Table of Contents. Martin Associates OVERVIEW INFRASTRUCTURE MARKETS BUSINESS CLIMATE SUPPORT MATERIALS. December 2012

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2 Table of Contents OVERVIEW INFRASTRUCTURE MARKETS BUSINESS CLIMATE SUPPORT MATERIALS December 2012 NORTH FLORIDA FREIGHT, LOGISTICS & INTERMODAL FRAMEWORK PLAN Prepared for the NORTH FLORIDA TRANSPORTATION PLANNING ORGANIZATION (TPO) AND SUPPORTING PARTNERS LOGISTICS ADVISORY GROUP (LAG) Prepared by RS&H With Support from Cambridge Systematics & Martin Associates Martin Associates

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4 BUSINESS CLIMATE 1 Overview INTRODUCTION Infrastructure is the backbone to the freight and logistics industry, supported heavily by a Need for a Framework Plan favorable business climate, which attracts and The provides North opportunity Florida Freight, for Logistics & Intermodal Framework Plan economic growth and vitality in the North Florida is a multi-phased, region. The comprehensive, North integrated and intermodal approach Florida region s logistics industry is working hard to position itself for to identifying and meeting future freight and logistics needs of the significant growth, driven by domestic growth and emergence as an international global hub. This moment in time Northeast provides Florida a tremendous Region. The plan seeks to define a common vision opportunity for the North Florida region to cultivate among the an region s environment partners; provide a policy framework; identify short enabling business leaders to help the region and maintain long-term and actions; elevate and its help ensure that elements and projects economic competitiveness, encouraging job can creation be quickly and placed retention, within local and state plans for consistency and through a favorable business climate. This section fiscal describes programming. how This North document summarizes Phases I & II and Florida s business climate is affected by regional, state, national and focuses on identifying the Region s most critical and immediate freight, global trends related to demographics; plans and policies; and economic opportunities. logistics and intermodal opportunities and challenges. Future phases will include a prioritized set of long-range infrastructure and policy changes to ensure the Region s long term position as a key gateway for the State of Florida and Nation. CONDITIONS AND OPPORTUNITIES SUMMARY AND RECOMMENDATIONS overview 1 1

5 For the purposes of this study, the North Florida Region consists of Baker, Clay, Duval, Nassau, Putnam and St. Johns Counties. With over 20 municipalities, its population surpasses 1.4 million and its land area covers 3,943 square miles. The region has an abundance of natural resources and a diversity of habitats, including the St. Johns, St. Marys, and Amelia rivers, the Intracoastal Waterway and the Atlantic Ocean. In addition to being geographically blessed, there are several trends that drive the need for North Florida to further position itself as a freight, logistics and intermodal hub and gateway. These trends can be described in four broad categories: Shifting Global and National Trade patterns National Mobility, Energy and Consumer Needs National, State, and Regional Plans/Initiatives Regional Growth and Support for Freight Infrastructure Shifting Global and National Trade Patterns - International maritime trade to and from the US has continually changed over the last 20 years. The changes include tonnage growth, market shifts and infrastructure investment. Examples of factors that have contributed to changes in logistics patterns and the growth in all-water services include: shifting overseas production centers; the aftermath of the events of 9/11 regarding national security; the West Coast port shutdown by the ocean terminal managers during labor negotiations with labor unions; port capacity issues including shortages of land and labor; a search for alternatives to the existing logistics patterns; and the national and worldwide economic crisis. To an extent, these changes have already impacted the freight flows into, out of and through the North Florida Region. Overview 1 2

6 National Mobility, Energy and Consumer Needs As the nation prepares to add 130 million additional Americans by the year 2050 (America2050.org), the challenges of meeting infrastructure demands, competing in the global economy, and addressing major environmental issues are becoming increasingly significant. The mega regions concept - large networks of metropolitan areas, where most of the population growth will take place by midcentury - represents implications for the nation s freight, logistics and intermodal system. Florida is included among the ten mega regions that have been identified in the United States. Additionally, the American Association of State Highway and Transportation Officials (AASHTO) state that the current capacity of our nation s roads, rails and seaports is not keeping pace with demand. Greater investment, tactical planning and more highway and rail capacity are all needed to address these issues. America2050.org National, State & Regional Plans/ Initiatives Recognizing potential implications from global and national trends, the State through the Florida Chamber Foundation and Florida Department of Transportation completed the Florida Trade and Logistics Study (2010) which identifies trade flows and recommends a comprehensive trade initiative for Florida. As presented in the timeline illustration, this study began to set the stage for Florida s greater emphasis on the freight, logistics, intermodal, and transportation industry sectors. Concurrently, a national focus has also emerged. overview 1 3

