NORTHWEST REGIONAL LOGISTICS COUNCIL ADVANCING NORTHWEST INDIANA’S LOGISTICS AS THE GATEWAY TO THE WORLD SEPTEMBER 2015 Conexus Indiana is the state’s advanced manufacturing and logistics initiative, dedicated to making Indiana a global leader in these high-growth, high-tech industries. The mission of CILC is to work with a sense of urgency to strengthen the logistics sector in Indiana by identifying and acting on concrete opportunities for enhancement, which better positions the State to grow existing business, attract new business, and thereby create new jobs. CONEXUS INDIANA NORTHWEST REGIONAL LOGISTICS COUNCIL CHAIR Greg Dougherty Tony Kazakevicius Kevin Lhotak Director of Marketing & Sales Asst. Dir., Business Development President Chicago South Shore & Indiana Harbor Belt Co. Reliable Transportation Specialists South Bend Railroad Hammond Chesterton Michigan City Shawn Kelly Sandy Alvarez George Douglas Project Manager Region 1 Business Consultant General Manager Falk PLI Engineering & Surveying Center for Workforce Innovations Indiana Beverage Portage Valparaiso LaPorte Kyle Kuebler Don Babcock Heather Ennis Airport Director Director, Economic Development President & CEO Porter County Regional Airport NIPSCO Northwest Indiana Forum Valparaiso Merrillville Portage Brian LaRue Gary Cardenas Burt Etchinson GM, Burns Harbor President & CEO President Federal Marine Terminals TOC Logistics International, LLC Stewart Grain Portage Chicago, IL Williamsport Mirko Marich Joe Coar Brent Halfwassen President Vice President, Operations President Contract Services Group Tonn and Blank Construction Halfwassen & Associates, LLC Hammond Michigan City Milwaukee, WI Frank Marshall Tom Condon Susan Hannon President & CEO Senior VP, Chicago Food Traffic Manager G.E. Marshall, Inc. Advisory Group Sullair Corporation Valparaiso Colliers International Michigan City Chicago, IL Leslee McGowan Rick Heimann President Kendell Culp Port Director Young Brothers Trucking Owner Ports of Indiana – Burns Harbor Valparaiso Culp Family Farms Portage (Workforce Development, Chair) Rensselaer Ray Johnsen Kenneth Paulan Manager, Logistics Planning & Scheduling President Arcelor Mittal Steel Transport East Chicago Gary I Roy Roelke Jennifer Smith Kevin Tobin Associate Broker Advisor, Public Affairs President Global Logistics Newmark for US Projects and Operations Tobin Development Corporation Grubb Cressy & Everett Enbridge Chicago, IL Mishawaka Schererville (Infrastructure, Chair) Lori Tubbs Howard Strasburger President Tom Schilli Vice President Commercial Advantage, Inc. CEO Strasburger Trucking, Inc. Merrillville Schilli Transportation Services, Inc. Earl Park (Public Awarness/Policy, Chair) Remington John Talbot Gene Yarkie Jon Schwab Civil Manager Vice President, Operations Indiana President Weaver Boos Consultants Rieth-Riley Construction Co., Inc. Presidio Group, LLC Chicago, IL Goshen Remington * Conexus Indiana Logistics Council Member II III LETTER FROM CONEXUS NORTHWEST REGIONAL LOGISTICS COUNCIL CHAIR Advancing Northwest Indiana’s Logistics as the Gateway to the World was created by leading members of the logistics users community throughout Northwest Indiana to identify strategies and tactics for transportation solutions in the region. The Conexus Indiana Logistics Council (CILC) partnered with the Northwest Indiana Forum, regional economic groups and chambers of commerce in Northwest Indiana to create the Northwest Regional Logistics Council (NWRLC) as a forum for logistics executives to discuss and address issues affecting their industry. Working from a common agenda across all logistics sectors – air, rail, truck and waterborne, and manufacturing, service providers and warehouse/ distribution companies – 32 executives came together and achieved alignment of priorities in infrastructure, public policy and workforce development issues to maximize short- and long-term success for the business community and citizens of Northwest Indiana. The volunteer members of the NWRLC were in unanimous agreement on the issues and priorities necessary to sustain and grow the logistics industry and the economic health of Northwest Indiana. Advancing Northwest Indiana’s Logistics as the Gateway to the World is the result of that collaboration, and the industry is proud to claim ownership of this strategic plan. It is the first-ever map of the region’s logistics and infrastructure assets, and identifies the tactics required to encourage existing companies to grow their businesses, to develop a more attractive business climate for companies to expand or re-locate in the region, and to create high-paying jobs and upward mobility for Hoosiers in Northwest Indiana. If the strategies, goals and tactics developed in this plan are implemented by the private