUT WHAT YOU REALLY WANT TO DO HERE IS NOT LOOK AT WHETHER THE SPINOFF OF AN AIRPORT IS SUCCESSFUL IT IS WHETHER WHAT YOU ATTRACT WILL MAKE IT SUCCESSFUL, SO I THINK WHAT MATT SAID IS EXACTLY THE RIGHT WAY TO APPROACH IT.


THANK YOU.


MARTIN WEISS:

I WILL GO ALONG WITH THAT. THERE IS A SITE AT THE STANDARD OF -- I THINK AT THE DEPARTMENT OF COMMERCE WHICH GIVES MULTIPLIERS, CODE.


THE THING TO KEEP IN MIND ON ECONOMIC DEVELOPMENT, MULTIPLIERS ARE IF YOU ARE SUCCESSFUL AT ATTRACTING BUSINESS, HERE IS A SPINOVER -- SPINOFF. BUT THE QUESTION WE ARE ALL ASKING IS IF YOU BUILD TRANSPORTATION FACILITIES, WHAT ARE YOU LIKELY TO ATTRACT. SO THE ATTRACTION IS NOT WILL THE ISSUE ISSUE SPIN OFF, IT IS WHETHER YOU ARE LIKELY TO BE ATTRACTING IN THE FIRST PLACE.


OKAY.


THANK YOU.


WE NOW HAVE A QUESTION, WE WILL GO BACK TO GLEN'S PRESENTATION, AND THE QUESTION WAS, ON GLEN'S THIRD SLIDE, FREIGHT VERSUS POPULATION GROWTH, WHAT IS THE DATA SOURCE? I WILL PUT THAT SLIDE UP RIGHT NOW.


GLEN WEISBROD:

I DON'T HAVE IT ALL WITH ME RIGHT NOW. IT CAME FROM THE VALUE OF MANUFACTURING WAS FROM BEA. THE FREIGHT TON MILES WAS, I THINK, WAS FROM BUREAU OF TRANSPORTATION STATISTICS, THIS WAS ALL MODES, NOT JUST SURFACE.


THANK YOU


GLEN WEISBROD:

IF ANYONE HAS SPECIFIC INFORMATION, THEY CAN CONTACT ME OR E-MAIL ME. I WILL BE GLAD TO GET THE EXACT INFORMATION. THIS IS ACTUALLY PART OF THAT NCHRP STUDY, WHEN IT COMES OUT IN ABOUT A YEAR, IT WILL HAVE THE FULL DOCUMENTATION OF THIS. BUT I AM GLAD TO TELL PEOPLE IN THE MEANTIME.


I WILL PUT BACK UP THE INTRODUCTION SLIDE, THAT HAS ALL OF THE PRESENTER E-MAIL ADDRESSES ON IT.


ANOTHER QUESTION, GLEN, WHO WAS THE LEAD ON THE CHICAGO STUDY?


GLEN WEISBROD:

THE LEAD IN THE CHICAGO STUDY WAS REBBIE ASSOCIATES, A CONSORTIUM OF FIVE FIRMS LED BY REEBIE ASSOCIATES FOR THE CITY OF CHICAGO. THE WEB LINK WE HAVE THERE LINKS TO THE CITY OF CHICAGO THAT GIVES THE REST THE INFORMATION FOR IT. THE REPORT HAS JUST BEEN ISSUED BY THE CITY CITY BY THE WAY. IF PEOPLE ARE MORE INTERESTED, THEY CAN CONTACT THE CITY OF CHICAGO DEPARTMENT OF TRANSPORTATION.


OKAY. THANK YOU.


THE NEXT QUESTION, I THINK YOU MAY HAVE SAID NOT YET AVAILABLE BUT THE QUESTION IS WHERE CAN WE FIND A COPY OF THE NCHRP 8-42?


GLEN WEISBROD:

YES, THAT IS NOT AVAILABLE YET. THE BEST THING PEOPLE CAN DO IS GO TO THE NCHRP WEBSITE WHERE THERE ARE UPDATES ON WHEN THESE, ON THE STATUS OF THESE PROJECTS PROJECTS AND WHEN THEY WILL BE COMING OUT BUT AGAIN I AM A CO-PRINCIPAL INVESTIGATOR. PEOPLE CAN FEEL FREE TO CONTACT ME AND I CAN LET THEM KNOW.


THANK YOU. WE HAVE ANOTHER QUESTION FOR YOU, GLEN. I-66 EXAMPLE, WHAT MANUFACTURING GROWTH JOBS WERE THERE AS OPPOSED TO OTHER JOB GROWTH AREAS SHOWING DECLINE?


GLEN WEISBROD:

IF YOU LOOKED AT THE STATISTICS, LET'S SEE, I THINK THE STUDY LOOKED AT THREE LEVELS, IT IT LOOKED AT WHAT WAS LOCATING NEXT TO THE HIGHWAY, COMMUNITIES NEXT TO THE HIGHWAYS AND WHAT WAS LOCATING IN THE COUNTIES THAT THE HIGHWAY WENT THROUGH THE MIDDLE OF. I BELIEVE THAT THE SPECIFIC SPECIFIC CHART SHOWN SHOWN IS FROM THE COUNTY LEVEL. I THINK THAT WAS COUNTY BUSINESS PATTERNS, IF YOU LOOKED AT THE TREND OF THE STATE, AND COMPARABLE AREA, YOU SEE THE DIFFERENCE IN THE TRENDS, IT WOULD LEAD ONE TO SAY THAT THIS AREA GREW WHERE OTHERS DIDN'T GROW. IN WESTERN -- WOULD BUSINESS BUSINESS LOCATED IN WESTERN NEW YORK HAVE LOCATED IN OTHER PART OF NEW YORK, PENNSYLVANIA, EUROPE OR SOUTH AMERICA, WE DON'T KNOW.


