Charting the Future of the Carolinas - Forging an Integrated Economic Growth Strategy for the Next 50 Years

Transcription

1 Charting the Future of the Carolinas - Forging an Integrated Economic Growth Strategy for the Next 50 Years Global Vision Leaders Group Prepared by John Paul Galles jgalles@greatercharlottebiz.com x 102 More Resources at: 1/5/2015 Global Vision Group - - UNCC Exec. MBA 1

2 BREAKING NEWS! Charlotte had the largest percentage growth in the country in exports from 2012 to According to the report of the International Trade Administration, U.S. Department of Commerce, the Charlotte-Concord- Gastonia, NC-SC region was up by $4.4 billion from 2012 to [09/2014] In addition to seeing high dollar growth, the Charlotte, NC-SC area saw the fastest percentage growth in exports among the top 50 metro areas from 2012 to 2013, with goods exports increasing by 69%. During this period, this metro area saw strong exports of transportation equipment up 333% as well as machinery up 80.9%. 1/5/2015 Global Vision Group - - UNCC Exec. MBA 2

3 Companies Choose to Export Because 1/5/2015 Global Vision Group - - UNCC Exec. MBA 3

4 What is happening globally? A new McKinsey Global Institute (MGI) report, Global flows in a digital age: How trade, finance, people, and data connect the world economy, examines the inflows and outflows of goods, services, finance, and people, as well as the data and communication flows that underlie them all, for 195 countries around the world. (April 2014) 1/5/2015 Global Vision Group - - UNCC Exec. MBA 4

5 Global flows... $26 trillion flow of goods, services, and finance in 2012, equal to 36% of global GDP Up to $450 billion added to global GDP growth each year by flows and 40% more benefit for the most connected countries than the least connected 18-fold increase in cross-border Internet traffic between 2005 and % of global goods flows through the top 50 routes in 1990, down to 54% in by the numbers 1/5/2015 Global Vision Group - - UNCC Exec. MBA 5

6 Global flows... 38% of total cross-border flows of goods, services, and finance from emerging economies in 2012, up from 14% in 1990 Up to $85 trillion flow of goods, services, and finance by 2025, three times the value in % of global goods trade from China in 2012, vs. 2% in % increase in international Skype call minutes since 2008 Growth in knowledge-intensive goods trade 1.3x as fast as in labor-intensive goods 90% of commercial sellers on ebay export to other countries, vs. less than 25% of traditional small businesses... by the numbers 1/5/2015 Global Vision Group - - UNCC Exec. MBA 6

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8 Charlotte as a global region Leadership is key The combined effect of the forces within big cities, great colleges and powerful local leaders will provide the next economic breakthrough. Adapted from The Coming Jobs War by Jim Clifton. 1/5/2015 Global Vision Group - - UNCC Exec. MBA 8

9 Charlotte region as a global hub! Global Vision The economic vision for the Charlotte region s future is to become a global hub of commerce : a great inland port city leveraging its financial, energy, healthcare, educational, entrepreneurial, manufacturing, and logistical resources to world prominence ~ 1/5/2015 Global Vision Group - - UNCC Exec. MBA 9

10 Charlotte region as a global hub Global Vision Leadership Group (86 community leaders) Build on the assets of the Charlotte area to expand our regional vision of economic success. Expand economic base from Finance, Energy and Healthcare to include Advanced Manufacturing, Transportation and Logistics, and Entrepreneurialism ~ 1/5/2015 Global Vision Group - - UNCC Exec. MBA 10

11 Charlotte region as a global hub How will we do this? 1. Create things better than our competitors by adopting entrepreneurialism and innovation as prominent and core values of the region and provide support for innovation and new business creators. ~ 1/5/2015 Global Vision Group - - UNCC Exec. MBA 11

12 Charlotte region as a global hub How will we do this? 2. Make things better than our competitors by growing our advanced manufacturing base and providing these businesses with world class employees through exemplary education and training success. ~ 1/5/2015 Global Vision Group - - UNCC Exec. MBA 12

13 Charlotte region as a global hub How will we do this? 3. Move things better than our competitors through the new intermodal center at the Charlotte-Douglas International Airport. We will move people and goods faster, cheaper and more efficiently through the consolidation of train, truck, air and ship transportation. ~ 1/5/2015 Global Vision Group - - UNCC Exec. MBA 13

