TDL & Exports Regional Intermediary Design

69
- 1 - Workshop One March 11, 2011 Sponsored by New Economy Initiative Hosted by Detroit Regional Chamber and Michigan State University TDL & Exports Regional Intermediary Design

description

 

Transcript of TDL & Exports Regional Intermediary Design

Page 1: TDL & Exports Regional Intermediary Design

- 1 -

Workshop One

March 11, 2011

Workshop One

March 11, 2011

Sponsored by

New Economy Initiative

Hosted by

Detroit Regional Chamber

and

Michigan State University

TDL & Exports Regional Intermediary Design

Page 2: TDL & Exports Regional Intermediary Design

- 2 -

AcknowledgementsAcknowledgements

• MSU, DRC, WSU and all participants would like to personally thank NEI for the resources to continue with the implementation of project results

• We are encouraged by the enthusiasm of all stakeholders to contribute to and continue with this important economic development and new jobs creation project

• Thank you to NEI for your vision and support to help transform the region!

Page 3: TDL & Exports Regional Intermediary Design

- 3 -

AgendaAgenda

• Welcome• Introductions• Hub Implementation Status• Best Practices Hub Research• Regional Intermediary Capabilities: Breakout 1

– Discussion– Report out

• Organizational Models: Breakout 2– Discussion– Report out

• Planning for next project steps

Page 4: TDL & Exports Regional Intermediary Design

- 4 -

TDL & Exports Regional Intermediary DesignTDL & Exports Regional Intermediary Design

Workshop Guidelines:• All participants will give the meeting our full attention,

positive energy and commitment to the project• All participants will be open, candid and honest and allow

others to do the same• Respect will be the foremost goal of all participants; we will

center on issues, not personalities• All participants will center first on gaining understanding,

second on convincing others• All input raised will be captured for future use and shared

with all attendees• Think FUTURE; Think strategic; Think CAN DO !

Page 5: TDL & Exports Regional Intermediary Design

- 5 -

IntroductionsIntroductions

• Name• Role• Representing

Page 6: TDL & Exports Regional Intermediary Design

- 6 -

TDL & Exports Regional Intermediary DesignTDL & Exports Regional Intermediary Design

Workshop Desired Outcomes:

• Assess and Prioritize Regional Hub Capabilities• Evaluate Regional Hub Organizational and

Governance Models• Agree on next steps to assure project

implementation succeeds

Page 7: TDL & Exports Regional Intermediary Design

- 7 -

AgendaAgenda

• Welcome• Introductions• Hub Implementation Status• Best Practices Hub Research• Regional Intermediary Capabilities: Breakout 1

– Discussion– Report out

• Organizational Models: Breakout 2– Discussion– Report out

• Planning for next project steps

Page 8: TDL & Exports Regional Intermediary Design

- 8 -

Regional Economic OpportunityRegional Economic Opportunity

Page 9: TDL & Exports Regional Intermediary Design

- 9 -

SE MI: A Connected Region and EconomySE MI: A Connected Region and Economy

Highway and Rail Corridors

Map: Courtesy of Gallis and Associates

Page 10: TDL & Exports Regional Intermediary Design

- 10 -

Cities with SCM CapabilitiesCities with SCM Capabilities

City Supply Chain Management Capabilities

Memphis, TN Memphis was one of the first supply chain hubs building on its location as the global hub for Federal Express. The FedEx hub has attracted storage and processing facilities that can take advantage of the inbound and outbound movement of air freight. The educational needs of the region are supported strongly by programs at the University of Memphis.

Louisville, KY Louisville was the second major supply chain hub building on its location as the global hub for United Parcel Service. The UPS hub has attracted storage and processing facilities that can take advantage of the inbound and outbound movement of air freight. The educational needs of the region are supported strongly by programs at the University of Louisville.

Kansas City, MO Created an inter-modal hub including rail, motor, and air to facilitate movement and processing of goods throughout the central Midwest. The initiatives include a strong focus on education.

Chicago, IL Chicago has always been a major manufacturing and distribution center due to its proximity to inter-modal transportation services and its population density. While this will continue, Chicago locations are being challenged by other sites due to increasing congestion.