THANK YOU.


GLEN WEISBROD:

THE THING THAT THAT TO KEEP IN MIND, BUSINESS LOCATION ATTRACTION IS NOT ZERO SUM GAIN, IF IT WOULD HAVE BEEN HERE OR SOMEWHERE ELSE. BUSINESSES PICK THE BEST LOCATION THERE IS. UNLESS, SHORT OF DOING WHAT IS -- S BY WAY OF INCENTIVES, IF YOU ARE IMPROVING THE TRANSPORTATION EFFICIENCY, THAT ATTRACTS BUSINESSES, HIGHER PRODECK ACTIVITY AND THAT IS A HIGHER PRODUCTIVITY GAIN FOR THE COUNTRY.


MAY I INTERJECT SOMETHING?


GO AHEAD.


MARTIN WEISS:

ONE REASON THE FEDERAL HIGHWAY ADMINISTRATION TRIES TO DO STUDIES IN AREAS THAT ARE ECONOMICALLY DISPRESSED -- AS GLEN SAYS, IT IS NOT A ZERO SUM GAIN, THERE ARE PROBABLY NEW JOBS ANY WAY. EVEN IF THERE ARE SOME JOBS MOVED FROM ONE PLACE TO ANOTHER PLACE, IF THEY MOVE TO A COUNTY THAT IS ECONOMICALLY DISTRESSED, THAT IS OF SOME VALUE TO THE UNITED STATES, EVEN IF THERE ARE NO NEW JOBS CREATED. EVEN IN THAT CASE, THERE IS STILL SOME NATIONAL BENEFIT TO IT.



MATT, I WANT TO GIVE YOU A CHANCE IF THERE IS ANYTHING YOU WANT TO ADD AS WELL?



NO, THANK YOU.


OUR NEXT QUESTION IS FOR MARTIN. FOR ECONOMICALLY CONSTRAINED RURAL AREAS, THEY ARE ALREADY CHALLENGED TO MEET THEIR EXISTING INFRASTRUCTURE REQUIREMENT. THERE IS LITTLE OR NO MONEY FOR PLANNING. WITHOUT ADEQUATE INFRASTRUCTURE PLANNING, IT'S NEARLY IMPOSSIBLE TO GET ANY OF THE ECONOMIC DEVELOPMENT BALLS ROLLING. IF A RURAL AREA IS NOT ALREADY DESIGNATED AS AN ENTERPRISE COMMUNITY, WHAT TYPES OF FEDERAL SUPPORT SUPPORT PROGRAMS ARE AVAILABLE TO HELP FEED THE PLANNING PROCESS?


MARTIN WEISS:

WELL, THE ANSWER TO THAT IS PRETTY COMPLICATED. THERE ARE A LOT OF SOURCES, I GRANT YOU IT IS A TROUBLE TO FIND ONE. SOMETIMES YOU CAN FIND A FUNDING SOURCE IN THE ARC, APPALACHIAN REGIONAL AREA THAT GLEN WAS TALKING ABOUT, THEY HAVE THEIR OWN FUNDING RESOURCES. ALSO, THE DELTA REGIONAL AUTHORITY HAS FUNDING RESOURCES, THE ECONOMIC DEVELOPMENT ADMINISTRATION SIMILARLY HAS RESOURCES AND OF COURSE IN MANY AREAS, INCLUDING RURAL, THEY HAVE ACTUALLY FOUND MONEY IN THE FEDERAL HIGHWAY ADMINISTRATION THROUGH THE DISCRETIONARY PROGRAMS, TCPP AND NCPD/CBI, I WON'T TELL YOU WHAT THE ACRONYMS STAND FOR, BUT DESIGNATED BY CONGRESS. IN REALTY WHAT THEY DO IS GOING TO CONGRESS -- OR TO THE SENATOR, SAYING GIVE ME SOME MONEY. ANOTHER WAY OF DOING IT IS GOING TO THE STATE. I RECALL IN ALABAMA WHERE WE WERE DOING A STUDY, ONE COUNTY WHEN WE STARTED DOING OUR STUDY, THEY HAD NOT GONE AS FAR AS HAVING A MAP WHERE THEY WOULD DEVELOP AREAS, WATER, , ELECTRICITY, -- ELECTRICITY, THAT SORT OF STUFF. WHEN THEY FOUND OUT WE WERE DOING OUR THING, THEY GOT TOGETHER WITH THE STATE. THE STATE PROVIDED THE MONEY AND THEY PRETTY QUICKLY DEVELOPED THE MAP THAT WAS NECESSARY FOR THAT UNFORTUNATELY, IT IS NOT ONE-STOP SHOPPING. THERE IS A WHOLE LOT OF PLACES THAT YOU WILL GET YOUR MONEY FOR PLANNING.

.


THANK YOU.


