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NEVADA STATE FREIGHT PLAN APPENDIX 3: CONTEXT and COMPETITIVE MARKET ANALYSIS a Strategic Framework for Freight Mobility and Economic Competitiveness

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NEVADA STATE FREIGHT PLAN APPENDIX 3: CONTEXT and COMPETITIVE MARKET ANALYSIS a Strategic Framework for Freight Mobility and Economic Competitiveness NEVADA STATE FREIGHT PLAN APPENDIX 3: CONTEXT AND COMPETITIVE MARKET ANALYSIS A strategic framework for freight mobility and economic competitiveness SEPTEMBER 2016 PIPELINE SHIP PLANE TRAIN TRUCK VANCOUVER SEATTLE SPOKANE PORTLAND RENO ELKO SAN FRANCISCO SALT LAKE CITY OAKLAND ELY DENVER LAS VEGAS LOS ANGELES PHOENIX SAN DIEGO EL PASO APPENDICES Part 3: Context & Competitive Market Analysis 3A. Competitive Market Analysis 3B. Nevada’s Share of Employment and Personal Earnings by Economic Region 3C. Major Multimodal Freight Transportation Drivers and Critical Issues Prepared for Nevada Department of Transportation September 1, 2016 Appendices Part 3: Appendix 3A Competitive Market Analysis Prepared for Nevada Department of Transportation September 2016 Contents Section Page 1 Introduction.............................................................................................................................. 1-1 1.1 Intention of the Freight Plan........................................................................................... 1-1 1.2 Freight as a Component of the Global Network ............................................................... 1-1 1.2.1 Freight Categories ............................................................................................. 1-1 1.2.2 Supply Chains .................................................................................................... 1-2 1.3 Global & Local Competitive Focus ................................................................................... 1-3 1.3.1 Freight Hubs: Global, Inland Port, and Local ........................................................ 1-3 1.3.2 Economic Implications of Hub Status .................................................................. 1-5 1.4 Competitive Market Analysis .......................................................................................... 1-5 2 Building the Case: A Freight System for Economic Development................................................. 2-1 2.1 Assessment of the Freight System on Economic Activity .................................................. 2-1 2.1.1 Overview .......................................................................................................... 2-1 2.1.2 Major Corridors ................................................................................................. 2-2 2.1.2.1 The Northern Corridor ....................................................................................... 2-2 2.1.2.2 The Southern Corridor ....................................................................................... 2-2 2.1.2.3 Other Corridors ................................................................................................. 2-2 2.1.2.4 The Missing Major Corridor: I-11 ........................................................................ 2-3 2.1.3 Trading Partners ................................................................................................ 2-6 2.1.4 Modal Analysis .................................................................................................. 2-7 2.1.4.1 Trucking ............................................................................................................ 2-7 2.1.4.2 Rail 2-8 2.1.4.3 Ocean and Foreign Trade ................................................................................... 2-9 2.1.4.4 Air 2-10 2.1.4.5 Intermodal Rail ................................................................................................ 2-11 2.1.4.6 Pipelines ......................................................................................................... 2-13 2.2 Nevada in a National Context: Urbanization & Economy ................................................ 2-13 2.2.1 Urbanization ................................................................................................... 2-13 2.2.1.1 Population Growth .......................................................................................... 2-15 2.2.1.2 Population Impact on Freight Patterns .............................................................. 2-15 2.2.2 Economic Activity ............................................................................................ 2-16 2.2.2.1 Growth and Change in the World Economy ....................................................... 2-17 2.2.2.2 GDP by Metropolitan Area ............................................................................... 2-19 2.2.3 Unemployment ............................................................................................... 2-20 2.2.4 Fortune Global 500 Headquarters: 1990-2014 ................................................... 2-22 2.2.4.1 Interaction between Fortune 500 Companies and Freight Patterns..................... 2-24 2.3 Conclusion .................................................................................................................. 2-24 3 A New Freight Logistics Model for the New Nevada ................................................................... 3-1 3.1 The Existing Freight Logistics Model................................................................................ 3-1 3.2 Redefining the Freight Logistics Model............................................................................ 3-2 3.2.1 Market Access: From Corridors to Crossroads ..................................................... 3-3 3.2.2 Metro Modal Configuration: From Fragmentation to Integration.......................... 3-4 3.2.3 Capacity and Performance ................................................................................. 3-5 3.3 Preliminary Insights from the Profile Analysis .................................................................. 3-5 NSFP APPENDICES: PART 3 – APPENDIX 3A i 4 Nevada’s Economic & Freight Logistics Relationships ................................................................. 4-1 4.1 Economic Regions.......................................................................................................... 4-1 4.2 A State in Transition....................................................................................................... 4-2 4.3 Economic Activity & The Freight Network ....................................................................... 4-2 4.3.1 Northern Nevada/California ............................................................................... 4-3 4.3.1.1 Logistics Infrastructure Overview........................................................................ 4-3 4.3.1.2 Economic Overview ........................................................................................... 4-5 4.3.1.3 Industrial Real Estate Overview .......................................................................... 4-6 4.3.1.4 Recent Developments Indicating Future Trends................................................... 4-8 4.3.2 Southern Nevada/California ............................................................................... 4-9 4.3.2.1 Logistics Infrastructure Overview........................................................................ 4-9 4.3.2.2 Economic Overview ......................................................................................... 4-12 4.3.2.3 Industrial Real Estate Overview ........................................................................ 4-12 4.3.2.4 Recent Developments Indicating Future Trends................................................. 4-13 4.3.3 Eastern Nevada/Utah....................................................................................... 4-14 4.3.3.1 Logistics Infrastructure Overview...................................................................... 4-14 4.3.3.2 Economic Overview ......................................................................................... 4-14 4.3.3.3 Industrial Real Estate Overview ........................................................................ 4-16 5 Conclusions............................................................................................................................... 5-1 5.1 Key Drivers, Opportunities, and Challenges ..................................................................... 5-2 5.1.1 Preliminary Opportunities .................................................................................. 5-3 5.1.2 Preliminary Challenges....................................................................................... 5-4 5.2 Where do we go from here?........................................................................................... 5-5 6 References................................................................................................................................ 6-1 List of Figures Figure 1 Supply Chain Overview ...........................................................................................1-2 Figure 2 Inland Port Connections .........................................................................................1-4 Figure 3 Nevada Statewide Freight Flows by Direction of Movement, 2012 ............................2-2 Figure 4 Nevada's Existing Freight System Infrastructure .......................................................2-3 Figure 5: Creating the Future Corridor System of Nevada in the Western US ..........................2-4 Figure 6 Conceptual Diagram of the Western NAFTA Corridor in the National Context ............2-5 Figure 7 Western US Highway Freight Flows .........................................................................2-7 Figure 8 Western US Railroad Freight Flows, 2010 ................................................................2-8
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