7 Timeline of Key Activities Timeline of Key Activities HOUSE BILL 599 MAP 21 ENACTED ICTF COMPLETED ST JOHNS RIVER CHANNEL DEEPENING OPENING YEAR PHASE 2 PANAMA CANAL EXPANSION CHANNEL DEEPENING STUDY NATIONAL FREIGHT STRATEGIC PLAN On a national level, the transportation bill MAP-21, for Moving Ahead for Progress in the 21st Century (MAP-21) was signed into law on July The bill provides a 27-month, $118 billion authorization. The new provisions of the law took effect October 1, 2012 and includes: Mandate for the development of a National Freight Strategic Plan by U.S. DOT within three years, to be updated every five years. In August 2012, the U.S.DOT launched a Freight Policy Council to develop the National Freight Strategic Plan, and to work on other key freight provisions in the MAP-21 legislation A national freight network of up to 30,000 miles critical to the movement of freight, will be identified by the U.S. DOT The U.S. DOT is required to report on performance and conditions of the freight network, including the development of improved tools to assess the performance and evaluate the impacts of freight related projects States are encouraged, but not required, to develop statewide freight plans with the oversight of a state advisory committee Overview 1 4

8 Approved on April 27, 2012 by signature of Governor Rick Scott, Florida House Bill 599 requires the Florida Department of Transportation to develop the Freight Mobility and Trade Plan. The priorities emphasized in this bill include streamlining project processes to increase efficiency; accelerate project delivery; and eliminate duplication in an effort to focus limited public resources. Performance measures drive much of the funding allocations and direct money to those projects delivering the greatest relative benefits. House Bill (HB) 599 (2012) is a cornerstone piece of State legislation in that it mandates the development of the Freight Mobility and Trade Plan with Phase I completed by July This ongoing effort has already The goals for the creation of the plan are: elevated the dialogue between agencies, local governments, economic development groups, and industry leadership. Since the summer of 2012, 1. Increasing the flow of domestic and intern FDOT has been engaged with key regions and stakeholders with regional seaports listening, leadership and and airports business planning forums. recapture cargo cu airports located outside the state. Additionally, the State plan will be developed around 4 key goals: 1. Increasing the flow of domestic and international trade through the 2. Increasing the development of intermoda state s seaports and airports on 2. the Increasing empty the development backhaul of intermodal trucking logistic centers and in rail the ma state 3. Increasing the development of manufactu 3. Increasing the development of manufacturing industries in the state transportation facilities that will promote t 4. Increasing the implementation of compressed natural gas (CNG), expansion liquefied natural of gas manufacturing (LNG), and propane energy facilities. policies Today, activity at Florida s seaports is estimated to generate more than 4. Increasing the implementation of compres 550,000 direct and indirect jobs with $66 billion in economic value for gas Florida. (LNG), Furthermore, and with propane average wage energy of $54,400, the policies state s port workers earn more than double the average wage of all other non-degree businesses and residents located in the sta workers. Clearly, North Florida should demonstrate its capabilities in meeting the goals and objectives of the State freight plan and economic initiatives related to the freight and transportation industry. The Plan s Path Regional Listening Forums (August - September 2012) Plan Review (Industry Stakeholders) Business Forum III (March 2013) Public Commentary (April-June 2013) CEO Level Forum (October 2012) Plan Development (FDOT/Consultant) (January-March 2013) Plan Dissemination (June-July 2013) Scenario Planning Business Forum I (November 2012) Plan Development (Stakeholder) Business Forum II (December 2012) Source: FDOT - Freight Mobility and Trade Plan Phase II Investment Plan (July August 2014) overview 1 5

9 Regional Growth and Support for Freight Infrastructure Cargo activity has an estimated annual economic impact of nearly $19 billion within Northeast Florida. From 2000 to 2010, the region s population has increased by 19%, including the 4th fastest growing county (St. Johns) in the state. Additionally, North Florida s geographic position as the gateway between the state of Florida, the fourth largest economy in the country, and the rest of the United States also means that surrounding statewide and national growth will place more freight onto the region s interstates and rail networks. Together with the region s highlighted accomplishments, there has been increasing stakeholder recognition and support for the need to improve freight infrastructure within North Florida. Examples include the Jacksonville International Business Coalition ( JIBC) and the Logistics Advisory Group (LAG). The JIBC is a collaborative international business development effort between the Jacksonville Economic Development Commission and JAXUSA Partnership (formerly Cornerstone), a regional initiative and partnership of the Jacksonville Regional Chamber of Commerce. The JIBC s Transportation and Logistics Committee has been a vocal supporter for advancing the region s freight initiatives and supporting infrastructure improvements. The Logistics Advisory Group or LAG, a partner in this study, includes representatives from major logistics companies, transportation agencies, community leaders and transportation specialist that all agree that an integrated, intermodal transportation system is critical for our region to remain competitive in the global freight market. Imports 52.6 Million Tons Within North Florida 18.6 Million Tons Exports 27.4 Million Tons Source: Martin Associates, 2010 estimate based on TRANSEARCH, PIERS, and STB Rail Waybill data. North Florida Trade Flows, 2009 Estimated Domestic & International Trade Flows Innovate Northeast Florida Innovate Northeast Florida uncovered three industry ecosystems that differentiate the region on an international level. In addition, the region offers several unique competencies that run throughout all of the target industries. The industry ecosystems and core competencies set the stage for Northeast Florida s long-term growth. The first phase of implementation has prioritized four sub-clusters. Target Industry Ecosystems Financial Services Support Data Centers Insurance Unique Core Competencies Advanced Transportation Aviation Tracking Device & Clean Fuels Security Systems Rail & Port Logistics Distribution Centers Power Storage Supply Chain Propulsion Systems Management & IT Financial Services Financial Software & IT Trade Financing Wholesale Banking Health & Life Sciences Human Health Care & Marine Sciences Wellness Insurance Medical Technologies Administrative Health IT Services Food Safety Complex Regulatory Agricultural Sciences Compliance Industry Cluster Focus Financial Services Support Aircraft and Aviation Components Health Care IT From an economic perspective, the Innovate Northeast Florida Economic Development Strategic Plan, completed by JAXUSA and Northeast Florida Regional Council (NEFRC) in 2012, includes Advanced Transportation as one of three (3) industry ecosystems that differentiate the Region on a national and international level. Advanced Transportation includes many elements such as aviation, clean fuels, rail and port logistics, distribution centers and supply chain management. It is important to note the strong connection with the region s economic development only serves to strengthen the argument of the relevance of the North Florida Region to Statewide related efforts and matching industry sector targets. Information Technology Regulatory Compliance Lean Manufacturing Military Supply Chain Management/IT Overview 1 6

