Freight Workshop & Industry Forum

Upper Peninsula & Northern Michigan General Session: 9-10:30 am Industry Forum: 10:30-11:30 am

WELCOME

Todd White MDOT Planning Director 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 MM2045 Overview Brad Sharlow 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 Northern 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: steel plant Sault Ste Marie . Iron ore: intra-county

Wayne County . Half of all Michigan-originated freight . Finished vehicles: Port of Baltimore, other U.S. locations . Metals: Ohio, Indiana . Intermodal: New Jersey, Virginia Geographic Distribution of Rail Tonnage: Terminations

Marquette County . Iron ore: intra-county Wayne County . Chemicals . Coal & Coke Ottawa County . Coal Monroe County . Coal Metallic Ores Network

• Principally Upper Peninsula originations • Intrastate to Presque Isle Ore Dock • Export to Sault Ste. Marie Forest Products Network

• Inbound logs: Northern Ontario to Dickinson County • Outbound logs: Dickinson County to Wisconsin • Outbound printing paper: Delta/Dickinson Counties to Illinois and Wisconsin • Outbound woodpulp: Dickinson County

Topical Discussion #3: Marine & Air Performance

Joe Bryan & Elisha Wulff

No responses received. Air Cargo Tonnage No responses received.

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

Topical Discussion #5: Economic Growth & Development

Joe Gurskis & Nikkie Johnson Upper Peninsula/Northern MI Economy

Principal products include: • Iron ore • Logs & Lumber • Pulp • Paper products • Limestone • Cement • Agriculture

Up Next: INDUSTRY FORUM We will begin at 10:30 AGENDA

PART 2: Industry Forum (10:30-11:30 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

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 Northern Michigan Supply Chains

Metals & Machinery Lumber & Forestry • Metallic Ore • Forest Products • Nonmetallic Minerals • Lumber or Wood Products • Ordnance or Accessories • Pulp, Paper or Allied products • Clay, concrete, glass or stone • Printer matter • Machinery • Primary Metal Products • Waste or scrap • Fabricated Metal Products • Machinery • Waste or Scrap Food & Agriculture • Farm Products • Fresh Fish or Marine Products Construction • Nonmetallic Minerals • Nonmetallic Minerals • Food or Kindred Products • Petroleum or Coal Products • Tobacco Products • Machinery • Chemical or Allied Products • Electrical Equipment • Machinery

OPEN DISCUSSION

What are the biggest transport concerns for this supply chain? • 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

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

email: [email protected]