Logistics Overview for North Carolina

June 2, 2016

Charles HW Edwards

Transportation

Outline

• Evolving Freight Logistics Network

• Why Logistics Is Important

• We Now Know Who We Are – North Carolina’s Supply Chain

• New Challenges Everyday

•Role of NC Department of Transportation

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Transportation

Evolving Freight Logistics Network

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New Interstates

Widened

turning basin

Intermodal Hub

Transportation

Why Logistics Is Important

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Each North Carolinian generates / consumes 20 tons of freight per year

* 1 tractor-trailer (TL) load per resident per year = 9+ million TL per year

• Can’t continue to expand and build roads

• Need to meet different requirements in different

regions

• Optimize existing transport network and services

Transportation

Logistics Flows

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Seller Transport Terminal Customs Customs Terminal Transport Consignee

Risks

Costs

Port /

Airport /

Truck

Terminal /

Rail

Terminal

Port /

Airport /

Truck

Terminal /

Rail

Terminal

Clearing Agent / Freight ForwarderFreight Forwarder

Insurance Agents / Banks Banks

Information

Financial

Transportation

We Now Know What We Are

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• Published February 2016

• Prepared by Supply Chain

Resources Cooperative – NC State• MHI / NC Center for Global Logistics

• Quantify the economic impact of the

supply chain

• Identify key connections, trends &

context

• Provide perspective for planning,

investment & policy

http://www.mhlroadmap.org/downloads/NCSupplyChainIndustry.pdf

Transportation

Summary Findings

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• One of every 4 employed

• Present in every county

• Traditional industries important

• Average annual labor income: $67,780- 156% of NC average annual wage of

$43,280

- 52% more than US average annual wage of $44,888

• Total paid state taxes equal about 58%from all sources (2013)

A gauge for economic impact

Transportation

Key Findings

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+IMPACT represents Indirect & Induced totals. All figures represent

2013 IMPLAN data

Transportation

Defining the Supply Chain

• 14 North Carolina Industrial Sectors

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Listed in order of Value Added (GDP Contribution)

Transportation

NC’s Supply Chain Leading Sectors

Rank Employment GDP Contribution State Taxes Paid

1 Transportation,

Distribution and

Logistics

Pharmaceuticals, Biologics

and Medical Products

Tobacco & Foodstuffs

2 Industrial Machinery

and Transportation

Equipment

Chemical Manufacturing Transportation, Distribution

and Logistics

3 Textiles Industrial Machinery and

Transportation Equipment

Industrial Machinery and

Transportation Equipment

4 Chemical

Manufacturing

Tobacco & Foodstuffs Pharmaceuticals, Biologics

and Medical Products

5 Household Goods

and Furniture

Transportation, Distribution

and Logistics

Chemical Manufacturing

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Transportation

NC’s Supply Chain Leading Sectors

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• Transportation, Distribution & Logistics:

- 105K+ workers - more than 2.5% of the state’s total workforce

- Nearly $5.7B in Labor Income

• Pharmaceutical, Biologics & Medical Products:

- GDP contribution of more than $19.4B

• Industrial Machinery & Transportation Equipment:

- Direct Output of nearly $38.4B

• Tobacco & Foodstuffs:- $5.1B paid in state & local Tax

Transportation

New Challenges Everyday

• General

• New economic paradigm

• Anti-globalization sentiment

• Circular economy and logistics

• Specific

• e-Commerce

• Internet of Things

• Modal shift and selection

• Truck driver shortage – FMCSA / HOS rules

• Class 1 railroads’ new focus / strategy

• Chief supply chain manager

• Disruptions and delays

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Transportation

Role of NC Department of Transportation

• Focus – what does it really take to move freight?

• Optimized Infrastructure – Meet needs of freight flows

• ‘The’ key economic development factor

• Shift freight to rail

• Urban and rural freight corridors / Blue shield

• Intersection geometry for trucks

• Multi-state perspective

• Truck driver rest areas

• Flexible Infrastructure – Accommodate and employ new technologies

• Autonomous vehicles

• Internet of Things

• Public transit for last mile pick-up / delivery operations

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Transportation

We plan for freight flows that never stop!

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