10 INFRASTRUCTURE RTSC Corridors Regional Transportation Study Commission The (RTSC) identification Corridors of freight related projects within stakeholder plans was completed in coordination with RTSC efforts to identify regional corridors and roadways. As a result of this coordination of plan processes, freight improvement priorities align with the region s corridor framework and may be eligible for potential future funding of RTSC improvement needs. Lastly, for the past two years, the Northeast Florida Regional Transportation Study Commission (RTSC) effort has explored the need for coordinating regional transportation in the seven county region including Baker, Clay, Duval, Flagler, Nassau, Putnam and St. Johns IMPROVEMENT counties. Through PRIORITIES this two year process, the RTSC evaluated growth Freight, and travel logistics patterns, and studied intermodal peer regions, facilities and are assessed vital potential to North gaps Florida s economy. in providing Anticipated regional mobility. growth in As the a result, trade the and RTSC logistics identified sector travel will place additional corridors of demands regional significance on the transportation to provide connectivity system and advance will require additional economic infrastructure development for improvements. the region. Additionally, Careful the planning RTSC has of the region s outlined infrastructure a for is implementing necessary to further a regional position transportation North Florida plan. as a globally A Northeast significant Florida freight, Regional logistics Transportation and intermodal Commission hub. (RTC) was Stakeholder recommended Plans, to be Programs created. Their and role Studies will be to coordinate existing State, planners regional and implementers and local to advance plans, a regional programs transportation and studies plan and identify transportation position our region infrastructure to compete needs for economic for North growth Florida. while maintaining Many of these projects our high are quality directly of life. related to freight movement. They are either on the SIS, emerging SIS, or planned by FDOT to be on the SIS (as in the case As of part the of First the Regional Coast Outer Corridors Beltway Plan, and international SR 9B). The water projects corridor may also connect was designated an SIS corridor to include with the Port an of SIS Jacksonville hub; help and facilitate Port of Fernandina travel between and and near related SIS rivers hubs; and near waterways industrial called areas; the International or serve as Corridor potential (RC relievers to SIS corridors. 9). In addition to designating a non-surface transportation corridor, The the freight RTSC infrastructure and its documents improvement recognized the priorities importance identified of the for freight, this framework logistics, intermodal plan draw and from transportation multiple stakeholder industry plans as it relates and programs. to the regional economy and mobility. Florida Department of Transportation s (FDOT) Five Year Work Program, Fiscal Year The FDOT North SIS Florida 1 st Five TPO Year will Plan, be incorporating the key work products of FDOT the RTSC SIS 2within nd Five the Year, Long Range Transportation Plan (LRTP) update FDOT scheduled SIS Cost for Feasible January Plan, 2013-November The region s ability, in FDOT particular SIS Unfunded the TPO and Needs FDOT, Plan, to collaborate 2040 (October on planning 2011) initiatives Florida Rail System Plan: Investment Element (December 2010) and to demonstrate connected modal systems is another testament Florida 2012 Priority Seaport Projects, Florida Ports Council to our region s key role in meeting state transportation and economic Florida Seaport System Plan, FDOT, December 2010 development North Florida objectives. TPO 2035 Adopted Cost Feasible Plan (Long Range Transportation Plan LRTP) North Florida TPO s 2035 Adopted Needs Plan (LRTP) JAXPORT Capital Project Summary, FY 2013 (5 Year Capital Plan) Port of Fernandina overview 1 7