Columbus, OH Building on the Rickenbacker Airport and other inter-modal capabilities, Columbus has established itself as a distribution hub for fashion, electronics, and appliances. The initiatives include a strong focus on education.

Indianapolis, IN Indianapolis is positioning itself as a less congested alternative for Chicago as a distribution hub particularly for electronics and parts. Indianapolis is focusing on cross-country rail and truck movements. This initiative has some focus on education but not to the degree that Memphis, Louisville, Kansas City, and Columbus have.

SEMI/NWOH/SWON ?????????????????????????????

Page 11: TDL & Exports Regional Intermediary Design

- 11 -

TDL and Exports Strategy: Future Vision TDL and Exports Strategy: Future Vision

• World class cross-border distribution hub – Air freight to motor freight – Rail freight to motor freight– Value added services

• Lowest overall cost to serve for industry partners• Superior customer service for industry partners

and their respective customers• State of the art supply chain technology• Excellent management and labor talent • Win-win-win relationships with industry partners,

service providers, and supply chain hub

Page 12: TDL & Exports Regional Intermediary Design

- 12 -

TDL and Exports Strategy: SE MI AdvantagesTDL and Exports Strategy: SE MI Advantages

• Cross-border distribution hub away from congestion of Chicago-Toronto

• Trans-loading heavy imports from ocean ports with less congestion to U.S. using railroads

• Good airport, highway, and rail infrastructure with limited congestion

• Skilled Export and TDL management and labor talent is readily available

• Economical outbound motor carrier capacity

Page 13: TDL & Exports Regional Intermediary Design

- 13 -

The Bottom Line !The Bottom Line !

• Opportunity Assessment has re-enforced the economic development potential for the Hub– 66,000 new jobs created– Doing nothing may run the risk of additional jobs lost

• Maintaining momentum over the next few months will be critical to project success

• Each of us will play a key role to assure 66,000 new jobs are created…..starting today !

Page 14: TDL & Exports Regional Intermediary Design

- 14 -

Three Stages of SCM Economic ActivityThree Stages of SCM Economic Activity

Stage 1 (Current)

Economic activity associated with SCM

Stage 2 (+3 years)

Economic activity associated with SCM

following recovery

Stage 3 (+7 to10 years)

Enhanced economic activity associated with SCM scale

and industry attraction

Page 15: TDL & Exports Regional Intermediary Design

- 15 -

What Does it Take to Go from Stage 2 to Stage 3?What Does it Take to Go from Stage 2 to Stage 3?

Stage 2 (+3 years)

Economic activity associated with SCM

following recovery

Stage 3 (+7 to10 years)

Enhanced economic activity associated with SCM scale

and industry attraction

Stage 1 (Current)

Economic activity associated with SCM

Page 16: TDL & Exports Regional Intermediary Design

- 16 -

Target Industries: Cluster DescriptorsTarget Industries: Cluster Descriptors

• HEAVY: Heavy Manufacturing and industrial cluster attracted to hub for resource efficiency and differentiation– Automotive renewal– Alternative energy– Carbon fiber manufacturing– Chemical processing– Defense– Electronics – industrial

• LIGHT: Light Manufacturing and industrial cluster attracted to hub for resource efficiency and differentiation– Food processing– Medical technologies– Water technologies

• DISTRIBUTION: Warehousing and consumer based industry attracted to hub market location for distribution and value added services– Beverage and alcohol distribution– Retail importing and value add– Waste management

Page 17: TDL & Exports Regional Intermediary Design

- 17 -

Economic Evaluation: Heavy ManufacturingEconomic Evaluation: Heavy Manufacturing

Industry Stage 2 Economic

Forecast ($M)

Stage 3 Economic

Forecast with Hub

($M)

Increase Resulting from Hub

($M)

Stage 2 Job

Activity (000)

Stage 3 Job

Activity with Hub

(000)

Increase Resulting from Hub

(000)