MATT PREISLER:

IF I COULD JUMP IN, I KNOW AS FAR AS AVIATION INFRASTRUCTURE PROJECTS, A LOT OF FUNDING IS AVAILABLE THROUGH THE FAA. THERE ARE CURRENT LIP 19 STATE THAT IS RECEIVE THEIR FAA FUNDING THROUGH LOCK GRANTS RELATED TO STATE DOT NUMBERS, THAT NUMBER WILL WILL GO FROM 18 TO 25 IN THE NEXT COUPLE OF YEARS. IF YOU ARE LOOKING FOR MONEY AVIATION-RELATED OR AIRPORT- RELATED INFRASTRUCTURE PROJECT, A LOT OF THE STATES, YOU CAN GO STRAIGHT TO THE STATE DOT. THEY WILL ALLOCATE FEDERAL FUNDS TO THE BLOCK GRANTS. AS GLEN MENTIONED TOO, A LOT OF THE FACILITIES GET FUNDED THROUGH THE PROJECT. THEY NEED TO FUND IT AND GO TO THE BOARD AND THEY WILL GET EXTRA FUNDING FOR US ALSO.


THANK YOU. THAT'S TALL QUESTIONS WE HAVE POSTED IN THE CHAT AREA. SOME PEOPLE HAVE HAVE SENT ME LITTLE TIDBITS OF INFORMATION HERE. IT LOOKS LIKE IT SENT TO ME. IF YOU WANT TO SEND IT EVERYBODY, PLEASE GO AHEAD AND DO SO. I HAVE JUST CHANGED THE SEGMENT. YOU SHOULD BE ABLE TO DO THAT NOW. AT THIS POINT, I THINK WE SHOULD OPEN UP THE UP THE PHONE LINES AND SEE IF ANYBODY HAS ANY QUESTIONS ON THE PHONE.


OPERATOR:

THANK YOU. LADIES AND GENTLEMEN, IF YOU WOULD LIKE TO TO REGISTER FOR A QUESTION, PLEASE PRESS 1 FOLLOWED BY 4 ON YOUR TOUCHTONE PHONE. IF YOUR QUESTION HAS BEEN ANSWERED AND YOU WOULD LIKE TO WITHDRAW YOUR REGISTRATION, PRESS THE 1 FOLLOWED BY THE 3. I WOULD ALSO LIKE TO REMIND EVERYONE THAT YOU WILL -- WE WILL BE ABLE TO ACCESS YOUR LINE TO OBTAIN PERTINENT INFORMATION. IF YOU WOULD LIKE TO ASK A QUESTION, PLEASE PRESS THE 1 FOLLOWED BY THE 4. IT APPEARS WE DO HAVE A QUESTION. IT WON'T BE MUCH LONGER. THANK YOU. OUR FIRST QUESTION COMES FROM THE LINE OF, I BELIEVE, MR. RUEBEN -- I'M SORRY, LOUIS RUBINSTEIN. GO AHEAD, SIR, YOUR LINE IS OPEN.


WHAT DO YOU THINK THE IMPACT WILL BE ON DEVELOPING TRANSPORTATION, SECURITY, EXTRA SECURITY PRECAUTIONS WILL COST?


MARTIN, WE WILL GO AHEAD AND START WITH SINCE YOU ARE IN THE ROOM NOW.


MARTIN WEISS:

YOU KNOW, I THINK IT IS CLEAR IN THE LAREDO CASE, THAT AT LEAST INITIALLY, THERE WAS A DECREASE IN PRODUCTIVITY BECAUSE OF THE NEED FOR MORE INSPECTIONS AT THE BORDER. HOWEVER, I THINK AS THE TECHNOLOGY OF DOING THE INSPECTIONS AND OF THE PROCEDURES AND SO FORTH IMPROVES, IT SHOULD BE LESS AND LESS AND SOME DAY, WHO KNOWS, IT MIGHT EVEN GET INTO A PLUS COLUMN, GOD WILLING.


GLEN, DO YOU HAVE ANY INPUT ON THAT?


GLEN WEISBROD:

THINK IT'S WHAT MARTIN SAID, BUT, YOU KNOW, IT IS A MATTER OF COST OF THE DELAY. I THINK THERE ARE MANY INITIATIVES BEING TAKEN NOW TO ADDRESS THAT.


MATT?


MATT PREISLER:

WELL, IN TERMS OF AIR CARGO OPERATIONS, THE IMPACT COULD BE DEVASTATING DEPENDING ON THE LEVEL OF SECURITY THAT IS REQUIRED. RIGHT NOW, NO CARGO SCREENING IS REQUIRED OF AIR CARGO GOING ON EITHER PASSENGER OR AIR CARGO AIR PLANES. THERE'S TALK THAT SOME OF, THAT 100% OF AIR CARGO MIGHT HAVE TO BE SCREENED ON COMMERCIAL ONLY, WHICH WILL BE PASSENGER CARRIERS OR ALL CARGO CARRIERS. IF THAT IS BANNED, -- IMPLEMENTED THAT WOULD VIRTUALLY BAN ALL AIR CARGO CARRIERS AND THAT WOULD IMPACT 15 TO 20% OF THEIR REVENUES, SO THAT WOULD BE A HUGE IMPACT RIGHT THERE. AND EXPRESS CARRIERS, WHICH HAS BEEN KICKED AROUND CONGRESS A BIT, 100% OF AIR CARGO CARRIERS BE SCREENED, THAT COULD ESSENTIALLY SHUT DOWN THE AIR EXPRESS INDUSTRY. I DON'T KNOW IT WILL GO THAT FAR. THE POTENTIAL IS THERE FOR THERE FOR DIRE CONSEQUENCES. AS OF NOW, NOTHING CONCRETE HAS BEEN DONE, SO, STILL KIND OF WAITING.


