Freight Workshop & Industry Forum Thumb & Central Michigan Wednesday, September 16, 2020 General Session: 9:00-10:30 am Industry Forum: 10:30-11:30 am

WELCOME

Todd White MDOT Planning Director MM2045 Overview Brad Sharlow INTRODUCTIONS

Todd Davis – Project Manager Bradley Sharlow – Project Manager Jeanne Stevens – Deputy PM Kyle Haller – Deputy Project Manager Joe Bryan – Freight Lead Elisha Wulff – Freight Lead Bridget Wieghart – Freight Sara Moore – Rail Lead Joe Gurskis – Rail Lead Nikkie Johnson – Rail Alex King – Rail Jesse Gwilliams - Freight Virginia Lingham – Technology Todd White – Planning Director Shane Peck – Public Involvement Kelly Bartlett – Policy Lisa Kay Hummel – Public Involvement AGENDA

PART 1: General Session (9-10:30 am) • Overview of Michigan Mobility 2045 • Topical Discussions: 1. Highway Performance/Bottlenecks 2. Rail & Intermodal Performance 3. Marine & Air Performance 4. Technology 5. Economic Development • Wrap-up & Break (5 mins) AGENDA

PART 2: Industry Forum (10:30-11:30 am) • Recap Overview of Michigan Mobility 2045 • Industry Discussions: 1. Multimodal Performance Issues Affecting Supply Chains 2. Industry Trends Post-COVID 3. Issues in International Trade • Wrap-up & Next Steps What is a State Long-Range Transportation Plan (SLRTP)?

• Multi-modal, policy-based planning document that establishes the following for Michigan’s transportation system: • Vision • Goals • Objectives • Key Strategies • Federally required • 20+ year planning horizon • Michigan Mobility 2045 (MM2045) is currently in Phase 2 of development MM2045 Plan Integration

Long-Range Freight Rail Active Transit Strategic Plan MM2045 Public Outreach – Phase 1

30+ meetings & events around the state ‒ Pre-existing meetings/public events ‒ Reached 1,300 people MetroQuest Survey ‒ Interactive web-based survey ‒ 6,300 participants Attitudes and Perceptions (A&P) Survey ‒ Statistically valid transportation survey ‒ 1,500 people – representative population of Michigan Telephone Town Halls ‒ Public phone-based meetings ‒ 3,000 Michiganders participated MM2045 Upcoming Public Outreach – Phase 2

HAPPENING NOW!

Take & Share the MetroQuest survey today: www.michiganmobility.org

Survey will be open through October 2020 MM2045ˮ Vision

In 2045, Michigan’s mobility network is safe, efficient, future-driven, and adaptable. This interconnected multimodal system is people-focused, equitable, reliable, convenient for all users and enriches Michigan’s economic and societal vitality.

Through collaboration and innovation, Michigan will deliver a well-maintained and sustainably-funded network where strategic investments are made in mobility options that improve quality of life, support public health, and promote resiliency.ˮ

MM2045 Goals

SAFETY & SECURITY NETWORK MOBILITY QUALITY OF LIFE ECONOMY & PARTNERSHIP ENHANCE THE SAFETY CONDITION ENHANCE MOBILITY ENHANCE QUALITY OF STEWARDSHIP STRENGTHEN, EXPAND AND ENSURE THE THROUGH INVESTMENT CHOICES FOR ALL USERS LIFE FOR ALL IMPROVE THE MOVEMENT AND PROMOTE SECURITY OF THE STRATEGIES AND OF THE TRANSPORTATION COMMUNITIES AND OF PEOPLE AND GOODS TO COLLABORATION WITH TRANSPORTATION INNOVATION, PRESERVE NETWORK THROUGH USERS OF THE ATTRACT AND SUSTAIN ALL USERS THROUGH NETWORK FOR ALL USERS AND IMPROVE THE EFFICIENT AND EFFECTIVE TRANSPORTATION DIVERSE ECONOMIC EFFECTIVE PUBLIC AND AND WORKERS. CONDITION OF OPERATIONS AND NETWORK. OPPORTUNITIES WHILE PRIVATE PARTNERSHIPS. MICHIGAN’S RELIABLE MULTIMODAL INVESTING RESOURCES TRANSPORTATION OPPORTUNITIES. RESPONSIBLY. NETWORK SO THAT ALL MODES ARE RELIABLE, RESILIENT, AND ADAPTABLE. MM2045 Objectives – Freight

Network Condition: ‒ Achieve and maintain a state of good repair of transportation assets within the limitations of available resources ‒ Cost-effectively maintain, operate and upgrade assets to maximize the useful life ‒ Incorporate resiliency, adaptability, and redundancy in the transportation network, systems management, and operations Mobility: ‒ Improve access and connectivity between modes ‒ Mitigate travel delays and alleviate congestion to provide predictable, reliable travel times ‒ Leverage technology, communications, and management strategies to maximize safety and operational efficiency of existing systems ‒ Identify redundancy gaps in the network to ensure continued mobility in the event of disaster or other interruption MM2045 Objectives – Freight (cont.)

