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Transportation Logistics and Economics of the Processed Meat and Related Industries in Southwest Kansas

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Transportation Logistics and Economics of the Processed Meat and Related Industries in Southwest Kansas Report No. K-TRAN: KU-06-3 FINAL REPORT TRANSPORTATION LOGISTICS AND ECONOMICS OF THE PROCESSED MEAT AND RELATED INDUSTRIES IN SOUTHWEST KANSAS Yong Bai, Ph.D., P.E. Patricia Oslund Dr. Tom Mulinazzi, Ph.D., P.E. Shyamala Tamara Chunxiao Liu Michael M. Barnaby Christine E. Atkins The University of Kansas July 2007 A CooperatiVE TRANSPORTATION RESEARCH PROGRAM BETWEEN: KANSAS Department OF Transportation KANSAS State UNIVERSITY UNIVERSITY OF KANSAS 1 Report No. 2 Government Accession No. 3 Recipient Catalog No. K-TRAN: KU-06-3 4 Title and Subtitle 5 Report Date Transportation Logistics and Economics of the Processed July 2007 Meat and Related Industries in Southwest Kansas 6 Performing Organization Code 7 Author(s) 8 Performing Organization Report No. Yong Bai, Ph.D., P.E., Patricia Oslund, Tom Mulinazzi, Ph.D., P.E., Shyamala Tamara, Chunxiao Liu, Michael M. Barnaby, Christine E. Atkins 9 Performing Organization Name and Address 10 Work Unit No. (TRAIS) Kansas University Transportation Center The University of Kansas 1530 W 15th Street, 2150 Learned Hall 11 Contract or Grant No. Lawrence, KS 66045-7609 C1569 12 Sponsoring Agency Name and Address 13 Type of Report and Period Covered Kansas Department of Transportation Final Report Bureau of Materials and Research Summer 2003 - January 2007 700 SW Harrison Street 14 Sponsoring Agency Code Topeka, Kansas 66603-3745 RE-0412-01 15 Supplementary Notes For more information write to address in block 9. 16 Abstract Kansas is one of the nation’s leaders in meat production. Specifically, in the southwest Kansas region, there are more than three hundred feed yards and four meat processing plants. Traditionally, processed meat, some of the meat byproducts, grain, and other industry-related products are transported using large trucks (tractor-trailers). In addition to the highway system, there are two Class I railroad carriers and four Class III railroad carriers in the southwest Kansas region. Because there is a rich railroad network in the southwest Kansas region, it is necessary to study whether there is a need to utilize other transportation modes, such as railroad and intermodal, to transport goods and products for the processed meat and related industries. The objectives of this research are to study the transportation modes, their utilizations for the processed meat and related industries in southwest Kansas, and their impacts on local economic development. To achieve the objectives, the research team conducted a literature review, collected data through site visits, interviews, and web-sites, estimated vehicle miles of travel (VMT) by truck using TransCAD software, and projected future growth of processed meat and related industries as well as emerging industry development in the region. The research results demonstrate that there is heavy usage of trucks in the southwest Kansas region which need to be diversified to other transportation modes such as railroad and intermodal. To utilize railroad and intermodal transportation for the processed meat and related industries, there is a need to build required infrastructure near or within the feed yards and meat processing plants to support these transportation modes. In addition, to use the railroad for transporting feed grains, the system infrastructure of short line railroads needs to be improved. During this project, the research team also found that two new industries, dairy and ethanol, are emerging in southwest Kansas. With the development of new businesses, the demand on railroad service (both Class I and Class III) has been increasing recently. Thus, it is important to have adequate investment in railroad infrastructure, particularly, to keep short line railroads running rather than being abandoned. 17 Key Words 18 Distribution Statement processed, railroad, intermodal, industry, No restrictions. This document is economic development available to the public through the National Technical Information Service, Springfield, Virginia 22161 19 Security 20 Security 21 No. of pages 22 Price Classification (of this Classification report) (of this page) Unclassified Unclassified Form DOT F 1700.7 (8-72) TRANSPORTATION LOGISTICS AND ECONOMICS OF THE PROCESSED MEAT AND RELATED INDUSTRIES IN SOUTHWEST KANSAS Final Report Prepared by Yong Bai, Ph.D., P.E., Assistant Professor Patricia Oslund, Research Economist Tom Mulinazzi, Ph.D., P.E., Chair and Professor Shyamala Tamara, Research Assistant Chunxiao Liu, Research Assistant Michael M. Barnaby, Research Assistant Christine E. Atkins, Research Assistant Kansas University Transportation Center The University of Kansas 1530 W. 15th Street, 2150 Learned Hall