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Middle Georgia Freight and Logistics Study November, 2015 Prepared for Middle Georgia Regional Commission

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Middle Georgia Freight and Logistics Study November, 2015 Prepared for Middle Georgia Regional Commission Middle Georgia Freight and Logistics Study November, 2015 Prepared for Middle Georgia Regional Commission This study was prepared under contract with the Middle Georgia Regional Commission, with financial support from the Office of Economic Adjustment, Department of Defense. The content reflects the views of the Middle Georgia Regional Commission and does not necessarily reflect the views of the Office of Economic Adjustment. Middle Georgia Freight and Logistics Study Disclaimer Wilson and Company, Inc., along with GKSF Global Research, Inc. (“Report Authors”) have prepared this report for the sole use of the Client. The use of this report by unauthorized third parties without written authorization from the Report Authors shall be at their own risk, and the Report Authors accepts no duty of care to any such third party. Any recommendations, opinions or findings stated in this report are based on circumstances and facts as they existed at the time the Report Authors performed the analysis. Any changes in such circumstances and facts upon which this report is based may adversely affect any recommendations, opinions or findings contained in this report. The Report Authors have exercised due and customary care in preparing this report, but has not, save as specifically stated, independently verified information and data provided by others. No other warranty, express or implied is made in relation to the contents of this report. Therefore, GKSF assumes no liability for any loss resulting from errors, omissions or misrepresentations made by others. ii Middle Georgia Freight and Logistics Study Contents 1 Executive Summary .................................................................................................................. 1 2 Freight Flow Analysis .............................................................................................................. 10 2.1 Freight Flow Study Area ............................................................................................................... 10 2.2 Total Freight ................................................................................................................................. 11 2.3 Truck Freight ................................................................................................................................ 15 2.3.1 Domestic Inbound and Outbound ........................................................................................................... 15 2.3.2 International Inbound and Outbound ..................................................................................................... 18 2.3.3 Through Freight ....................................................................................................................................... 20 2.4 Rail Freight ................................................................................................................................... 23 2.4.1 Domestic Inbound and Outbound ........................................................................................................... 23 2.4.2 International Inbound and Outbound ..................................................................................................... 23 2.4.3 Through Freight ....................................................................................................................................... 25 2.6 Savannah-Middle Georgia Corridor ............................................................................................. 27 2.6.1 Truck Freight ........................................................................................................................................... 27 2.6.2 Rail Freight .............................................................................................................................................. 28 3 Freight Forecast ...................................................................................................................... 31 3.1 Economic Trends ......................................................................................................................... 31 3.1.1 U.S. and Regional Economies .................................................................................................................. 31 3.1.2 International Economies ......................................................................................................................... 33 3.1.3 Middle Georgia Region ............................................................................................................................ 34 3.1.4 Population Trends ................................................................................................................................... 35 3.2 Regional Freight Forecast ............................................................................................................ 36 3.2.1 Summary of Forecasts in Georgia Statewide Freight & Logistics Action Plan.......................................... 36 3.2.2 Outlook for Port of Savannah .................................................................................................................. 38 3.2.3 Intermodal Rail Activity ........................................................................................................................... 40 3.2.4 Middle Georgia Freight Forecast ............................................................................................................. 41 4 Interview Survey ..................................................................................................................... 44 4.1 Middle Georgia Summary ............................................................................................................ 44 4.2 Site Selection Criteria Summary .................................................................................................. 45 4.3 Proximity to Customers and Suppliers (Different for Retail vs. Manufacturers) ......................... 47 4.4 Availability of Transportation Modes .......................................................................................... 47 4.5 Rail ............................................................................................................................................... 48 4.5.1 Intermodal Rail ........................................................................................................................................ 48 4.5.2 Network Georgia ..................................................................................................................................... 49 4.5.3 Norfolk Southern Brosnan Classification Yard ......................................................................................... 51 4.6 Truck ............................................................................................................................................ 51 iii Middle Georgia Freight and Logistics Study 4.7 Parcel Package Shipping Companies............................................................................................ 54 4.8 Air Cargo ...................................................................................................................................... 55 4.9 Labor ............................................................................................................................................ 56 4.10 Utilities and Regulatory Environment .......................................................................................... 57 4.11 Transportation Industry Trends and Gateway Choice ................................................................. 57 4.11.1 Cargo Routing and West Coast Port Disruptions ..................................................................................... 58 4.11.2 Modal Choice and Fuel Prices.................................................................................................................. 59 5 Supply Chain and Distribution Strategies ............................................................................... 60 5.1 General Approach ........................................................................................................................ 60 5.2 Inland Transportation Strategies ................................................................................................. 60 5.3 Retail Distribution Model Example .............................................................................................. 61 5.4 Manufacturing Distribution Model .............................................................................................. 63 5.5 Truck Rate Analysis ...................................................................................................................... 63 5.6 eCommerce Fulfillment Center.................................................................................................... 66 5.7 Foreign Trade Zones .................................................................................................................... 66 6 Competitive Analysis .............................................................................................................. 67 6.1 Competitive Cities Assessment .................................................................................................... 67 6.1.1 Evaluation Criteria ................................................................................................................................... 70 6.1.2 Market Coverage ....................................................................................................................................
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