THANK YOU.


THANK YOU. CONTINUING ON, OUR NEXT QUESTION COMES FROM THE LINE OF MR. HERBERT OF WILBUR SMITH ASSOCIATES. PLEASE GO AHEAD, SIR.


HELLO, MARTY, THIS IS ROB WITH WILBUR SMITH. HOW ARE YOU TODAY? I HAVE A QUESTION. IN FLORIDA, THERE'S BEEN A LOT OF TALK AND A LOT OF LOOKING AT LAND USE JOINED WITH TRANSPORTATION AND INFRASTRUCTURE, TO LOOK AT HUBBING AREAS WHERE YOU COULD ACTUALLY TARGET TRANSPORTATION INFRASTRUCTURE TO CREATE THE HUBS THAT YOU WANT TO CREATE FOR ADDED VALUE-TYPE INDUSTRIES. WHAT IS YOUR TAKE ON THAT, AND DO YOU SEE THAT AS BEING A POTENTIAL FUTURE WAY OF MAYBE CREATING ADDED-VALUE INDUSTRY AND TRANSPORTATION GUIDANCE IN THE FUTURE?


MARTIN WEISS:

WELL, FLORIDA IS AN INTERESTING CASE, BECAUSE LAST I CHECKED THEY STILL HAD LAWS, I THINK THEY STILL HAVE THEM, WHICH REQUIRES FOR CERTAIN KINDS OF DEVELOPMENT, THERE HAS TO BE A GUARANTEE THAT THE INFRASTRUCTURE WILL BE THERE, AND THAT CONCURRENCY REQUIREMENT DOES A LOT OF THINGS. ONE OF THE THINGS IS IT FORCES ANY DEVELOPER WHO REALLY WANTS TO DEVELOP TO START WORKING, CHEEK BY JOWL WOULD BE DESCRIPTIVE, WITH THE LOCAL GOVERNMENT. FLORIDA IS ALSO UNIQUE IN THAT MANY, MANY COUNTIES HAVE THEIR OWN FUNDING RESOURCES FOR THEIR OWN INFRASTRUCTURE, THROUGH A LOCAL GAS TAX, OR IN SOME CASES OTHER WEIRD FEES AND SO FORTH AND SO ON, I THINK IT IS BECAUSE OF THOSE THINGS, I THINK IT IS REALLY HARD TO EXTRAPOLATE THE FLORIDA EXPERIENCE TO THE REST OF THE COUNTRY. BUT, YOU KNOW, WITHOUT GETTING TOO DEEP INTO IT, I CAN SAY THAT THE MORE INDUSTRY AND LOCAL INDUSTRY TALK TOGETHER AND TRY TO, YOU KNOW, HAVE BASICALLY BOTH THEIR MAPS AGREE ON WHERE THEY WANT THE HUB OF ACTIVITY AND WHERE THEY WANT THE HUB OF TRANSPORTATION, I MEAN, THAT CAN ONLY BE TO THE GOOD.


THANK YOU VERY MUCH, MARTY.


THANK YOU. ONCE AGAIN, LADIES AND GENTLEMEN, AS A REMINDER, PLEASE PRESS THE 1 FOLLOWED BY THE 4 TO REGISTER. MS. SEPLOW, IT APPEARS THAT THERE ARE NO FURTHER QUESTIONS FROM THE AUDIENCE. I WILL RETURN THE PRESENTATION TO YOU ONCE AGAIN.


THANK YOU. AT THIS POINT, IF WE HAVE NO OTHER QUESTIONS, I GUESS I WILL TURN IT BACK TO GLEN, MARTIN, IF YOU HAVE ANY FURTHER CLOSING REMARKS. DO YOU HAVE ANYTHING YOU WOULD LIKE TO ADD?


MATT PREISLER:

NO, I THINK THESE ARE EXCELLENT COMMENTS, NOTHING TO ADD.


GLEN?


GLEN WEISBROD:

NO, NOT REALLY, I DO SEE A CHAT THING HERE, AIR MARKET ANALYSIS APPLICABLE TO RAIL AND TRUCK TO TRUCK DEVELOPMENT STRATEGIES, AND I THINK THAT'S TRUE. I THINK THE SAME APPROACH COULD BE TAKEN ON ANY INTERMODAL FACILITY WHETHER IT BE TRUCK, RAIL OR SEA PORT, DEMAND AND THE MARKET, WHICH I THINK EVERYONE CONSIDERS AS KEY BUT WHAT WE ALSO LIKE TO STRESS THAT YOU UNDERSTAND WHO THE SUPPLIER OF THE SERVICES IN THE MARKET WILL BE, BECAUSE ULTIMATELY FOR WHATEVER FACILITY THEY ARE, YOU ARE BUILDING YOUR ULTIMATE CUSTOMER. THAT IS ALL I HAVE TO SAY?