14 From The Charlotte Observer June 29, 2014 Charlotte s intermodal shipping facility has put the Queen City on the map nationally as a transportation hub, a Norfolk Southern official told Charlotte business and civic leaders Thursday. Grant Cothran said it has made Charlotte a key point on the nation s freight shipping map, along with select other cities. Charlotte s role on that map is only going to increase with time, he said. 1/5/2015 Global Vision Group - - UNCC Exec. MBA 14

15 Courtesy of the N.C. Department of Commerce 1/5/2015 Global Vision Group - - UNCC Exec. MBA 15

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18 Here's what the Southeast will change between 2009 and 2060! /5/2015 Global Vision Group - - UNCC Exec. MBA 18

19 As the mega-region has been dubbed. Char-lanta already has an economy larger than South Korea's, with more than a trillion dollars in output. We wonder which country's GNP it'll outsize by 2060, when it looks like this crazy fretwork: 'Char-lanta" includes Birmingham, Raleigh, and several other metros in addition to Charlotte and Atlanta. 1/5/2015 Global Vision Group - - UNCC Exec. MBA 19

20 The combined business product from within the Piedmont Atlantic region totals about $1.3 Trillion about the size of the total product from South Korea. Raleigh Charlotte Birmingham Atlanta 1/5/2015 Global Vision Group - - UNCC Exec. MBA 20

21 Converging Factors Affecting our Future Making Charlotte a Global Hub for International Trade An Inland Port for Logistical Growth 1. Location, Location, Location 2. BEST Workforce Training programs at CPCC, Community Colleges & Technical Schools 3. Access to Air, Roads, Rails, Ports and Population Centers 4. Capitalize on Charlotte Douglas International Airport (CDIA) 5. Merger of U.S. Air and American Airlines Access to int l routes 6. Capitalize on our new Norfolk Southern (NS) Intermodal Center 7. Expansion of the Panama Canal Post-Panamax Ships and Beyond 8. NS & City of Charlotte investment of $136 million for roads and utilities in and around the airport and the Intermodal Center 9. 12,000 Acres Available for Development 10. Over 914 international companies located in the greater Charlotte region 11. Future U.S. / European/Pacific Free Trade Agreements 1/5/2015 Global Vision Group - - UNCC Exec. MBA 21

22 Location, Location, Location Charlotte is the only major distribution center midway between the Northeast, Midwest and Florida markets. Charlotte s population in a 100-mile radius exceeds that of Birmingham, Jacksonville, Miami, Tampa, Memphis, Nashville, or Norfolk. 1/5/2015 Global Vision Group - - UNCC Exec. MBA 22

23 Workforce Education & Training Source: These students are paid to go to college Facebook Apprenticeship2000 has a new model for higher education, it's a hybrid program in which students are paid to work. 1/5/2015 Global Vision Group - - UNCC Exec. MBA 23

24 Within 650 miles of Charlotte are 164 million U.S. and Canadian consumers and 55 of the country s top 100 metropolitan areas. Charlotte business can reach 60% of the U.S. population within two hours by air and 24 hours by truck. 1/5/2015 Global Vision Group - - UNCC Exec. MBA 24

25 Quick Ship Access by Highways, Railroads, Air and Sea 1/5/2015 Global Vision Group - - UNCC Exec. MBA 25

26 Charlotte Douglas Int l Airport Phase 3 ( ) 1/5/2015 Global Vision Group - - UNCC Exec. MBA 26

27 43.8 Million Passengers Per Year Pass Through Charlotte Douglas International Airport 1/5/2015 Global Vision Group - - UNCC Exec. MBA 27

28 Charlotte has the lowest cost per passenger of any U.S. airport. 1/5/2015 Global Vision Group - - UNCC Exec. MBA 28

29 Charlotte has the lowest cost per passenger of any U.S. airport. 1/5/2015 Global Vision Group - - UNCC Exec. MBA 29

30 American Airlines/US Airways Merger Approved in December 2013 CLT is the 6 th busiest airport in the United States. CLT is the 2 nd busiest hub in the American Airlines footprint. CLT ranks 33 rd in the United States for freight traffic. 1/5/2015 Global Vision Group - - UNCC Exec. MBA 30