11 Plan Approach and Components This framework plan was developed around several key study areas including: understanding partners, evaluating peer regions/ports, and linking efforts to other initiatives. As with most industries, there are multiple groups and agencies with many roles and responsibilities. Understanding the players and various agency structures will serve to elevate the conversation regarding future plans, programs and initiatives. Freight, Logistics, & Intermodal Partners As shown in the venn diagram, a framework plan for the region will connect with many public and private partners. The North Florida Transportation Planning Organization (TPO), together with the North Florida Freight, Logistics, & Intermodal Framework Plan Partners & Stakeholders Florida Department of Transportation (FDOT)* 2060 Florida Transportation Plan Strategic Intermodal System (SIS) Statewide Modal Plans Florida Freight, Mobility & Trade Plan 5-Year FDOT Work Program Private/Business Sector Florida Chamber Foundation* Rail Carriers Private Marine Terminals Logistics Industry JAX Chamber JAXUSA Partnership North Florida Freight, Logistics, & Intermodal Framework Plan North Florida Transportation Organization (TPO) 2040 Long Range Transportation Plan (LRTP) Regional ITS Master Plan Transportation Improvement Program (TIP) * Florida Trade and Logistics Study, December 2010 (Joint FDOT and Florida Chamber Foundation Study) Local/State/Federal Agencies JAXPORT Port of Fernandina JAA & JTA Cities/Counties Military/USACE NEFRC US DOT Florida Department of Transportation (FDOT) will continue to play key roles in moving forward. From the State perspective, FDOT has been charged with preparing and executing a statewide freight initiative through the development of the Freight Mobility and Trade Plan and other related support activities and programs. Additionally, HB 599 includes several provisions regarding FDOT interface with the Florida Seaport Transportation and Economic Development Council as well as programs specific to ports such as the Strategic Port Investment Initiative and Intermodal Logistics Center Infrastructure Support Program, and the development of a Statewide Seaport and Waterways System Plan. Overview 1 8

12 The North Florida TPO will continue to support the freight and logistics planning work through the 2040 Long Range Transportation Plan (LRTP), the Transportation Improvement Program (TIP), and other consensus based or regional convening efforts such as the ITS Coalition and Clean Cities initiatives. Working directly with the Logistics Advisory Group (LAG) and other business partners, the North Florida TPO continues to see success in advancing important freight supportive projects and studies. Another example of this is the on-going North Area/JIA Corridor: Future Rail Feasibility Study that is managed and jointly funded by the TPO and City of Jacksonville. As noted, many local/regional entities will play roles in advancing this framework plan into implementation. For example, JAXUSA and the Northeast Florida Regional Council (NEFRC) jointly developed the Innovate Northeast Florida Economic Development Strategic Plan which will be adopted into both business related action plans with the Chamber and others, as well as public policy plans for the region. Lastly, at the Federal level, the development of the National Freight Strategic Plan and the provisions of freight focused programs and processes of MAP-21 further support the call for action for the Region, given the extensive freight, logistics, marine terminals and intermodal infrastructure and its unique proximity to the State of Florida and eastern United States. Linkages to Partner Plans An evaluation was conducted on several partner plans and studies to gain an understanding of how the goals and missions align with the freight and logistics industry for the North Florida Region. As noted in the comparison circle graph, the following plans and programs were compared: 2060 Florida Transportation Plan Strategic Intermodal System (SIS) Plan(s) 2035 Long Rang Transportation Plan (LRTP) Northeast Florida Strategic Regional Policy Plan (SRPP) Florida Chamber Six Pillars Florida Trade and Logistics Study Innovate Northeast Florida Regional Transportation Study Commission (RTSC) overview 1 9

13 While there are many other local, regional and state plans and programs that could have been included, the assessment of these eight (8) indicates a strong alignment with the ideas and precepts of the framework plan. For the purposes of this evaluation, relevant goals and objectives from the evaluated plans were categorized into the three (3) building blocks of the framework plan: Infrastructure, Markets, and Business Climate. Overview 1 10

14 What we have learned? A competitive analysis was conducted for peer regions and ports to gain an understanding of their plans, processes and strategic missions. While each peer region and port has unique characteristics regarding infrastructure, markets and business climate, all peers were consistent in organizing around these three topical areas. Furthermore, there were three strategic areas that were focused on by the peer regions and ports. The three strategic areas included: Planning, Partnerships, and Process. Planning The relevant aspect of planning is that most of the peers have developed short and long range plans, strategic visions, and capital improvement programs. As important is the commitment to planning being a continuous effort with on-going updates and enhancements. The North Florida Region has taken a leadership role in regional planning and the State of Florida has also ratcheted up the evaluation, commitment and development of plans to support industry growth. Partnerships Again, most of the peers included specific partnering actions that include the emerging Private/Public Partnerships (P3), but also encouraged significant partnering between various governmental entities at the local, state and federal levels, with an emphasis on local and state partnerships. For Georgia, South Carolina and Virginia, State Port Authorities provide an advantage to these types of partnering. Lastly, the opportunity to promote Private-Private partnerships is not new but may offer a renewed opportunity for the freight industry and port operations. The railroads and shippers have developed extensive agreement instruments, however, there is a renewed level of cooperation between shippers and terminal operators with the development of market based services where multiple shippers cooperate on scheduled services using mixed corporate vessels. Process At all levels of government and business lies a set of policies, procedures and permitting requirements. The research conducted reveled that the peers and regions developed specific approaches to understanding the process requirements at all levels and strived to be part of the process rather than viewing it as an impediment to overcome. Streamlining processes has garnered much attention nationally and at the state level. Florida too is continuing to review processes that can be improved to facilitate decisions, reduce approval timelines and provide the level of certainty the private/business sector requires to make commitments. overview 1 11