MARTIN WEISS:

THANK YOU. ONE OF THE QUESTIONS, I JUST HAPPENED TO SEE HERE, A PERCEPTION THAT FREIGHT MOVEMENTS ARE LONG DISTANCE, THERE IS NO BENEFIT TO THE LOCALS. I HAVE A LOT OF GOOD STORIES ABOUT THAT ONE, BUT, FIRST OF ALL, IT'S TOTALLY OBVIOUSLY FALSE, YOU KNOW, A LOT OF THE REASONS FOR THE TRUCKS, YOU SEE IN YOUR COMMUNITY IS BECAUSE THEY HAVE A TRIP END IN THEIR COMMUNITY. I MEAN, THEY ARE SERVING THE GROCERY STORE, THEY ARE SERVING SOMEBODY ELSE. LET ME SAY ONE INTERESTING THING ABOUT BENEFITS AND SO FORTH AND MAKING AN ILLUSTRATION. IN THE CASES WHERE THE ECONOMIC DEVELOPMENT IS TOURISM, ONE THING IS TO TRY TO HAVE ENOUGH TOURIST THINGS TO DO SO THEY STAY FOR A COUPLE OF DAYS, HOPEFULLY YOU GO IN, STOP, EAT AND YOU DO OTHER THINGS AND WHILE THEY ARE IN THE AREA THEY SPEND MONEY ON THE HOTELS, THE RESTAURANTS, SO FORTH. BUT EACH TIME THERE IS A TRANSACTION OR EACH TIME THERE IS A -- THAT IS A PURPOSE THAT IS PROVIDED TO LOCAL COMMUNITIES. NOW, I GUESS YOUR QUESTION PROBABLY IS HOW TO CONVINCE CITIZENS TO NOT BE ANTITRUCK. I HAVEN'T GIVEN YOU ANYTHING THAT WILL WORK 100% OF THE TIME; THERE ARE PRETTY MUCH GOING TO BE PEOPLE WHO ARE ANTI TRUCK. MY WIFE IS ANTI TRUCK, YOU KNOW, YOU CAN'T DO MUCH OF ANYTHING TO HELP PEOPLE WHO DON'T LIKE TRUCKS.


THE QUESTION WAS, WHAT ARE THE BEST STRATEGY INDICATORS FOR DEMONSTRATING TO LOCAL CITIZENS AND DECISIONMAKERS THAT FREIGHT ACTIVE ACTIVITY CAN ACTUALLY BE A COMMUNITY ASSET. IF EITHER ONE OF YOU WOULD LIKE TO ADD ANYTHING TO THAT, PLEASE, GO AHEAD.


GLEN WEISBROD:

YES, IT'S GLEN. I WOULD SAY THAT WHEN WE ARE TALKING TO COMMUNITIES, WE FIND THAT TALKING IN TERMS OF JOB CREATION IS, AND JOB RETENTION AND BUSINESS ATTRACTION, BUT IN TERMS OF BOTH FUNDAMENTAL JOBS, WHAT SEEMS TO PLAY BEST AS FAR AS LOCAL RESIDENTS UNDERSTANDING, THAT IS IN CONTRAST WITH WHEN WE ARE TALKING WITH STATE TRANSPORTATION ENGINEERS WHEN WE HAVE TO TALK ABOUT DOLLARS AND PRODUCTIVITY BENEFIT. SO THERE ARE TWO DIFFERENT WAYS OF MEASURING THIS DEPENDING ON WHO THE AUDIENCE IS.


MATT PREISLER:

I THINK AIRPORTS ARE ALWAYS A TOUGH SELL TO A LOCAL COMMUNITY, ESPECIALLY WHEN YOU START TALKING ABOUT CARGO AIRPORTS. SIMILARLY, YOU DON'T REALLY WANT TO TRY TO SELL THE AIRPORT FACILITY TO THE COMMUNITY. YOU WANT TO SELL THE BENEFITS, AND THE BENEFITS, AGAIN, WE GET BACK TO THE MULTIPLIER EFFECT, WHICH WILL BE JOB CREATION INDUSTRY THAT GOES ALONG WITH THE AIRPORT. THAT'S WHERE THE REAL BENEFITS ARE GOING TO BE FOUND. AGAIN, YOU HAVE YOU HAVE GOT TO QUANTIFY THAT. USUALLY, THAT IS BY SHOWING WHAT HAS HAPPENED IN OTHER AND YOU ARE I CAN'TS WHERE SUCCESSFUL AIR CARGO AIRPORT OR SUCCESSFUL INTERMODAL FACILITY OR SUCCESSFUL FREIGHT FACILITY HAS BEEN LOCATED. JOB CREATION AND BENEFITS ARE GOING TO BE STRICTLY FROM THAT SINGLE FACILITY THAT MIGHT BE ATTRACTIVE TO THE RESIDENTS, IT'S GOING TO BE ALL THE BENEFICIAL THING THAT IS ARE LOCATED TO TAKE ADVANTAGE OF THE FACILITY THAT WILL REALLY OFFER THE SELLING POINTS.


THANK YOU. WE HAVE ANOTHER QUESTION POSTED HERE. THE QUESTIONS ARE REGARDING STATEWIDE FREIGHT ECONOMIC ANALYSIS. CAN YOU BRIEFLY EXPLAIN WHY AND HOW YOU WOULD FORECAST FOR A 10-TO 20-YEAR HORIZON FREIGHT TRAFFIC, DEVELOP TYPICAL FOUR-STEP TRANSPORTATION TRUCK MODEL AND OR SOME OTHER INNOVATIVE TRUCK MODEL TO PREDICT THE TRUCK FORECASTS? I AM NOT SURE WHO TO TURN TO ON THIS IF ANY OF YOU HAVE INPUT, PLEASE JUMP IN.


