Memphis Freight Infrastructure Plan Prepared For: Greater Memphis Chamber October 19,2009 Report Title Here Contact Information Joseph Waldo Senior Consultant 610-490-2636 [email protected] Table of Contents INTRODUCTION AND EXECUTIVE SUMMARY...............................................................................................5 CHAPTER 1: MEMPHIS IN THE GLOBAL SUPPLY CHAIN..............................................................................................7 CHAPTER 2: MEMPHIS FREIGHT INFRASTRUCTURE INVENTORY.................................................................................9 CHAPTER 3: MEMPHIS FREIGHT INFRASTRUCTURE EVALUATION.............................................................................10 CHAPTER 4: MEMPHIS FREIGHT INFRASTRUCTURE RECOMMENDATIONS.................................................................11 FUTURE DEVELOPMENTS..........................................................................................................................................12 MEMPHIS INFRASTRUCTURE PLAN RECOMMENDATIONS BY STATE.........................................................................14 STAKEHOLDER INTERVIEWS FOR THE MEMPHIS INFRASTRUCTURE PLAN ................................................................15 MEMPHIS IN THE GLOBAL SUPPLY CHAIN ..................................................................................................16 THE GLOBAL ECONOMIC PICTURE ...........................................................................................................................16 The World Economic Outlook .............................................................................................................................16 Regional Economic Outlook................................................................................................................................17 Container Trade and World GDP .......................................................................................................................19 United States Container Trade Outlook ..............................................................................................................20 INTERNATIONAL LAND AND WATER TRADE FLOWS IN MEMPHIS ............................................................................27 Overview of Memphis International Land and Water Freight flows ...................................................................27 Memphis International Land and Water Imports ................................................................................................31 Memphis International Land and Water Exports ................................................................................................34 Memphis International Land and Water Freight Compared with Other regions ................................................39 Summary..............................................................................................................................................................39 EMERGING TRENDS IN INTERNATIONAL TRADE .......................................................................................................40 Changing Containership Fleet and Panama Canal Expansion...........................................................................40 Suez Canal...........................................................................................................................................................46 Shorter Supply Chains.........................................................................................................................................47 Increased Use in Rail...........................................................................................................................................47 Multi-Modalism ...................................................................................................................................................50 Declining Air Freight Shipments .........................................................................................................................51 Summary: Changing Inland Hub Competition ....................................................................................................53 MEMPHIS FREIGHT INFRASTRUCTURE INVENTORY...............................................................................57 MEMPHIS HIGHWAY INFRASTRUCTURE INVENTORY.................................................................................................59 MEMPHIS AIRPORT INFRASTRUCTURE INVENTORY...................................................................................................65 MEMPHIS RAILROAD INFRASTRUCTURE INVENTORY ................................................................................................68 MEMPHIS PORT INFRASTRUCTURE INVENTORY ........................................................................................................78 MEMPHIS PIPELINE INFRASTRUCTURE INVENTORY...................................................................................................84 MEMPHIS INTERMODAL INFRASTRUCTURE INVENTORY............................................................................................86 MEMPHIS TRUCKING AND DRAYAGE INFRASTRUCTURE INVENTORY.........................................................................89 MEMPHIS WAREHOUSE AND DISTRIBUTION INFRASTRUCTURE INVENTORY .............................................................92 MEMPHIS INDUSTRIAL PARKS INFRASTRUCTURE INVENTORY...................................................................................94 EVALUATION OF MEMPHIS FREIGHT INFRASTRUCTURE......................................................................96 MEMPHIS HIGHWAY INFRASTRUCTURE EVALUATION ..............................................................................................96 Highway Freight Flows in the Memphis Region Overview .................................................................................96 Highway Congestion Bottlenecks in the Memphis Region.................................................................................115 3 Memphis Freight Infrastructure Plan Memphis Connectivity Analysis.........................................................................................................................117 MEMPHIS AIR CARGO INFRASTRUCTURE EVALUATION..........................................................................................119 Air Cargo Industry Overview ............................................................................................................................119 Memphis Region Airport Benchmarking Analysis.............................................................................................125 Air Cargo Industry Forecast and Trends ..........................................................................................................136 MEMPHIS RAIL INFRASTRUCTURE EVALUATION ....................................................................................................140 Memphis Rail Infrastructure – Track Capacity .................................................................................................141 Memphis Rail Infrastructure – Terminal Capacity............................................................................................142 Memphis Class I Rail Infrastructure .................................................................................................................146 MEMPHIS WATER INFRASTRUCTURE EVALUATION ................................................................................................152 SUMMARY OF MODE INFRASTRUCTURE CAPACITY AND OBJECTIVES ....................................................................153 INFRASTRUCTURE RECOMMENDATIONS ..................................................................................................156 INFRASTRUCTURE RECOMMENDATIONS – TENNESSEE ...........................................................................................159 INFRASTRUCTURE RECOMMENDATIONS – MISSISSIPPI ...........................................................................................165 INFRASTRUCTURE RECOMMENDATIONS – ARKANSAS............................................................................................166 KEY INFRASTRUCTURE RECOMMENDATIONS .........................................................................................................167 FUTURE DEVELOPMENTS........................................................................................................................................180 APPENDIX I: WORLD TRADE SERVICE FORECASTING METHODOLOGY.........................................184 APPENDIX II: U.S. INTERNATIONAL TRADE MONITOR .........................................................................195 APPENDIX III: ACCESSING THE UNIVERSITY OF MEMPHIS INTERMODAL FREIGHT TRANSPORTATION INSTITUTE FTP SITE ....................................................................................................197 APPENDIX IV: STAKEHOLDER INTERVIEWS AS PART OF THE MEMPHIS INFRASTRUCTURE PLAN ........................................................................................................................................................................201 APPENDIX V PORT TERMINALS BY COUNTY IN THE MEMPHIS STUDY AREA...............................202 APPENDIX VI: TRANSIT TIMES BETWEEN MEMPHIS AND MAJOR U.S. AND CANADIAN PORTS ...................................................................................................................................................................................205