15 Here is what we know. The North Florida region is strategically positioned to continue to build upon our successes in the freight, logistics, intermodal and transportation industry sector. While much has been done to improve infrastructure, market reach and business climate for the region, there are several key variables/components that provide the foundational building blocks for continued growth and success. Geography North Florida and its two deep water ports in Jacksonville and Fernandina are physically in a prime location relative to the eastern seaboard. These ports are in fact the WESTERN MOST ports along the eastern seaboard. In fact, North Florida ports lie along a north-south line with Cleveland Ohio Connectivity The level of connectivity to the North Florida region is unmatched. From a highway perspective, having Interstate 95 running through our region connecting the east coast of the US with Florida is impressive alone. However, our region also serves as the east coast terminus for Interstate 10 which connects our region along an east-west route to the southwest, western states, and Pacific Ocean. A third interstate, I-295 connects both of these interstates and provides direct access to major JAXPORT and other marine terminals, along with two rail intermodal yards for CSX and Norfolk Southern railroads. Just minutes west along I-10 is Interstate 75, the nation s central spine connecting Florida, southeastern and midwestern states. Overview 1 12

16 From a rail perspective, North Florida sits at a key junction for three railroads, CSX, Norfolk Southern (NS) and Florida East Coast (FEC). In fact, CSX, headquartered in Jacksonville, maintains the largest rail network in Florida and will soon provide enhanced connectivity to the Dames Point and Blount Island marine terminals with the Intermodal Container Transfer Facility (ICTF) at Dames Point. Norfolk Southern maintains its Florida terminus in Northwest Jacksonville and provides direct service to the Talleyrand Marine terminals, other key sites along the St. Johns River, and inland facilities. Florida East Coast also maintains corporate operations in North Florida and its northern terminus is located in Jacksonville including a river bridge in Downtown that facilitates connections to the CSX and NS railroads. overview 1 13

17 Land Based Infrastructure North Florida maintains a significant amount of support infrastructure such as distribution centers, warehousing, industrial and manufacturing facilities. In fact, this region includes more than 100 million square feet (SF) of such space and has added nearly 10 million SF in the past 5 years, including 1.1 million SF in The opportunity to grow this sector is significant given the amount of developable land at existing sites, as well as growing areas such as Cecil Commerce Center in Duval County just north of Clay County, the Crawford Diamond site in Nassau County, and the Woodstock Industrial Site in Baker County, to name just a few. Developing a comprehensive assessment of the region s existing and future (planned) land based infrastructure is a key recommendation. Markets North Florida ports and intermodal systems have continued to grow, even during the great recession. Three strong examples include growth in containerized units (TEUs), autos, and steel exports. For JAXPORT, 2009 through 2012 has seen continued growth in both container TEUs and the number of automobiles, known as RORO, for roll-on-roll-off. As depicted in the tables, the number of TEU s has grown to over 923,660 TEUs in This represents a record number, as well as being the Number 1 container port in Florida also saw JAXPORT grow to become the Number 1 port for vehicle exports in the United States. Similar to the containers, the total number of auto units handled at these facilities grew since 2009 to total 608,726 vehicles for An example of this growth includes the exporting of new Honda CR-V SUVs manufactured in Liberty, Ohio beginning in Overview 1 14

18 The Port of Fernandina saw continued growth as well. For , the Port saw its steel exports exceed 318,000 short tons and represents the largest steel export port in Florida. This niche market in Fernandina accommodated 75% of the steel rods arriving to the port via rail. Clearly, the geography, rail, highway and marine infrastructures provide the needed support facilities to leverage the market business decisions that have occurred in the past few years. overview 1 15

19 The Big 3 Status Update While the framework plan is geared toward a continuous planning process and plan enhancements, much of the news and regional conversations have surrounded three (3) large infrastructure projects that are ongoing and soon to be reaching key milestones. Mile Point Navigational Fix The Mile Point Navigational fix project will rectify an issue with river currents related to the Intracoastal Waterway and St John s River confluence. This navigational impediment limits the number of hours certain larger ships can navigate this portion of the river and therefore limits the hours of loading and off-loading at the docks. Key milestones for the project include: Pre-construction design completed May 2013 Estimated construction completed Intermodal Container Transfer Facility (ICTF) The ICTF at Dames Point represents a important intermodal improvement that will provide near-dock loading and off-loading of containers to and from ships and rail cars. For imports, the ICTF will allow for the building of trains and blocks near the arrival docks, therefore eliminating the need to dray the containers via trucks to the rail intermodal yards on the Westside of Jacksonville. The ICTF, at $30 million was made possible with funding from the FDOT and a US DOT TIGER Grant of $10 million. The success of the TIGER grant was due to the regional cooperation of many players that developed a focused and single application for the program. Key milestones for the project include: Procurement of Design Build contractor early 2013 Construction completed late Overview 1 16

20 Jacksonville Harbor Deepening The deepening and widening of the Jacksonville Harbor in the St Johns River represents the largest of the three projects and has been ongoing for a number of years. On July 19, President Barack Obama named two JAXPORT projects to a list of seven priority infrastructure projects, pledging to accelerate the federal review process. The president has committed that the Jacksonville Harbor Navigation Deepening Study will be completed by April 2013, approximately one year ahead of schedule. Key milestones for the project include: Economic and Environmental Reports completed April 2013 Open or Base Year for expanded harbor overview 1 17