31 American / U. S. Airways Commercial Routes 1/5/2015 Global Vision Group - - UNCC Exec. MBA 31

32 NS Charlotte Regional Intermodal Facility Opened December /5/2015 Global Vision Group - - UNCC Exec. MBA 32

33 NS Intermodal in Charlotte New Terminal Old Terminal Acreage Airport Terminal Opened 12/09/13 ~170 acres Expansion options Pad Tracks 3, totaling 13,225 Expandable to 6 Uptown Terminal Closed ~40 acres 3, totaling 5,300 Support Tracks 8, totaling 24,810 N/A Parking Spots 1,328 on site 600 Highway Access ¼ mile from I-85 4 miles from I-85 1/5/2015 Global Vision Group - - UNCC Exec. MBA 33

34 Norfolk Southern Rails Kansas City St Louis Chicago Central Illinois Albany Buffalo Detroit Scranton Boston Cleveland Bethlehem Harrisburg New York / New Jersey Toledo Pittsburgh Philadelphia Greencastle Cincinnati Columbus Baltimore Inland Virginia Georgetown Louisville Norfolk Greensboro Dallas Shreveport Memphis Huntsville Birmingham Inland South Carolina Atlanta Charlotte Charleston Savannah Intermodal Network Haulage Extensions Intermodal Terminals New Orleans Jacksonville Central Florida On-Dock Access Interchange Gateways 1/5/2015 Global Vision Group - - UNCC Exec. MBA 34 Miami

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36 Charlotte s Top Intermodal Shippers 1/5/2015 Global Vision Group - - UNCC Exec. MBA 36

37 Charlotte 1/5/2015 Global Vision Group - - UNCC Exec. MBA 37

38 Expansion of Panama Canal Scheduled for Opening Early /5/2015 Global Vision Group - - UNCC Exec. MBA 38

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40 Just for Comparison - Visualize this! 1/5/2015 Global Vision Group - - UNCC Exec. MBA 40

41 Southeast Deep Water Ports 1/5/2015 Global Vision Group - - UNCC Exec. MBA 41

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43 Port of Charleston Expansion planning for its future! 1/5/2015 Global Vision Group - - UNCC Exec. MBA 43

44 PORT OF SAVANNAH Presented to Garden City Terminal: The Southeast Gateway for the U.S. September 4, /5/2015 Global Vision Group - - UNCC Exec. MBA 44

45 GEORGIA PORTS AUTHORITY: MORE DEEPWATER TERMINAL OPTIONS Garden City Terminal Ocean Terminal Colonel s Island Terminal East River Terminal / Lanier Docks Mayor s Point Terminal 1/5/2015 Global Vision Group - - UNCC Exec. MBA 45

46 In Thousands of TEUs PORT OF SAVANNAH (GCT) THROUGHPUT 14-year Calendar Year History 3,500 3,000 2,500 2,000 1,500 1,000 China USWC Enters Port WTO Closure 1 M TEU Milestone 13.6% 14.3% 14.6% 9.3% 22.6% 12.6% 21% Suez Services Emerge Economic Recession 20.6% 0.5% 9.9% 0.7% 2.3% 4.2% 19.9% CAGR Before the Recession USA = 4.8% SAVANNAH = 13.5% CAGR Since the Recession USA = 1.2% SAVANNAH = 3.0% 1/5/2015 Global Vision Group - - UNCC Exec. MBA 46 Source: GPA Marketing (loads & empties)

47 SAVANNAH: DELIVERING SUCCESS TO OUR CUSTOMERS Fourth Busiest Port in the U.S. Fastest Growing LA 4,879,429 7,868, LB 4,600,787 6,730, NY/NJ 3,050,006 5,467, Savannah 948,669 3,034, Oakland 1,776,922 2,346, Virginia 1,347,364 2,223, Houston 1,061,525 1,950, Tacoma 1,376,379 1,886, Charleston 1,632,747 1,601, Seattle 1,488,020 1,575, % 13-year CAGR 3.5% 2.8% 4.3% 2.0% 3.6% 4.4% 2.3% 2.3% 8.7% Top 10 Total 22,161,878 34,684, % -2% 0% 2% 4% 6% 8% 10% 1/5/2015 Global Vision Group - - UNCC Exec. MBA 47 Source: AAPA, includes loads and empties in TEUs

