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Logistics Park Calumet Business Development Study

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Logistics Park Calumet Business Development Study Logistics Park Calumet Business Development Study November 2012 Prepared for: South Suburban Mayors and Managers Association Logistics Park Calumet Business Development Study i | TranSystems Logistics Park Calumet Business Development Study DISCLAIMER NOTICE This document is disseminated under the sponsorship of the United States Department of Transportation (USDOT) and the Illinois Department of Transportation (IDOT) in the interest of information exchange. The United States Government and the Illinois Department of Transportation assume no liability for its contents or use thereof. The United States Government and the Illinois Department of Transportation do not endorse manufacturers’ products. Trademarks or manufacturers’ names appear in the document only because they are essential to this report’s objectives. This report’s contents reflect the views of the authors, who are responsible for the facts and the accuracy of the data presented herein. The contents do not necessarily reflect the official views or policies of the USDOT or IDOT. ii | TranSystems Logistics Park Calumet Business Development Study Table of Contents 1 EXECUTIVE SUMMARY .......................................................................................................................................... 1 1.1 LOGISTICS PARK CALUMET ......................................................................................................................................... 1 1.2 INTERVIEW SURVEY AND IMPLICATIONS FOR LOGISTICS PARK CALUMET .............................................................................. 4 1.3 FREIGHT MARKET ANALYSIS AND OPPORTUNITIES FOR LOGISTICS PARK CALUMET ................................................................ 5 1.4 STRATEGIC ACTION PLAN ........................................................................................................................................... 8 1.4.1 Marketing ....................................................................................................................................................... 8 1.4.2 Sites and Site Information ............................................................................................................................... 8 1.4.3 Infrastructure Development.......................................................................................................................... 10 1.4.4 Infrastructure for International Trade .......................................................................................................... 11 1.4.5 Development Programs and Incentives ........................................................................................................ 12 1.4.6 Funding Strategies ........................................................................................................................................ 12 1.4.7 Workforce Development ............................................................................................................................... 13 2 REVIEW OF LOGISTICS PARK CALUMET ............................................................................................................... 14 2.1 LOGISTICS PARK CALUMET AREA ............................................................................................................................... 14 2.1.1 Logistics Park Calumet North ........................................................................................................................ 16 2.1.2 Logistics Park Calumet South ........................................................................................................................ 18 2.2 REVIEW OF INDUSTRIAL LOCATION FACTORS ............................................................................................................... 18 2.3 LOGISTICS PARK CALUMET STRENGTHS ....................................................................................................................... 22 2.4 LOGISTICS PARK CALUMET WEAKNESSES .................................................................................................................... 23 3 COMPETITVE INDUSTRIAL DEVELOPMENT SITES IN NORTHERN ILLINOIS ........................................................... 25 3.1 CHICAGO INDUSTRIAL MARKET ................................................................................................................................. 25 3.2 I-55 CORRIDOR ..................................................................................................................................................... 27 3.3 O’HARE INDUSTRIAL SUBMARKET ............................................................................................................................. 29 3.4 I-80/JOLIET SUBMARKET ......................................................................................................................................... 29 3.5 I-88 CORRIDOR/AURORA ........................................................................................................................................ 29 3.6 SOUTH COOK SUBMARKET ....................................................................................................................................... 30 3.7 CHICAGO HEIGHTS ................................................................................................................................................. 30 3.8 THE SOUTH SUBURBS ............................................................................................................................................. 30 3.9 ALSIP ................................................................................................................................................................... 31 3.10 TINLEY PARK ......................................................................................................................................................... 31 3.11 UNIVERSITY PARK................................................................................................................................................... 31 3.12 SAUK VILLAGE ....................................................................................................................................................... 32 3.13 PARK 88 .............................................................................................................................................................. 32 3.14 MINOOKA, ILLINOIS ................................................................................................................................................ 32 3.15 INTERMODAL LOGISTICS PARKS AND TERMINALS .......................................................................................................... 33 4 INDUSTRIAL USER INTERVIEWS .......................................................................................................................... 35 4.1 SUMMARY OF FINDINGS .......................................................................................................................................... 35 4.2 APPROACH ........................................................................................................................................................... 35 4.3 CARGO NETWORKS AND PORT GATEWAYS .................................................................................................................. 36 4.3.1 North American Gateways and Prince Rupert’s Share ................................................................................. 36 4.3.2 Prince Rupert Ocean Carriers ........................................................................................................................ 37 4.3.3 Prince Rupert Pricing..................................................................................................................................... 37 4.3.4 Port Diversification ....................................................................................................................................... 38 4.3.5 Halifax Gateway ........................................................................................................................................... 38 iii | TranSystems Logistics Park Calumet Business Development Study 4.4 INLAND TRANSPORTATION STRATEGY ......................................................................................................................... 39 4.5 RAIL .................................................................................................................................................................... 40 4.6 DISTRIBUTION CENTER LOCATION.............................................................................................................................. 40 4.7 EXPORT MANUFACTURING ....................................................................................................................................... 41 4.8 OTHER FACTORS INFLUENCING LOGISTICS HUBS IN CHICAGO .......................................................................................... 41 4.8.1 Labor ............................................................................................................................................................. 41 4.8.2 Land .............................................................................................................................................................. 42 4.8.3 Incentives .....................................................................................................................................................
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