21 What does this mean for the region? Throughout the development of the North Florida Freight, Mobility, & Intermodal Framework Plan, the convergence of key ideas, themes and findings began to occur. Earlier in this report section, and presented additionally in subsequent sections are findings regarding the region s infrastructure, markets and business climate. Additionally, the research and due diligence conducted as part of the study contained an indefinite amount of information and sets of numbers related to cargo flows, mileages of infrastructure, commodity forecasts, containers transferred, ship calls, etc and the list can go on and on. The challenge is that in this industry the numbers are ever changing, and as such, development of plans and policies need to be focused on more than the numbers. In fact, given the increased growth presented earlier in several markets and areas, it became clear that our region s geography, extensive infrastructure, market access, and business climate all tell a story beyond the numbers gate way / gat,wa/ n. 1. Something that serves as an entrance or a means of access...allows an entity to achieve a desired goal. North Florida is a cornerstone region for the State of Florida and also the United States. The Region s abilities and capabilities offer to serve Florida and the Nation as a key GATEWAY for commerce, freight flows, logistics and intermodal activities. Overview 1 18

22 The following pages present the recommendations and action items for the North Florida Freight Logistics, & Intermodal Framework Plan. These recommendations and actions are presented for Infrastructure, Markets and Business Climate and are preceded with Guiding Principles for the Plan. Details regarding the recommendations are contained in the subsequent report sections with a brief summary presented here. Guiding Principles for Plan The guiding principles for the plan represent an overarching tone and tenor to moving the needle for the North Florida Region. This Region IS A GATEWAY It is the responsibility of the Region s leaders to assume this role and begin to make decisions with the mission of serving beyond the region. While our rich infrastructure systems are clearly assets, as important is the Region s proven record of coordination and collaboration. The North Florida TPO, FDOT, JAXPORT and other regional partners have established a level of collaboration unparalleled in Florida. With the speed of business and the ever changing freight and logistics industry, this asset cannot and should not be overlooked. As a Gateway region, it is important to recognize that the State s 19 million citizens is a market within itself. As such, it is recommended that a ONE FLORIDA approach be taken in serving Florida and to coalesce around our state in order to better assess the national and state significance thresholds need to make investment decisions. A sound example is the Memorandum of Understanding (MOU) between the Greater Miami Chamber of Commerce and the JAX Chamber. This MOU states that these two regions will work together to enhance the economic wellbeing of both regions related to areas of transportation and logistics and specifically for expanded development of our ports and to foster development of freight corridors. Gateway Role for State and Nation This is a given based on geography and infrastructure Leverage our existing niches at current channel depths Coordination/Collaboration as an Asset Unique North Florida TPO, FDOT, JAXPORT relationships Integrate into business & public partners One Florida Business Approach JAX and Miami Chamber MOU Include National/State Significance metrics for decisions overview 1 19

23 Recommendations - INFRASTRUCTURE During the next months, specific infrastructure improvements will be brought forward through FDOT 5-year project programming; JAXPORT s strategic master plan, Port of Fernandina s strategic master plan, as well as others. The following recommendations are presented to keep momentum in areas of concern and to set the stage for advancement. All three (3) intermodal rail yards in the region are working near capacity or record levels. It is important to recognize the importance of these yards and the direct relationship they have to the highway and local roadway system. Further emphasis and evaluation should be undertaken on assuring the last mile of access to the intermodal yards are kept in a priority position. The ongoing rail corridor study presents a potentially game changing opportunity to better connect the ICTF, Port of Fernandina and other facilities to rail mainlines. Lastly, as both ports update their respective master plans, the application of Green Ports and alternative fuels should be considered in the future. Intermodal Yard Improvements Focus CSX, NS & FEC expansion plans Truck access to yards or last mile Co-locate manufacturing near yards North Area/JIA Corridor Future Rail Feasibility Study Linkage to Intermodal Container Transfer Facility (ICTF) Economic development concentration along route Evaluate opportunities at JIA and Tradeport Alternative Fuels & Green Ports Develop policies and programs for freight trucking, logistics and municipal fleets for alternative fuels Incorporate green practices in Port Strategic Master Plans Overview 1 20

24 Recommendations MARKETS Success breeds success and also attracts competitors. It is important to recognize that attracting new markets is extremely important, but not at the expense of losing sight of existing markets and growth opportunities. It is necessary to leverage the strong existing markets and commodities such as automobiles and Caribbean/South American trading partners. The success of market and trading lanes expansion is evident with the TraPac terminal and Asian shipping lines calling on marine terminals. Attracting the Disney based imports is a first step. The challenge is to identify the next 3 or more Asian container redirects to North Florida. Lastly, the ability to lever our expansive manufacturing and distribution center industries is made even more clear when reconciled with HB 599 s directive for Intermodal Logistics Centers, manufacturing and value added activities coupled to the freight and logistic sectors. Protect Existing Markets & Developing Niches Leverage the strength of existing markets (40 channel) Strategic Plan Priority for JAXPORT and Port of Fernandina Asian Containers Recapture Identify next 3 Disney redirects Set a goal for redirecting Florida s 3.1 m TEU leakage Manufacturing/Distribution Center Expansion Update 2005 Industrial Land Use Plan (COJ) Develop a regional Intermodal Logistics Center (ILC), inland port & Distribution Center (DC) expansion plan overview 1 21

