P a g e | 1 FINAL REPORT P a g e | 2 TABLE OF CONTENTS ACKNOWLEDGMENTS 5 EXECUTIVE SUMMARY 6 CREATION AND PURPOSE OF TASK FORCE 8 HISTORY AND GEOGRAPHY 11 NORTH CAROLINA’S FUTURE 13 TASK FORCE METHODOLOGY 16 TASK FORCE MEETINGS 18 SUBCOMMITTEES 20 SUBCOMMITTEE RECOMMENDATIONS—AUGUST 2011 21 SEVEN PORTALS STUDY 25 NORTH CAROLINA MARITIME STRATEGY 31 STATE TRANSPORTATION ASSET INVENTORY 36 ROADS 37 RAILROADS 40 AVIATION 43 PORTS 46 OTHER TRANSPORTATION MODES 48 NORTH CAROLINA FOREIGN TRADE ZONE PROGRAM 52 MILITARY 54 AGRICULTURE 58 INFORMATION INFRASTRUCTURE 60 P a g e | 3 REPORTS TO THE GOVERNOR AND TASK FORCE RECOMMENDATIONS 62 AUGUST 2010 REPORT TO THE GOVERNOR JANUARY 2011 REPORT TO THE JOINT LEGISLATIVE TRANSPORTATION OVERSIGHT COMMITTEE FEBRUARY 2011 REPORT TO THE GOVERNOR REGIONAL ANALYSIS RESULTS 65 NORTHEAST REGION 66 EASTERN REGION 68 SOUTHEAST REGION 70 RESEARCH TRIANGLE REGION 75 PIEDMONT TRIAD REGION 76 CHARLOTTE REGION 79 ADVANTAGE WEST REGION 82 RECOMMENDATIONS 86 RECOMMENDATION 1: GOVERNANCE 86 1.1 ONE STOP SHOP 1.2 NORTH CAROLINA BOARD OF TRANSPORTATION 1.3 NORTH CAROLINA RAILROAD 1.4 REGIONAL PORTS/VILLAGES RECOMMENDATION 2: COMPETITIVE RAIL ACCESS 91 RECOMMENDATION 3: FOREIGN TRADE ZONES 91 RECOMMENDATION 4: INTERSTATE PARTNERSHIPS 92 RECOMMENDATION 5: MILITARY 92 5.1 NORTH CAROLINA DEFENSE LOGISTICS INITIATIVE 5.2 AIRSPACE PRESERVATION AND PROTECTION 5.3 PRESERVATION OF CORRIDORS IMPORTANT TO MILITARY INSTALLATIONS P a g e | 4 RECOMMENDATION 6: NORTH CAROLINA MARITIME STRATEGY 94 RECOMMENDATION 7: AGRICULTURE 95 RECOMMENDATION 8: INFORMATION INFRASTRUCTURE/BROADBAND 95 SUMMARY AND CONCLUSIONS 96 GLOSSARY OF TERMS AND ACRONYMS 97 APPENDICES 98 APPENDIX I—TASK FORCE MEETING LOCATIONS AND MINUTES 99 APPENDIX II—TASK FORCE SUBCOMMITTEES 161 APPENDIX III—TASK FORCE REPORTS 183 APPENDIX IV—SEVEN PORTALS STUDY 192 APPENDIX V—NORTH CAROLINA MARITIME STRATEGY 193 APPENDIX VI—ADDITIONAL MAPS AND CHARTS 194 P a g e | 5 ACKNOWLEDGEMENTS First and foremost, the Task Force would like to acknowledge and applaud the vision of 2007 North Carolina General Assembly and the Office of State Budget and Management for the creation of the 2008 Statewide Logistics Study. Without the significant analysis completed by that effort and its accompanying recommendations, the Task Force might not have been created. The 2008 study served as a significant driver behind much of the Task Force’s work as well. Secondly, the Task Force would like to thank Governor Beverly Perdue for her vision and direction in the creation of the Task Force. Through her leadership, she allowed the Task Force to complete its work and to devise a structure to assist in moving the state forward through efficient and effective movement of people, goods and information. The Task Force would also like to thank Secretary Gene Conti and the North Carolina Department of Transportation for their assistance in coordinating the operations of the Task Force during its existence. The Task Force would like to especially thank the following NCDOT staff members and contractors for their assistance during this process: Roberto Canales, Seth Palmer, Tammy Denning, Jed McMillan, Charlie Diehl, and Bradford Sneeden. Also, the Task Force would like to thank all of the persons and groups who have taken the time to present to the group, both during its regional outreach sessions, as well as during its working sessions. Without this input, the Task Force’s final work product would not be what it is. In addition, the Task Force would like to thank all of the locations who hosted meetings during the group’s regional outreach efforts. Finally, the Task Force would like to thank all of its members for giving of their time and energy to this effort. Each should be applauded for their willingness to participate in this effort, even with the significant travel which was required during the regional outreach efforts. P a g e | 6 EXECUTIVE SUMMARY The Governor’s Logistics Task Force was created by Executive Order 32 in December 2009. Led by Lieutenant Governor Walter Dalton, the group made up of thirty representatives from the public and private sector worked to understand how to efficiently and effectively move people, goods and information across the state. In order to accomplish their work, the Task Force embarked on a statewide listening tour, visiting each of the state’s seven economic development regions. In all, the Task Force held twenty-four meetings, twelve of which were held outside of Raleigh. The Task Force’s work was guided by the previous 2008 Statewide Logistics Plan which had been developed by the General Assembly in an effort to understand the State’s ―long-term economic, mobility, and infrastructure needs.