Economy and Stewardship: ‒ Pursue transportation asset and operational improvements that will expand access to economic opportunities, jobs, and core services ‒ Improve transportation connectivity to established and emerging activity centers and tourist destinations ‒ Create and enlarge competitive advantage for Michigan supply chains through higher productivity and dependability in the state freight system, supporting economic growth and strengthening economic resilience Partnership ‒ Ensure key transportation data is collected, maintained, usable, and accessible to transportation partners and the public. ‒ Strengthen collaborative partnerships between public and private sectors and leverage diverse investment opportunities. ‒ Strengthen coordination of transportation facilities and services between agencies and municipalities. MM2045 Implementation Strategies

• A plan of action or policy designed to achieve the goals and objectives • Short-Term Strategies (5 year) ‒ Very specific near-term, with possible performance measures/targets ‒ Link to Five-Year Transportation Program, S/TIP • Mid-Term Strategies (10 year) ‒ Slightly broader, but still measurable, with possible performance measures/targets ‒ Link to Transportation Asset Management Plan (TAMP) and other modal plans • Long-Term Strategies (25 year) ‒ More broad-based, qualitative ‒ No performance measures/targets ‒ Future-driven, technology-based ‒ Link to MPO long-range transportation plans MM2045 Timeline March – April 2021 Plan Development June – Sept. 2020 Public Input (Policy, Objectives, Strategies) April 2021 Draft Plan Complete (30-day comment period) July 2021 Adopt Final Plan (State Transportation Commission) Up Next: TOPICAL DISCUSSIONS

Topical Discussion #1: Highway Performance/Bottlenecks

Bridget Wieghart & Jesse Gwilliams MI Truck Freight Network 2018 & Bottlenecks Thumb / Central Michigan Truck Bottlenecks

Topical Discussion #2: Rail & Intermodal Performance

Alex King, Sara Moore & Nikkie Johnson Geographic Distribution of Rail Tonnage: Origination

Marquette County . Iron ore Saginaw County . Agricultural products Eaton County . Agricultural products, transportation equipment Wayne County – half of all Michigan- originated freight . Finished vehicles, metals, intermodal Geographic Distribution of Rail Tonnage: Terminations

Marquette County . Iron ore: intra-county Wayne County . Chemicals . Coal & Coke Ingham County . Coal Monroe County . Coal Agricultural Rail Network

• Wheat, barley & soybeans from the Saginaw Bay region, Central & Southern Michigan to Southeast for animal feed

Rail Tonnage Chemical Products Network

• Wayne County leading destination • Flows relatively dispersed • Midland County is the largest origin / destination in Central

Rail Michigan Tonnage Coal Rail Network

• Coal movements to power plants in Monroe, Ottawa, Wayne, Ingham & Bay Counties primarily from Wyoming & Pennsylvania

Rail Tonnage Transportation Equipment Rail Network

• Finished vehicles are shipped from Wayne, Macomb, Genesee & Eaton Counties

Rail Tonnage

Topical Discussion #3: Marine & Air Performance

Joe Bryan & Elisha Wulff

No responses submitted. No responses submitted. Air Cargo Tonnage No responses submitted. No responses submitted. Topical Discussion #4: Technology

Virginia Lingham & Kelly Bartlett Freight Technology Categories Freight Technology Examples

Connected Vehicles, FOCUS: Technologies that allow for Truck Platooning & greater productivity per labor hour Advanced Driving Systems MDOT is currently: • Deploying connected vehicle infrastructure and applications • Supporting off-road testing of CAVs through industry partnerships • Championing the piloting of new mobility solutions through unique grant programs • Actively engaging in dialog with peer agencies on best practices and consensus approaches • Participating in national research Freight Technology Examples

Positive Train Control & Other Safety Solutions • Technologies able to determine the precise location, direction and speed of trains; warn train operators of potential problems; and bring the train to a stop if the operator does not act • Technologies that monitor vehicle compliance with size and weight laws without stopping for manual inspection • Hours-of-Service/Electronic Logging Devices used to monitor commercial drivers’ compliance with regulations around work hours Freight Technology Examples

Energy Use & Fleet Electrification • Electric-powered trucks, including battery-electric and hydrogen fuel- cell-electric technology • Technology that allows for two-way communication between the utility and its customers, and the sensing along the transmission lines to respond to quickly changing electric demand • Any fuel besides petroleum-based fuels used to power transport vehicles Freight Technology Examples

Traveler Information & Probe Data Multiple uses of data: • Road weather information • Travel times • Pavement condition • Work zone details Anticipated Benefits of Freight Technologies by Category

No responses submitted. Topical Discussion #5: Economic Growth & Development

Joe Gurskis & Nikkie Johnson Thumb / Central Michigan Economy

Secondary Traffic – Key Commodity Freight Growth Very Significant Growth 3.3 Secondary Traffic Chemicals/ Machinery/ Chemicals or Allied Food Products – 2.8 Significant Growth Products Machinery Transportation 2.3 Food or Kindred Products Equipment/ Primary Metals – More Moderate Transportation Equipment Growth 1.8 Growth Index Primary Metals Nonmetallic Minerals – Flat 1.3 Nonmetallic Minerals

Farm Products – Slight Farm Products Decrease 0.8 2018 2025 2035 2045 Year

No responses submitted.