and public sectors, we believe that the Northwest Region will continue to grow its reputation for logistics and ensure our future success. The countless hours dedicated to this project by the executives serving on the NWRLC provide the Conexus Indiana Logistics Council, the Indiana Department of Transportation (INDOT), the Ports of Indiana, and the Indiana Economic Development Corporation, with a strong foundation to make the goals outlined in this plan a reality. Working with the talented staff at Conexus Indiana, regional and local economic groups and chambers of commerce will carry out these initiatives and will drive the implementation of the tactics necessary to ensure the plan’s success. We look forward to continuing the conversations on opportunities for the logistics sector in the Northwest Region. We have designed this plan to be a living, breathing document, updated regularly to continue creating innovation, engagement, and vision ensuring economic results and impact for our region. Respectfully, Kevin Lhotak President, Reliable Transportation Specialists Chair, Northwest Regional Logistics Council IV TABLE OF CONTENTS EXECUTIVE SUMMARY .....................................................................................1 PROBLEM STATEMENT ..............................................................................................1 MISSION STATEMENT .............................................................................................1 OBJECTIVES ............................................................................................................2 LOGISTICS STRATEGIES ....................................................................................3 INFRASTRUCTURE GOALS .........................................................................................3 PUBLIC POLICY GOALS .............................................................................................4 PUBLIC AWARENESS GOALS .....................................................................................4 WORKFORCE DEVELOPMENT GOALS ........................................................................4 IMPLEMENTATION TACTICS ............................................................................5 INFRASTRUCTURE .....................................................................................................5 Regional Tactics .....................................................................................................5 Local Tactics ..........................................................................................................9 PUBLIC POLICY ......................................................................................................33 PUBLIC AWARENESS ..............................................................................................33 WORKFORCE DEVELOPMENT .................................................................................34 LOGISTICS MARKET ANALYSIS ....................................................................35 TRANSPORTATION MODE SWOT ANALYSIS .............................................................35 PUBLIC POLICY SWOT ANALYSIS .............................................................................39 WORKFORCE DEVELOPMENT SWOT ANALYSIS ........................................................43 PUBLIC AWARENESS SWOT ANALYSIS .....................................................................44 NORTHWEST REGION INFRASTRUCTURE DATA .........................................................45 V EXECUTIVE SUMMARY: NORTHWEST REGIONAL LOGISTICS COUNCIL The Conexus Indiana Northwest Regional Logistics Council (NWRLC) is a forum of 32 logistics executives and thought leaders from throughout Northwest Indiana representing the following logistics sectors: air, infrastructure, rail, trucking, warehousing/distribution, waterborne, advanced manufacturing and services firms. Logistics users are manufacturers, distributors/warehousing, and third-party providers. NWRLC is working to: ◆◆ Enhance the environment for companies in advanced manufacturing and logistics to grow their business, taking advantage of Indiana’s position at the heart of the global supply chain; ◆◆ Create a more attractive environment for manufacturing and logistics companies to relocate to or expand in the Northwest Region, thereby creating jobs and increasing State and local revenue; and ◆◆ Create high-paying jobs for Hoosiers – the average wage of Indiana manufacturing and logistics jobs is more than 33% higher than the State’s median income. PROBLEM STATEMENT The Northwest Region’s transportation network has opportunities for improvement due to transportation “bottlenecks”; lack of direct rail service; underutilized air facilities with little international freight