‖1 The Task Force utilized the study’s framework and conclusions to develop its scope of work, as well as to develop areas for more detailed analysis. Through the Task Force’s work, numerous findings presented themselves. They include: North Carolina possesses numerous transportation and logistics assets, ranging from an extensive road network, to significant maritime and aviation facilities. North Carolina is one of the fastest-growing states in the nation, adding an additional 1.5 million people from 2000 to 2010. The state also lies in the ―Piedmont Atlantic‖ megaregion which is one of the fastest growing areas in the world. The state’s three largest economies, in order of size, are agriculture ($74 billion), tourism and military. The state’s seven economic development regions are each unique in size, population, topography, and primary economic driver. The state has numerous significant transportation infrastructure assets including an extensive, state-maintained highway system; two seaports; numerous airport facilities, including one of the largest runways in the country; numerous inland distribution facilities; and specialty assets such as ferries and the Intracoastal Waterway System. The Task Force structured its work around a regional outreach effort which took them to each of the seven economic development regions. The Task Force heard numerous presentations from a variety of different groups including the regional partnerships, area companies, and other issue area experts regarding topics ranging from Foreign Trade Zones to international trade and agricultural economics. In addition to its outreach efforts, the Task Force also recommended the commissioning of two studies to examine specific topics: inland ports and the future of the state’s maritime infrastructure. The Seven Portals Study and the North Carolina Maritime Strategy were both contracted by the North Carolina Department of Transportation and devised to present specific 1 2008 Statewide Logistics Plan—Executive Summary, pp. 1 P a g e | 7 information. The Seven Portals Study examined the feasibility of locating an inland port facility in each of the seven economic development regions, while the North Carolina Maritime Strategy examined the state’s maritime economy, both current and future, as well as the development needs to support specific products or commodity lines, such as containers, bulk products, and roll-on roll-off equipment. Following its analysis, the Task Force chose to structure its recommendations in the following areas: Recommendation 1: Governance Recommendation 2: Competitive Rail Access Recommendation 3: Foreign Trade Zones Recommendation 4: Interstate Partnerships Recommendation 5: Military Recommendation 6: North Carolina Maritime Strategy Recommendation 7: Agriculture Recommendation 8: Information Infrastructure/Broadband P a g e | 8 CREATION AND PURPOSE OF TASK FORCE The North Carolina Logistics Task Force was created by Governor Beverly Eaves Perdue pursuant to Executive Order 32, issued on December 7, 2009.2 The Task Force was given two years from the signing of the Executive Order to complete its work. On December 5, 2011, Governor Perdue, by way of Executive Order 111 extended the work of the Task Force until March 31, 2012 in order to ensure that the group’s final work product was fully representative of all logistics-related activities currently underway.3 Lieutenant Governor Walter Dalton was appointed by Governor Perdue to Chair the Task Force and thirty (30) members, representing the public sector and private industries, as well as experts in logistics and higher education, were appointed as members. These members include Al Delia, of the Governor’s Office, who served as Vice Chair, as well as Secretaries Conti, Crisco, and Freeman representing the Departments of Transportation, Commerce, and Environment & Natural Resources respectively. Included below is the Task Force’s full membership list. Name Title Lieutenant Governor Walter Dalton—Chair Lieutenant Governor of North Carolina Al Delia—Vice Chair* Senior Advisor to the Governor Secretary Gene Conti NC Department of Transportation Secretary Keith Crisco NC Department of Commerce Secretary Dee Freeman NC Department of Environment and Natural Resources Senator Clark Jenkins North Carolina Senate Senator Michael Walters North Carolina Senate Representative Danny McComas North Carolina House of Representatives Representative Nelson Cole North Carolina House of Representatives Mayor Allen Joines Mayor, City of Winston-Salem Dan Danieley Manager, Burlington-Alamance Regional Airport Patricia Long Vice-Chair, Longistics International Earl Brinkley Director of Global Logistics, John Deere [ret.] Guy Shavender Shavender Trucking Dawn Clegg Arvin-Meritor Dee Blackwell Executive Director, Western Piedmont Council of Governments