Up Next: INDUSTRY FORUM We will begin at 10:35 AGENDA

PART 2: Industry Forum (10:35-11:30 am) • Introductions / Request for Input • Industry Discussions: 1. Multimodal Performance Issues Affecting Supply Chains 2. Industry Trends Post-COVID 3. Issues in International Trade • Wrap-up & Next Steps INTRODUCTIONS

Todd Davis – Project Manager Bradley Sharlow – Project Manager Jeanne Stevens – Deputy PM Kyle Haller – Deputy Project Manager Joe Bryan – Freight Lead Elisha Wulff – Freight Lead Bridget Wieghart – Freight Sara Moore – Rail Lead Joe Gurskis – Rail Lead Nikkie Johnson – Rail Alex King – Rail Jesse Gwilliams - Freight Virginia Lingham – Technology Todd White – Planning Director Shane Peck – Public Involvement Kelly Bartlett – Policy Lisa Kay Hummel – Public Involvement What is a State Long-Range Transportation Plan (SLRTP)?

• Multi-modal, policy-based planning document that establishes the following for Michigan’s transportation system: • Vision • Goals • Objectives • Key Strategies • Federally required • 20+ year planning horizon • Michigan Mobility 2045 (MM2045) is currently in Phase 2 of development MM2045 Plan Integration

Long-Range Freight Rail Active Transit Strategic Plan Upcoming Public Involvement – Phase 2

HAPPENING NOW!

Take & Share the MetroQuest survey today: www.michiganmobility.org

Survey will be open through October 2020 MM2045 Timeline March – April 2021 Plan Development June – Sept. 2020 Public Input (Policy, Objectives, Strategies) April 2021 Draft Plan Complete (30-day comment period) July 2021 Adopt Final Plan (State Transportation Commission)

Industry Forum Discussion #1: Multimodal Performance Issues Affecting Supply Chains Bridget Wieghart & Alex King Thumb / Central Michigan Supply Chains Automotive & Transportation Eqpt. Food & Agriculture • Ordnance or Accessories • Farm Products • Textile Mill products • Fresh Fish or Marine Products • Rubber or Misc. Plastics • Nonmetallic Minerals • Primary Metal Products • Food or Kindred Products • Machinery • Tobacco Products • Electrical Equipment • Chemical or Allied Products • Transportation Equipment • Machinery Chemicals & Plastics Construction • Chemicals or Allied Products • Nonmetallic Minerals • Rubber or Misc. Plastics • Petroleum or Coal Products • Waster or Scrap Materials • Clary, concrete, glass, or Stone Metals & Machinery • Fabricated Metal Products • Metallic Ores • Machinery • Nonmetallic Minerals • Electrical Equipment • Ordnance or Accessories Distribution • Clay, concrete, glass, or stone • Secondary Traffic • Primary Metal Products • Machinery • Waste or Scrap Materials

OPEN DISCUSSION

Which supply chain has the biggest transportation concerns?

What are those concerns? • Facilities • Equipment availability • Service availability • Reliability/ Transit time • Infrastructure condition • Cost Industry Forum Discussion #2: Industry Trends Post-COVID Joe Bryan & Elisha Wulff Industry Trends: Orientation COVID-19 is accelerating a number of pre-existing trends.

Examples include: ‒ Faster penetration by e-commerce, affecting retailers & manufacturers, cities & rural areas ‒ More diversification of production & sourcing locations, already affected by tariffs & country risk concerns ‒ More telecommuting, affecting travel demand, real estate markets, and commercial vs. home-style products U.S. Supply Chain Location Shifts National survey conducted July-August 2020

Likely/ Very Likely

76%

41%

54%

51%

72%

90%

44% Source: MDOT MM2045

No responses submitted. Industry Forum Discussion #3: Issues in International Trade Joe Gurskis & Sara Moore

Up Next: WRAP-UP & NEXT STEPS MM2045 Next Steps

Complete Virtual Freight Forums ‒ Southeast Michigan (7/22) ‒ Upper Peninsula/Northern Michigan (9/2) ‒ West/Southwest Michigan (9/10) ‒ Thumb/Central Michigan (today) ‒ Wrapping up today Continue parallel efforts in stakeholder engagement ‒ One-on-one interviews with industry players ‒ National supply chain outlook survey issued earlier in July ‒ Complete in October Incorporate findings into the MM2045 Plan ‒ Performance assessment, trends, system needs, etc. website: www.MichiganMobility.org

email: [email protected]