GLEN WEISBROD:

I CAN'T ANSWER THE QUESTION ON HOW TO DO THE STATEWIDE TRAFFIC FORECASTING, BUT BUT I WOULD LIKE TO MAKE A COMMENT THAT I THINK APPLIES TO ALL OF US. WHEN PEOPLE DO FORECASTS, THE ASSUMPTION IS THAT THE ORIGINS AND DESTINATIONS OF -- ARE, YOU HAVE FORECAST A POPULATION GROWTH, AND THAT LEADS TO A CERTAIN AMOUNT OF ORIGIN, TRIP ORIGIN AND DESTINATION ARE FIXED AND YOU TRY TO MODEL CAN WHAT IS -- WHAT IS THE BEST TRAFFIC INFRASTRUCTURE TORE SERVING THIS PATTERN. A LOT OF THE ECONOMIC MODEL ISSUES WE ARE TALKING ABOUT ARE ACTUALLY CHANGING THE WHOLE NATURE OF FORECASTING. IT SAYS WAIT A MINUTE, IF YOU ARE PROJECTING THE ECONOMIC DEVELOPMENT, YOU MAY ATTRACT BUSINESSES TO A NEW AIRPORT OR TO A NEW MISSOURI -- INTERMODAL FACILITY IN A WAY NO ONE EVER DREAMED AND A LOT OF MAJOR OR MINOR BUSINESSES COULD LOCATE AND GROW IN NEW PLACES WHERE HERETOFORE THEY HAVEN'T BEEN LOCATED OR GROWING. SO YOUR FORECAST COULD BE TOTALLY DIFFERENT FROM WHAT YOU THINK ARE NATURALLY EXPANDING TRENDS, MEANING AS A DANGER, THE FOUR-STEP PROCESS DOES NOT GIVE ANY OPPORTUNITY FOR RECOGNIZING THAT ECONOMIC DEVELOPMENT INITIATIVES COULD CHANGE THE WHOLE NATURE OF WHERE BUSINESSES ARE LOCATED. SO THAT'S JUST A WARNING THAT WHEN PEOPLE DO IT. YOU CAN'T JUST TAKE PROJECTIONS AS GIVEN, BECAUSE THE PROJECTIONS NEVER ASSUMED THAT THERE WAS ANY MAJOR CHANGE IN THE PATTERN OF TRANSPORTATION INVESTMENT. MATT, DO YOU HAVE ANY COMMENT ABOUT THE APPLICATION OF THAT FOR AIRPORT?


MATT PREISLER:

I THINK SO. . WE DO HAVE FORECASTS FOR AIRPORTS, IT'S PROBABLY A LOT EASIER THAN FOR TRUCKS, BECAUSE THE CHOKE POINT, YOU DO YOUR FORECAST, IDENTIFY CHOKE POINTS AND GROWTH. WE KNOW WHERE THE CHOKE POINTS ARE FOR THE AIRPORT. IT IS THE AIRPORT ITSELF. THAT'S ALL YOU REALLY HAVE TO CONCERN YOUR FORECAST ON. AND WHEN WE DO IT, WE DO AT WHAT WE CALL THE NATURAL GROWTH RATE, WHICH IS WHAT WE ARE TALKING ABOUT, ASSUMING THE FORECAST PERIOD, THAT EVERYTHING WILL REMAIN STATUS , NO REAL CHANGES. THE PROBLEM WITH THAT, AS YOU MENTIONED, IS A LOT OF THESE STUDIES THAT WE DO, OR -- ARE TRYING TO DEVELOP ECONOMIC GROWTH OR PUTTING INTO PLACE FACTORS THAT WILL ALLOW ECONOMIC GROWTH HAPPEN, WHEN THAT HAPPENS, THAT WILL CHANGE THE DYNAMIC OF THE GROWTH. THAT WILL TAKE YOU OUTSIDE OF THE NATURAL GROWTH RATE. SO WE ALSO TRY TO PUT IN THERE WHAT WOULD THE GROWTH RATE BE, SHOULD COMPANY X OR THIS INITIATIVE COME TO FRUITION. IN THAT CASE, IT BECOMES VERY SPECULATIVE. YOU DON'T KNOW AT WHAT POINT YOU HAVE TO DROP THAT INTO THE TIME LINE, YOU WOULD HAVE TO DO A LOT OF DIFFERENT SCENARIOS TO COME UP WITH HIGH AND LOW END GROWTH. BUT, AGAIN, IT IS VERY DIFFICULT, SPECULATIVE, IF YOU STICK WITH JUST JUST YOUR NATURAL GROWTH RATE, THAT MIGHT NOT BE REALISTIC OVER A 20-YEAR PERIOD.


MARTIN WEISS

LET ME ADD. I DO NOT ADVOCATE ECONOMIC ANALYSIS NOR STATEWIDE FINDINGS. I AM NOT HERE FOR THAT AND I DON'T PROVIDE THE TECHNICAL SUPPORT FOR IT. I WILL REFER YOU TO ELOISE FREEMAN-POWELL OR ROBERT GORMAN WHO WOULD DO THAT -- IN THE FEDERAL HIGHWAY ADMINISTRATION.


I ACTUALLY HAVE BOB GORMAN HERE.


