MID AMERICA LOGISTICS HUBS AND FREIGHT CORRIDORS
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1 MID AMERICA LOGISTICS HUBS AND FREIGHT CORRIDORS 2015 Best Practices Conference Omaha, Nebraska Bill Luttrell Werner Enterprises
2 WERNER ENTERPRISES - FOUNDED IN 1956 Werner Enterprises, Inc. and Werner Global Logistics is a premier global transportation, logistics / 3PL firm which provides sophisticated supply chain solutions on a worldwide basis. Werner is headquartered in Omaha, Nebraska Revenue: $2.1 billion 2014 Net Income: $99 million NASDAQ: WERN Alliance Carriers: 8,500 Trucks: 7,300 Trailers: 24,000 Van Flatbed Temp. Controlled Intermodal Air Freight LTL Ocean Bulk Warehousing Freight Forwarding Consulting Freight Management Freight Movement Global Implementation Technology Leader
3 MID AMERICA LOGISTICS HUBS
4 How Logistics Hubs have developed: MID-AMERICA LOGISTICS HUBS Historical development of freight movement in the U.S. Rivers > Roads > Rail > Interstate Highways > Air > Ocean Shipping Rising importance of Logistics in the Supply Chain Minimizing Costs, Maximizing Efficiencies (especially Timing), Service (Quality) Location s vital role in Supply Chain Optimization Sustainability 4
5 DEMOGRAPHICS AND LOGISTICS POPULATION CENTROID 5
6 DEMOGRAPHICS AND LOGISTICS POPULATION CENTROID More than half of national growth continues to be in three states, California, Texas, and Florida." Since 1950 there has been a pronounced "sunbelt shift" to population, with over 90% of national growth since the eighties going to the South and the West, at the expense of the older, more settled regions of the Midwest and Northeast. The South and West now have more than 56% of the 6 nation's population.
7 DEMOGRAPHICS AND LOGISTICS FREIGHT DELIVERY Source: US Census Bureau, Werner Enterprises
8 DEMOGRAPHICS AND LOGISTICS FREIGHT DELIVERY The Panama Canal expansion in due to be completed in % of the world s consumer market is located outside of North America Source: US Census Bureau, Werner Enterprises Battle of the Railroads has already begun with the battle ground being the Ohio River Valley in the Upper Midwest which is at the heart of the United States population 8 center
9 U.S. MSAS Since 1950, MSAs have grown from 56% of national population to 80%. By far most of the growth in MSAs since the eighties has occurred in suburban areas, as city centers have actually declined in population. MSAs were roughly 50% suburban and 50% urban in 1950; now that ratio is closer to two-thirds suburban, and is rising. Despite the emphasis on MSAs, they are losing population to non-metropolitan areas - often to those rural areas on the fringes of metropolitan complexes. Source: USDOT/FHA 9
10 MID-AMERICA LOGISTICS HUBS Modern Logistics Hub characteristics: typically are MSAs with significant Multi-Modal access and high freight volumes actually in or have easy access to major population centers (consumers) have Global market access some are Ports / Inland Ports or are strategically located between major markets all must have and maintain significant freight infrastructures as a result Hubs have attracted and retained significant logistics related activities carriers (trucking companies, railroads, air cargo, shipping lines) logistics firms and specialized logistics related labor: brokers, freight forwarders, freight management, customs brokers, warehouse workers logistics support activities: real estate firms, construction firms, financial institutions, insurance companies, government support agencies attract significant, diversified HUBS optimize Efficiencies and Costs amounts of Manufacturing and 10 Warehouse/Distribution facilities
11 MID-AMERICA LOGISTICS HUBS 11
12 MID AMERICA FREIGHT CORRIDORS
13 AVERAGE DAILY LONG-HAUL TRUCK TRAFFIC
14 AVERAGE DAILY LONG-HAUL TRUCK TRAFFIC 2011 Capacity Economy of Scale Reliability - Infrastructure Efficiency - Cost RISK THE LARGEST BEING CONGESTION Costs over $20 billion annually FINANCING ALSO A VERY IMPORTANT ISSUE Source: FHWA / DOT National Freight Statistics 2011 Another concern is higher costs of real estate along these freight corridors, increasing due to their perceived commercial potential. 14
15 I-80 MID AMERICA CORRIDOR 15
16 I-29 & I-35: THE MID CONTINENT NAFTA CORRIDOR 16
17 I-90 & I-94 MID AMERICA CORRIDOR 17
18 I-55 & I-70 CORRIDORS 18
19 I-65, I-69 & I-75 (AUTO ALLEY) AND I-71 CORRIDORS 19
20 MID AMERICA RAIL FREIGHT CORRIDORS Source: Union Pacific Source: CSX
21 MAJOR LOGISTICS HUBS AND RAIL CORRIDORS IN THE U.S. Source: Hofstra University 21
22 RAIL / INTERMODAL / TRUCK MARKETS The domestic container market should continue to grow at rapid pace. After 56 consecutive months of growth this segment s strong and steady performance during a dodgy economic recovery highlights the inherent economic advantages of intermodal. -TXX Economic Monitor 22
23 SUPPLY INTERMODAL FORECAST FOR 2021 Baseline Forecast 82.6% growth in Intermodal volume Alternative Forecast Tripled Baseline growth in Intermodal volume Sources: ATA 23
24 MID AMERICA RAIL CORRIDORS AND INTERMODAL FACILITIES 24
25 RAIL CORRIDORS AND INTERMODAL FACILITIES 25
26 SEVEN CLASS I RAIL MAINLINES AND INTERMODAL FACILITIES COFC TOFC
27 SEVEN CLASS I RAIL MAINLINES AND INTERMODAL FACILITIES COFC TOFC
28 MID AMERICA LOGISTICS HUBS AND FREIGHT CORRIDORS ATTRACT INVESTMENT
29 LOCATION, LOGISTICS AND THE SUPPLY CHAIN For Manufacturing, Warehouse / Distribution and Retail Projects The SUPPLY CHAIN is a system of organizations, people, technologies, activities, information, resources and facilities involved in moving a product or service from SUPPLIER to CUSTOMER Location is a VITAL part of Supply Chain Optimization 29
30 MANUFACTURING AND WAREHOUSE / DISTRIBUTION CAPEX CAPITAL INVESTMENTS COSTS 30
31 MID-AMERICA LOGISTICS HUBS Success Breeds Success as Logistics Clusters attract the Lion s Share of investment 31
32 NEW & EXPANDED FACILITIES (MFG & DCS) OVER THE PAST YEAR 32
33 NEW & EXPANDED FACILITIES (MFG & DCS) OVER THE PAST YEAR 33
34 THANK YOU For more information visit: Follow us on Facebook and Twitter For more information please contact: Bill Luttrell Senior Locations Strategist Office: ext Cell:
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