Lawrence, KS 66045-7609 A Report on Research Sponsored By THE KANSAS DEPARTMENT OF TRANSPORTATION TOPEKA, KANSAS July 2007 © Copyright 2007, Kansas Department of Transportation PREFACE The Kansas Department of Transportation’s (KDOT) Kansas Transportation Research and New-Developments (K-TRAN) Research Program funded this research project. It is an ongoing, cooperative and comprehensive research program addressing transportation needs of the state of Kansas utilizing academic and research resources from KDOT, Kansas State University and the University of Kansas. Transportation professionals in KDOT and the universities jointly develop the projects included in the research program. NOTICE The authors and the state of Kansas do not endorse products or manufacturers. Trade and manufacturers’ names appear herein solely because they are considered essential to the object of this report. This information is available in alternative accessible formats. To obtain an alternative format, contact the Office of Transportation Information, Kansas Department of Transportation, 700 SW Harrison, Topeka, Kansas 66603- 3745 or phone (785) 296-3585 (Voice) (TDD). DISCLAIMER The contents of this report reflect the views of the authors who are responsible for the facts and accuracy of the data presented herein. The contents do not necessarily reflect the views or the policies of the state of Kansas. This report does not constitute a standard, specification or regulation. ii ABSTRACT Kansas is one of the nation’s leaders in meat production. Specifically, in the southwest Kansas region, there are more than three hundred feed yards and four meat processing plants. Traditionally, processed meat, some of the meat byproducts, grain, and other industry related products are transported using large trucks (tractor-trailers). In addition to the highway system, there are two Class I railroad carriers and four Class III railroad carriers in the southwest Kansas region. Because there is a rich railroad network in the southwest Kansas region, it is necessary to study whether there is a need to utilize other transportation modes, such as railroad and intermodal, to transport goods and products for the processed meat and related industries. The objectives of this research are to study the transportation modes, their utilizations for the processed meat and related industries in southwest Kansas, and their impacts on local economic development. To achieve the objectives, the research team conducted a literature review, collected data through site visits, interviews, and websites, estimated vehicle miles of travel (VMT) by truck using TransCAD software, and projected future growth of processed meat and related industries as well as emerging industry development in the region. The research results demonstrate that there is heavy usage of trucks in the southwest Kansas region which need to be diversified to other transportation modes such as railroad and intermodal. To utilize railroad and intermodal transportation for the processed meat and related industries, there is a need to build required infrastructure near or within the feed yards and meat processing plants to support these transportation iii modes. In addition, to use the railroad for transporting feed grains, the system infrastructure of short line railroads needs to be improved. During this project, the research team also found that two new industries, dairy and ethanol, are emerging in southwest Kansas. With the development of new businesses, the demand on railroad service (both Class I and Class III) has been increasing recently. Thus, it is important to have adequate investment in railroad infrastructure, particularly, to keep short line railroads running rather than being abandoned. iv TABLE OF CONTENTS ABSTRACT .....................................................................................................................iii TABLE OF CONTENTS .................................................................................................. v LIST OF TABLES............................................................................................................ x LIST OF FIGURES........................................................................................................xiii Chapter One - Executive Summary................................................................................. 1 1.1 Research Objectives and Scope .......................................................................... 4 1.2 Data Collection ..................................................................................................... 4 1.3 Estimating Truck Vehicle Miles Traveled.............................................................. 6 1.3.1 Truck VMT for Transporting Feeder Cattle to Feed Yards ................................ 6 1.3.2 Truck VMT for Transporting Feed Grain to Feed Yards...................................
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