25 Recommendations BUSINESS CLIMATE Due to the current state of North Florida s infrastructure system, with its relatively high level of service and existing capacity, ongoing and future investments in our region s infrastructure will potentially yield higher benefit-cost ratios when compared to other regions. The North Florida region will need to demonstrate the positive Return of Investment (ROI) from projects in our region and to demonstrate State and National Significance. Additional recommendations include: expanded role of the Logistics Advisory Group (LAG); support for other on-going regional initiatives including a business focused alliance; implementation of Innovate Northeast Florida; and strengthen industry education. Return on Investment (ROI) Assessment for Northeast Florida ROI for Completed Infrastructure + Future Investments Opportunity Costs related to capacity in system Implement Northeast Florida Recommendations Regional Transportation Initiatives Regional Transportation Study Commission (RTSC) projects inclusive of port, freight, and intermodal infrastructure Develop regional transportation focused business alliance Support FHWA s Marine Highway designation Enhanced Industry Education Programs UNF Transportation & Logistics Flagship Program Focused Workforce Florida and International Training Overview 1 22

26 st Florida three industry ecosystems ational level. In addition, tencies that run throughout ecosystems and core st Florida s long-term growth. prioritized four sub-clusters. ed Transportation tics ms Tracking Device & Security Systems Distribution Centers Supply Chain Management & IT Industry Cluster Focus Aircraft and Aviation Components Priorities for North Florida: Next 12 months Position North Florida as National, State and Regional Gateway National Freight Network & Strategic Plan Work with FDOT and partners to maximize North Florida s network mileage and facilities on the National Freight Network are g king & Life Sciences are & Marine Sciences Insurance gies Administrative Services Complex Regulatory ces Compliance Financial Services Support Health Care IT Demonstrate national significance of North Florida Region Florida s Freight Mobility and Trade Plan Provide leadership and high level of engagement in Plan Conduct analysis and studies to demonstrate State significance of North Florida Region Military Innovate Northeast Florida Supply Chain Management/IT Innovate Northeast Florida Implementation Complete activities for Advance Manufacturing, Logistics and Physical Infrastructure core target industries and components Advance implementation for Supply Chain Management/IT, Clean Fuels, and Distribution Centers target sub-clusters Conclusion In light of the need for the region and its partners to assume the responsibility to be the GATEWAY to Florida and the Nation, it will take much more than coordination and consensus-building. Rather, this effort will require a tactical approach to collaboration which seeks to leverage our region s geographic, infrastructure, and business-friendly competitive advantages to serve the Region, State and Nation. Coordination is civil collaboration is tactical overview 1 23

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28 BUSINESS CLIMATE 2 Infrastructure INTRODUCTION Infrastructure is the backbone to the freight and logistics industry, supported heavily by a INTRODUCTION favorable business climate, which attracts and provides opportunity for economic growth and vitality in the North Florida North region. Florida The plays North an integral role in the nation and state of Florida s Florida region s logistics industry is working hard transportation to position system, itself providing for a gateway to reach overseas destinations; significant growth, driven by domestic growth and connecting emergence Florida as to an domestic markets. The region s well-developed international global hub. This moment in time provides a tremendous freight, logistics, and intermodal transportation system consists of opportunity for the North Florida region to cultivate an environment several modal components, summarized in this Infrastructure section. enabling business leaders to help the region maintain and elevate its economic competitiveness, encouraging job creation North Florida s and retention, transportation system includes highway, rail, marine, and through a favorable business climate. This section air describes facilities, which how all North contribute to the economic vitality of the region. Florida s business climate is affected by regional, Careful state, planning national of the and region s transportation infrastructure and freight global trends related to demographics; plans and related policies; land and uses economic is necessary to further position North Florida as a opportunities. globally significant freight, logistics and intermodal hub. CONDITIONS AND OPPORTUNITIES CONDITIONS AND OPPORTUNITIES improvement priorities SUMMARY AND RECOMMENDATIONS summary and recommendations infrastructure 2 1

29 CONDITIONS AND OPPORTUNITIES The region s location at the intersection of major interstate and rail systems, along with the presence of two deepwater ports, help make the region attractive to do business. These facilities are critical competitive elements within the region. Highway At the crossroads of three major interstates, Interstates 10, 95 and 295, with Interstate 75 just 18 miles west of the region, in addition to a network of major and minor arterial roadways, North Florida conveniently provides access to the rest of Florida and the nation. National Highway System Routing North Florida Major Roadways infrastructure 2 2

