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The Tennessee Transportation & Logistics THE TENNESSEE TRANSPORTATION & LOGISTICS SECTOR Published October 2014 Prepared by: 2 THE TENNESSEE TRANSPORTATION & LOGISTICS SECTOR OVERVIEW With major interstate highways, service from six of the largest U.S. railroads, one of the world’s largest air cargo hubs and its western border hugging the Mississippi River, Tennessee has the means to move goods quickly and efficiently to anywhere on the globe. The state’s sophisticated and integrated transportation system ranks as one of the best in the nation. Area Development rated Tennessee No. 1 for Overall Infrastructure and Global Access, and No. 1 for Distribution/ Supply Chain Hubs on its 2014 Top States for Doing Business. Business Facilities rated the state No. 2 for Best • A central location on the nation’s INDUSTRY GROWTH Infrastructure on its 2014 Rankings inland waterway system. Tennessee has Tennessee’s significant Report, and CNBC ranked it No. 4 for 165 miles of Mississippi River-front transportation assets and strategic Best Infrastructure on its America’s property and has 1,046 miles of geographic position to major U.S. Top States for Business in 2014. navigable waterways in total. Tennessee markets have built an active and The state’s logistics and waterways moved 34.4 million tons of growing logistics industry in the state, transportation advantages include: cargo in 2012 (mostly coal, aggregates The transportation, distribution and • Six commercial service airports and grains), with a combined value of logistics cluster employs 254,509 and 74 general aviation facilities. almost $8.1 billion. people across 16,417 establishments, Memphis International Airport and employment is projected to grow handled more than 4.6 million FEDEX WORLD HUB by 12 percent over the next 10 years. passengers and Nashville International The state ranks No. 1 in the An anchor of Tennessee’s logistics Airport a record 10.6 million southeast and sixth in the nation for system is the FedEx World Hub based passengers in the 2014 fiscal year. The truck transportation employment, and at Memphis International Airport, the Nashville airport was named the No. 10 in the nation for employment in second-busiest cargo airport in the fourth-fastest growing airport in the the warehousing and storage industry. world behind only Hong Kong. U.S. by Business Facilities in 2014. The logistics network and prime The hub’s presence has made location have helped attract numerous • More than 1,100 miles of interstate Memphis International the only distribution operations to the state highways. The 95,523-mile highway airport in North America considered from companies including network in Tennessee includes access to be an “aerotropolis,” an airport- Amazon.com, Nike and Macy’s. to eight primary and seven auxiliary integrated region extending outward In addition to FedEx, Tennessee is interstate routes. from the airport in strings and clusters also home to Chattanooga-based • Rail service from six of the nation’s of airport-linked businesses and their U.S. Xpress, the nation’s second-largest seven Class I carriers operating on associate residential complexes. privately owned truckload carrier, with 2,177 miles of track, and 18 shortline FedEx’s World Hub, which covers 6,000 trucks and 19,000 trailers. Other railroads operating on 842 miles of 862 acres, is the largest sorting major transportation and logistics track. Memphis is the third-largest rail facility in the world, handling companies headquartered in the state center in the U.S., behind Chicago and between 1.3 million and 1.5 million include Averitt Express in Cookeville, St. Louis, and one of only four U.S. packages every night over 42 miles of Ozburn-Hessey Logistics in Brentwood cities served by five or more long-haul conveyor belts. The facility, where and Covenant Transport in Class I rail systems. In recent years, five 3,500 people work by day and 7,000 Chattanooga. Knoxville is the Class I carriers in Memphis have made work by night, includes 196 aircraft headquarters for Pilot Travel Centers, more than $500 million in investments gates, where 140 FedEx aircraft arrive the largest chain of retail travel centers in new or expanded rail systems. each evening. and travel plazas in the nation. 