ROBERT GORMAN:

WELL, THE STATE-OF-THE-ART FOR FORECASTING FREIGHT IS STILL RELATIVELY RELATIVELY WEAK. THE FOUR-STEP PROCESS FOR DEVELOPING A TRUCK TRIP IS NOT NECESSARY WELL WELL ESTABLISHED, AND AN EFFORT TO LOOK AT COMMODITY FLOW MODELS, TO DEVELOP FORECAST. THERE HAVE ALSO BEEN EFFORTS TO DO TRIM LANE FORECASTING, ANTICIPATING THAT THE FUTURE IS GOING TO MAKE THE PATH -- MIMIC THE PATH. BUT THE WHOLE RANGE OF FREIGHT FORECASTING IS A RELATIVELY EARLY STAGE. THERE ARE A NUMBER OF PROPOSALS WITHIN PRB TO GREATLY IMPROVE THE GREAT DATA BASE AND TO GREATLY IMPROVE FREIGHT FORECASTING CAPABILITIES. I DON'T ANTICIPATE ANY MAJOR BREAKTHROUGHS IN THE NEXT COUPLE OF YEARS.



THANK YOU. WE ACTUALLY DO HAVE A FEW OTHER QUESTIONS POSTED HERE. I FOUND THEM IN THE Q&A TAB. NORMALLY I WOULD GO TO THE CHAT AREA. I DO APOLOGIZE IF I HAD SKIPPED OVER YOUR QUESTION. THE QUESTION, WHAT IS THE POTENTIAL FOR FOR CONNECTIVITY BETWEEN AIR AND FRAIL AND RAIL IS CONTIGUOUS TO THE AIRPORT CONSIDERING THAT UPS IS THE LARGEST USER OF RAIL INTERMODAL? GLEN, WE WILL GO AHEAD AND START WITH YOU FIRST.


ABOUT RAIL/AIR INTERFACE, IS THAT THE QUESTION?


YES, BETWEEN AIR AND RAIL.


GLEN WEISBROD:

THAT IS SOMETHING THAT IN THE PAST HAS, THERE'S BEEN VERY, VERY LITTLE ACTUALLY HAPPENING, AND AND NOW THERE'S BEEN INCREASING INTEREST IN THAT FOR FOR CERTAIN TYPES OF PRODUCTS, BUT I THINK IT IS IT IS SOMETHING THAT IS STILL IN ITS INFANCY. MAYBE MATT CAN SAY MORE ON THAT.


MATT PREISLER:

THE COMMODITY TYPES THAT ARE TRADITIONALLY TRANSPORTED VIA AIR VERSUS WHAT IS TRANSPORTED, THE RAIL, THE TWO OF THEM JUST DON'T MESH. THERE AREN'T TOO MANY OF THE SAME TYPES OF PRODUCTS. WHEN YOU HAVE PRODUCT MOVING VIA RAIL, IT'S GENERALLY NOT AS TIME SENSITIVE OR TIME CRITICAL AS IT WOULD BE IF YOU ARE MOVING BY TRUCK OR BY AIR. SO, I DON'T, I DON'T SEE TOO MUCH OF A FUTURE FOR THAT, AS IT STANDS RIGHT NOW. I KNOW THERE IS SOME ACTIVITY OF THAT GOING ON IN EUROPE RIGHT NOW IN GERMANY, CANS A HUGE AIR CARGO AND RAIL HUB. THEY ARE TRYING TO INITIATE THAT. BUT AS IT STANDS RIGHT NOW, THERE IS NOT TOO MUCH CONNECTIVITY BETWEEN THE TWO COMMODITY TYPES, SO I DON'T SEE IT AS BECOMING A WIDESPREAD TREND.


THANK YOU. MATT, I BELIEVE THIS ONE IS DIRECTED TO YOU. ARE THERE READILY-AVAILABLE RULES OF THUMB INDUSTRY BY INDUSTRY MULTIPLIERS TO USE FOR A PRELIMINARY ANALYSIS?


MATT PREISLER:

SOMEBODY, WAS IT GLEN THAT MENTIONED WHERE THEY WERE?


DEPARTMENT OF COMMERCE.


DEPARTMENT DEPARTMENT OF COMMERCE MULTIPLIERS


THEY HAVE SOME STATEWIDE MULTIPLIERS, FOR THE LOCAL AREA, YOU HAVE TO PURCHASE THEM AT A COST FROM EITHER THE RIMS 2 MODEL OF BUREAU OF ECONOMIC ANALYSIS OR FROM THE IMPLAN MODEL, YOU CAN FIND THEM IN A WEB SEARCHER, RIMS AND IM PLAN. THAT'S A MINOR ASPECT. WHAT IS THE SPINOFF AFTER YOU HAVE ESTABLISHED YOUR AIRPORT AND ATTRACT YOUR BUSINESS.


THANK YOU. MATT, WE HAVE ANOTHER QUESTION FOR YOU. WHAT IS THE RANGE OF COSTS FOR THE INITIATIVES IN DALLAS, WILMINGTON, COLUMBUS, VICTORVILLE, ALL OF THOSE AIRPORT PLANS?


MATT PREISLER:

I WOULD SAY IS ALLIANCE FIELD WAS THE MOST AGGRESSIVE OF THEM, BUT IT'S HARD TO QUANTIFY HOW MUCH IT WAS EXACTLY. BECAUSE WHAT YOU HAD WAS THE INITIAL CONSTRUCTION OF THE AIRFIELD AND WHATEVER ACCESS ROADS THAT WERE REQUIRED. BUT THEN THE SURROUNDING CONSTRUCTION SUCH AS THE INDUSTRIAL PARKS AND ALL OF THAT, A LOT OF THAT WAS UNDERTAKEN WITH PRIVATE FUNS. I CAN TELL YOU THE BASE MODEL FOR A FACILITY LIKE THIS, A NEW CONSTRUCTION FACILITY, WOULD BE THE GLOBAL TRANSPARK IN NORTH CAROLINA. THIS WAS BUILT BUILT ABOUT 10 YEARS AGO, IT CONSISTED OF 10,000 FOOT RUNWAY, SOME RAMP SPACE AND THE NECESSARY, I GUESS, INFRASTRUCTURE TO CONNECT IT TO THE DISTANT INTERSTATES, AND THAT WAS ABOUT $100 MILLION INVESTMENT THAT WAS UNDERTAKEN MOSTLY BY THE STATE OF NORTH CAROLINA, AND THAT'S THE BASE. THAT'S WHAT IT WILL COST TO GET JUST THE RUNWAY AND BASIC INFRASTRUCTURE IN PLACE. MY GUESS WOULD BE YOU ARE PROBABLY TALKING ABOUT HALF A BILLION DOLLARS FOR WHAT WENT IN TO DEVELOP THE ALLIANCE FIELD, BUT, AGAIN, A LOT OF THAT WAS PRIVATE INVESTMENT. ONCE THE AIRFIELD WAS IN PLACE, AND THEN EVERYONE CAME IN TO LOCATE AROUND THAT, THAT WAS BUILT WITH PRIVATE MONEY. WELL, ACTUALLY, ALLIANCE ITSELF, EXCUSE ME, WAS MOSTLY FUNDED THROUGH PRIVATE INVESTMENT ALSO.


THANK YOU. WE HAVE ONE MORE QUESTION FOR YOU. COULD A MILITARY PROCUREMENT BASE BE A FACTOR IN A CARGO- ONLY AIRPORT?


WHAT WAS THE QUESTION?


I'M SORRY, THIS IS FOR MATT AGAIN. COULD A MILITARY PROCUREMENT BASE BE A FACTOR IN A CARGO- ONLY AIRPORT?


MATT PREISLER:

WHAT IS MEANT BY MILITARY PROCUREMENT BASE? IF IT INCLUDES AN AIRFIELD, THEN, YES, THAT'S THE BASELINE ON THERE. I KNOW THERE ARE SOME AIRPORTS BUILT BY THE MILITARY THAT HAD SPECIFIC DESIGNS TO BE A AIR CARGO OR LOGISTICS AIRPORT. CHARLESTON, SOUTH CAROLINA, DUAL USE AIRPORT, FOR EXAMPLE, WAS BUILT SPECIFICALLY WITH MOVING CARGO IN MIND. IF THAT'S WHAT IS MEANT BY PROCUREMENT BASED, THAT WOULD BE THE IDEAL. THAT ALREADY HAS FROM STRUCK BUILT INTO IT. SO, YES.


UNFORTUNATLY THE THE QUESTION WAS POSTED TO CHAT, I CAN'T GO INTO MORE DETAIL. THE ASKER, IF IT IS OKAY WITH YOU, MATT, TO CONTACT YOU DIRECTLY THEN.


SURE.


PERHAPS YOU CAN GO IN MORE DETAIL.


FINE.


JENNIFER SEPLOW:

WE CAN ALSO POST THESE QUESTIONS TO THE LISTSERV.. IT IS A LITTLE AFTER 2:30, SO WE ARE GOING TO WRAP THIS UP. IF YOU DO HAVE ANY ADDITIONAL QUESTIONS, I ENCOURAGE YOU TO POST THEM TO THE FREIGHT PLANNING LISTSERV. THE ADDRESS IS UP THERE, AND OR CONTACT THE PRESENTERS DIRECTLY. I WOULD LIKE TO THANK YOU ALL FOR ATTENDING TODAY'S SEMINAR, TALKING FREIGHT SEMINAR SERIES. I WILL SEND OUT A FOLLOWUP E-MAIL AGAIN WITH WEBSITES POSTED HERE, CHAT INFORMATION, AND LETTING YOU KNOW WHEN THE RECORDED VERSION WILL BE READY. THE NEXT SEMINAR, PERSPECTIVES FROM FREIGHT TRANSPORTATION PROVIDERS, TRUCKING AND RAIL, WILL BE HELD ON MARCH 17, AND WE HAVE TWO SPEAKERS EACH FROM TRUCKING AND RAIL SITES FROM BOTH INDUSTRY AND ASSOCIATIONS. IF YOU HAVEN'T DONE SO ALREADY, I ENCOURAGE YOU TO VISIT THE TALKING FREIGHT WEBSITE AND REGISTER FOR THIS SEMINAR AS WELL AS FUTURE SEMINARS. AGAIN, I ALSO ENCOURAGE YOU TO JOIN THE FREIGHT PLANNING LISTSERV IF YOU HAVE NOT ALREADY DONE SO, THE ADDRESS OF WHICH IS UP ON THE SCREEN. SO THANK YOU TO THE THREE PRESENTERS AND THANK YOU EVERYBODY FOR ATTENDING TODAY.


LADIES AND GENTLEMEN, THAT DOES CONCLUDE THE CONFERENCE CALL FOR TODAY. WE THANK YOU ALSO FOR PARTICIPATING AND ASK THAT YOU KINDLY DISCONNECT. THANK YOU ONCE AGAIN AND HAVE A GREAT AFTERNOON

Contact Information

Spencer Stevens
Office of Planning
spencer.stevens@dot.gov
Phone: 202-366-0149/717-221-4512
Carol Keenan
Office of Freight Management & Operations
carol.keenan@fhwa.dot.gov
Phone: 202-366-6993
Updated: 03/29/2011
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