30 t do so on gateway, odal rail (NS), both II regional Rail Most freight traveling by rail in and out of Florida must do so on North Florida s rail infrastructure. Strengthening its role as a gateway, the region is at the junction of the rail lines and intermodal rail terminals of three key rail carriers: CSX and Norfolk Southern (NS), both Class I railroads, and Florida East Coast Railway (FEC)), a Class II regional railroad; along with short line railroads. National Rail Network and Primary National Rail Network and Primary Rail Rail Corridors Corridors North Florida Major Rail Lines S AND INTERMODAL FRAMEWORK PLAN infrastructure 2 3

31 DRAFT NORTH FLO INFRASTRUCTURE Marine Terminals INFRASTRUCTUR Marine Terminals North Florida s deepwater seaports, gateways to North Florida s deepwater seaports, gateways to reach overseas reach overseas destinations, consist of The Port of Jacksonville, the destinations, consist of The Port of Jacksonville, the major port within major port within the region; and the Port of Fernandina, a niche port the region; and the Port of Fernandina, a niche located port located to the to north the north in Nassau County. Carrying container, break bulk in Nassau County. Carrying container, break bulk and and bulk bulk commodities, the Port of Jacksonville has the opportunity to the Port of Jacksonville has the opportunity to leverage the the benefits of of over over 20 marine terminals, including Jacksonville JAXPORT Port Authority (JAXPORT), military and several private terminals. 20 marine terminals, including Jacksonville Port Authority ( JAXPORT), JAXPORT terminals, Blount Island, Dames Point and Talleyrand, total military and several private terminals. JAXPORT terminals, Blount over 1,500 acres. The TraPac Container JAXPORT-Talleyrand Terminal at Dames Terminal Point is Island, Dames Point and Talleyrand, total over JAXPORT s 1,500 acres. major The container TraPac terminal, consisting JAXPORT of 158 acres and serving Container Terminal at Dames Point is JAXPORT s as Mitsui major O.S.K. container Lines, Ltd. (MOL) JAXPORT East Coast hub. Detailed seaport Port of Fernandina terminal, consisting of 158 acres and serving as terminal Mitsui O.S.K. graphics Lines, are contained Ltd. in the appendix. (MOL) East Coast hub. Detailed marine terminal graphics are contained in the appendix. Port of Fernindina Port of Fernandina Port of Fernandina INFRASTRUCTURE Ma rea ma loca and leve Por JAX ove JAX as term Port of Jacksonville Marine Terminals DRAFT NORTH FLORIDA FREIGHT, LOGISTICS AND INTERMODAL FRAMEWORK PLAN infrastructure 2 4

32 dled by t of the dicated sonville dled by ill help of the aviation dicated he Cecil sonville space ill named help aceport viation tructure e Cecil space lorida s named ceport ructure receive lorida s SIS was to help onomic receive reflect SIS egrated was o nal help and onomic out the carrying reflect and/or grated d in the nal and out the arrying and/or in the Air Freight Air Freight Air Freight Truck Volumes on Florida SIS Roadways Truck Volumes on on Florida SIS SIS Roadways Air Freight Although a smaller market relative to tonnage handled by other modes of transportation, aviation services are also part of the region s freight movement. Several passenger airlines and dedicated all-cargo airlines provide air cargo service at the Jacksonville International Airport ( JIA). It is anticipated that Cecil Airport will help support economic development within the region, serving both aviation and aerospace dependent industries. The airport is adjacent to the Cecil Commerce Center and recently was designated a spaceport and space territory by the state of Florida (HB59). As a result, the newly named Cecil Field Spaceport can be included in Space Florida s Spaceport Master Plan, which includes recommendations for infrastructure projects. FDOT is also planning to add the spaceport to Florida s Strategic Intermodal System (SIS). Florida s Strategic Intermodal System (SIS) North Florida s strong presence of SIS facilities helps the region receive state funding for freight infrastructure improvements. Florida s SIS was established to efficiently serve Florida s mobility needs and to help Florida become a worldwide economic leader, enhance economic prosperity and competitiveness, enrich quality of life and reflect responsible environmental stewardship. The SIS is an integrated transportation network made up of major facilities of interregional and statewide significance from all modes of transportation, throughout the state of Florida. SIS facilities are high-priority facilities carrying significant amounts of truck, rail, waterborne and air freight and/or passengers. North Florida SIS facilities for all modes are depicted in the Appendix. AND INTERMODAL FRAMEWORK PLAN infrastructure 2 5

33 Industrial, Warehousing and Distribution Centers In addition to the transportation infrastructure, North Florida has 100 million square feet of industrial building space, consisting of warehouse/ distribution, manufacturing, R&D/Flex and other industrial uses. Often located within industrial parks, industrial facilities help facilitate the processing and movement of goods from origins to destinations. North Florida has sizable industrial parks/sites, such as Cecil Commerce Center, a 1,500+ acre certified mega site, one of only 15 in the U.S. Other industrial parks/sites are under development, such as the Woodstock mega site in Baker County and the Crawford Diamond mega site in Nassau County. Winn Dixie Baldwin Distribution Center: 1.2 Winn Dixie Baldwin Distribution Center: million square feet of warehouse space 1.2 million square feet of warehouse space Indu trans feet manu withi and m sizab acre parks Bake Industrial Sites DRAFT NORTH FLOR infrastructure 2 6