1 THE TENNESSEE TRANSPORTATION & LOGISTICS SECTOR HIGHWAY FACTS 8 19,985 6 Access to eight Number of bridges. Interstate legs that primary interstates ON THE ROAD Tennessee has the cross in Nashville, one of only four U.S. cities most bridges in the where six interstate southeast and 10th 7 legs (I-65 North and Access to seven most in the nation. South, I-40 East and 1 auxiliary interstates Tennessee’s rank in the southeast for West, and I-24 East truck transportation employment and West) converge (No. 6 among all states) 6 within a city’s 1,104 Tennessee’s rank in boundaries Interstate miles the U.S. for cargo Sources: Tennessee 1 carried by trucks Department of Transportation; Tennessee’s rank in the southeast for Bureau of Transportation employment in the couriers and 95,523 Statistics, RITA and Federal messengers sector (No. 3 among Highway miles Highway Administration all states) 10 I-40 FACTS Tennessee’s rank among all states for employment in the warehousing and There are 455 miles of I-40 within Tennessee’s borders, more than any storage industry other state. I-40 travels through 20 Tennessee counties, and is consistently Source: U.S. Bureau of Labor Statistics recognized as the best maintained interstate section in the nation. I-40 has a total of 2,554.22 miles across the U.S. in eight states. Source: TDOT TENNESSEE’S TRANSPORTATION, DISTRIBUTION & LOGISTICS CLUSTER Industry NAICS Code Employment (2014) Projected Growth (2014-2024) Wholesale Trade 42 124,840 10% Scheduled Freight Air Transportation 481112 50 216% Coastal and Great Lakes Transportation 483113 49 22% Inland Water Freight Transportation 483211 2,150 19% Truck Transportation 484 57,332 12% Support Activities for Transportation 488 11,194 19% Couriers and Messengers 492 35,033 1% Warehousing and Storage 493 22,280 31% Process, Physical Distribution, and Logistics Consulting Services 541614 1,581 52% Total 254,509 12% Source: EMSI 2 THE TENNESSEE TRANSPORTATION & LOGISTICS SECTOR TRANSPORTATION AND MATERIAL MOVING OCCUPATIONS IN THE SOUTHEAST Tennessee ranks No. 1 in the southeast for employment per 1,000 jobs (No. 2 nationally) 8 11 Total employment/Employment per 1,000 jobs 3 9 1. Tennessee: 253,860/94.02 7. Alabama: 139,780/75.80 1 2. Arkansas: 105,120/91.20 8. West Virginia: 53,720/75.72 2 10 4 7 5 3. Kentucky: 160,990/90.30 9. North Carolina: 281,270/71.26 6 4. Mississippi: 87,520/80.77 10. South Carolina: 125,070/68.49 5. Georgia: 311,460/80.28 11. Virginia: 216,320/59.57 12 6. Louisiana: 149,500/79.30 12. Florida: 444,900/56.69 Source: U.S. Bureau of Labor Statistics RAIL FACTS 6 Number of Class I railroads (out of seven in the U.S.) that operate in Tennessee (BNSF, Canadian National/Illinois Central Railroad, CSX Transportation, Kansas City Southern, Norfolk Southern and Union Pacific) 2,177 INFRASTRUCTURE AND LOGISTICS LEADER Total number of Class I rail miles in Tennessee TOP STATES FOR DOING AMERICA’S TOP BUSINESS (2014) STATES FOR BUSINESS (2014) AREA DEVELOPMENT CNBC 18 No. 1: Overall Infrastructure No. 4: Best Infrastructure Shortline railroads in Tennessee & Global Access combining to measure 842 miles STATE RANKINGS No. 1: Distribution/Supply REPORT (2014) 3 Chain Hubs BUSINESS FACILITIES Rank of Memphis as a rail center, trailing No. 1: Logistics Leaders – No. 1: Certified Sites/Shovel only Chicago and St. Louis. Memphis is Air Cargo Hubs (Memphis) Ready Programs one of only four U.S. cities served by five or more of the nation’s seven long-haul No. 2: Best Infrastructure Class I rail systems (Norfolk Southern, No. 2: Competitive Utility Rates BNSF, Union Pacific/Southern Pacific, No. 4: Best Business Climate CSX and Canadian National) No. 5: Rail & Highway Accessibility for Economic Source: Tennessee Department of Transportation State of the Year www.tdot.state.tn.us Development (January 2014) 3 THE TENNESSEE TRANSPORTATION & LOGISTICS SECTOR SMART MOVES Tennessee is a logistics leader in the classroom. Since 2010, there have been 1,126 completions in the program of Logistics, Materials and Supply Chain Management at higher education institutions statewide, ranging from post- secondary certificates to bachelor’s degrees. The University of Tennessee-Knoxville’s Supply Chain/Logistics Program has been recognized as: • The No. 1 college in the southeast and No. 6 in the nation for supply chain/logistics by U.S. News and World Report (2014) • The No. 1 graduate school in the southeast and No. 11 in the nation for supply chain management by U.S. News and World Report (2015) • No. 8 globally by the 2014 SCM World Top 25 Survey Sources: U.S. News and World Report; SCM World; EMSI TOP INDUSTRIES BY LOCATION QUOTIENT* Industry NAICS Code Employment(2014) Location Quotient*(2014) Inland Water Freight Transportation 483211 2,150 4.87 Footwear Merchant Wholesalers 424340 1,971 4.31 Specialized Freight (except Used Goods) Trucking, Long-Distance 484230 9,870 3.81 General Freight Trucking, Long-Distance, Truckload 484121 29,328 2.98 Tire and Tube Merchant Wholesalers 423130 1,336 2.65 General Freight Trucking, Long-Distance, Less Than Truckload 484122 11,437 2.54 Other Warehousing and Storage 493190 2,025 2.21 Other Farm Product Raw Material Merchant Wholesalers 424590 339 2.14 Packing and Crating 488991 766 2.13 Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers 423450 7,476 1.92 * Location quotient (LQ): Ratio of proportion of an area’s employment in an industry to that of the nation as a whole.
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