48 GROWTH POTENTIAL: THE PANAMA CANAL EXPANSION IS EXPECTED TO ADD VALUE TO SOUTHEASTERN PORTS AND REALIZE ENORMOUS POTENTIAL TO SERVE THE REGION. 2 7 Southeast Port 2013 TEUs 2013 Share 1. Savannah 2,375,746 30% 8 SAVANNAH Norfolk 1,842,406 24% 3. Charleston 1,296,736 17% 4. Miami 718,661 9% 5. Pt. Everglades 690,412 9% 6. Jacksonville 316,873 4% Wilmington, NC 222,760 3% 8. Mobile 168,417 2% 9. West Palm Beach 162,977 2% 10. Tampa 27, % 1/5/2015 Global Vision Group - - UNCC Exec. MBA 48 Source: PIERS (Loaded Cargo; does not include Puerto Rico)

49 NY/NJ 41 BAL NFK WIL SAVANNAH: A GLOBAL COMMERCE HUB SAVANNAH CHA JAX 28 PEV 23 MIA 38 WEEKLY SERVICES COVERING THE WORLD Key Savannah Service Features: Only Port with All G6 Asian Services Offers 9 Services via Panama Offers 13 Services via Suez (The only port on the East Coast with all 13) First in = 10; Last out = 12 (All Trades) 1/5/2015 Global Vision Group - - UNCC Exec. MBA 49 Source: American Shipper BlueWater Reporting & Carrier Websites

50 Jacksonville, Savannah, Charleston & Norfolk Deep Water Ports Weekly Container Services (Currently) 39 NY/NJ 37 Savannah 30 Norfolk 24 Charleston 15 Miami 8 Jacksonville 4 Wilmington 15 1/5/2015 Global Vision Group - - UNCC Exec. MBA 50

51 Significant Land with Easy Access the CLT, the Intermodal Center, I-485, I-85 and I-77 is Vacant/Available for Growth Charlotte has over 12,000 acres available for development. Gaston County has substantially more land for development. York County also has substantial land for development. 1/5/2015 Global Vision Group - - UNCC Exec. MBA 51

52 CDIA sits on about 6,000 acres. CDIA has an additional 6,500 acres around it. Options on at least another 350 acres Private land owned by developers. 1/5/2015 Global Vision Group - - UNCC Exec. MBA 52

53 Alliance Texas 1/5/2015 Global Vision Group - - UNCC Exec. MBA 53

54 Rickenbacker Global Logistics Park, Columbus, Ohio 1/5/2015 Global Vision Group - - UNCC Exec. MBA 54

55 BNSF Logistics Park Joliet, Illinois (Just outside of Chicago) 1/5/2015 Global Vision Group - - UNCC Exec. MBA 55

56 Global Positioning How Do We Get In The Game? 1/5/2015 Global Vision Group - - UNCC Exec. MBA 56

57 International Rankings by Site Selection Magazine & IBM Dec /5/2015 Global Vision Group - - UNCC Exec. MBA 57

58 We have a STRONG Pitch! 1/5/2015 Global Vision Group - - UNCC Exec. MBA 58

59 Here is another STRENGTH! 1/5/2015 Global Vision Group - - UNCC Exec. MBA 59

60 In the Greater Charlotte Region We have the Best of Both Worlds Quality of Life! Carolina Beaches Carolina Mountains 1/5/2015 Global Vision Group - - UNCC Exec. MBA 60

61 How to get involved? Support Greater Charlotte Biz Support CLTglobal.com Attend upcoming global vision events. Communicate the vision Visit for more resources Sign up to receive updates or to get involved. Visit to connect with A Local Initiative of Global Proportion 1/5/2015 Global Vision Group - - UNCC Exec. MBA 61

62 Visit the CLTglobal.com website! Resources & Updates! Contribute your content! Get Involved! 1/5/2015 Global Vision Group - - UNCC Exec. MBA 62

63 Get updates! Get involved! 1/5/2015 Global Vision Group - - UNCC Exec. MBA 63