Automotive renewal

5,084 6,609 1,525 62.7 81.5 18.8

Alternative energy

757 1,056 299 4.0 5.5 1.5

Chemical processing

6,682 7,717 1,035 56.6 65.4 8.8

Defense 3,739 4,461 722 24.0 28.7 4.7

Electronics -Industrial

4,069 5,250 1,181 22.0 28.4 6.4

Forestry and bio-fuels

919 1,231 312 2.8 3.8 1.0

Total 21,250 26,324 5,074 172.1 213.3 41.2

Page 18: TDL & Exports Regional Intermediary Design

- 18 -

SCM Industry Activity – Heavy ManufacturingSCM Industry Activity – Heavy Manufacturing

$ ?

Jobs ?

$ 21,250M

Jobs 172,100

$26,324M (23.8% increase)

Jobs 213,300 (23.4% increase)

Stage 1 (Current)

Economic activity associated with SCM

Stage 2 (+3 years)

Economic activity associated with SCM

following recovery

Stage 3 (+7 to10 years)

Enhanced economic activity associated with SCM scale

and industry attraction

Page 19: TDL & Exports Regional Intermediary Design

- 19 -

Economic Evaluation: Light Manufacturing, DistributionEconomic Evaluation: Light Manufacturing, Distribution

Industry Stage 2 Economic

Forecast ($M)

Stage 3 Economic

Forecast with Hub

($M)

Increase Resulting from Hub

($M)

Stage 2 Job

Activity (000)

Stage 3 Job

Activity with Hub

(000)

Increase Resulting from Hub

(000)

Food, beverage

9,550 10,285 735 82.6 89.0 6.4

Wholesale trade

4,573 6,127 1,554 20.0 26.8 6.8

Retail trade 5,123 6,864 1,741 15.1 20.3 5.2

Warehouse & storage

3,659 4,902 1,243 11.1 14.9 3.8

Waste management

2,946 3,572 626 15.2 18.5 3.3

Total 25,851 31,750 5,476 144.0 169.5 25.5

Page 20: TDL & Exports Regional Intermediary Design

- 20 -

SCM Industry Activity – Light Manufacturing/DistributionSCM Industry Activity – Light Manufacturing/Distribution

$ ?

Jobs ?

$ 25,851 M

Jobs 144,000

$ 31,750 M (22.8% increase)

Jobs 169,500 (17.7% increase)

Stage 1 (Current)

Economic activity associated with SCM

Stage 2 (+3 years)

Economic activity associated with SCM

following recovery

Stage 3 (+7 to10 years)

Enhanced economic activity associated with SCM scale

and industry attraction

Page 21: TDL & Exports Regional Intermediary Design

- 21 -

Total SCM Industry Economic ActivityTotal SCM Industry Economic Activity

$ ?

Jobs ?

$ 47,101 M

Jobs 316,100

$ 58,074 M (23.3% increase)

Jobs 382,800 (20.8% increase)

Stage 1 (Current)

Economic activity associated with SCM

Stage 2 (+3 years)

Economic activity associated with SCM

following recovery

Stage 3 (+7 to10 years)

Enhanced economic activity associated with SCM scale

and industry attraction

Page 22: TDL & Exports Regional Intermediary Design

- 22 -

Summary of Enhanced Economic ActivitySummary of Enhanced Economic Activity

Industry Cluster Increase in Economic

Development

Number of New Jobs Created

Heavy Manufacturing $5 Billion 41,200 New Jobs

Light Manufacturing and Distribution

$5.5 Billion 25,500 New Jobs

TOTAL Over $10 Billion Over 66,000 New Jobs

Page 23: TDL & Exports Regional Intermediary Design

- 23 -

Supply Chain Opportunity Assessment:Implementation of Findings – Work ActivitiesSupply Chain Opportunity Assessment:Implementation of Findings – Work Activities

• Piloting the Implementation Approach• Education, Sharing of Findings, and

Communications• Recommendation of Organization Model and

Intermediary• Recommendations for Long Term Sustainability

Model

Page 24: TDL & Exports Regional Intermediary Design

- 24 -

Supply Chain Opportunity Assessment:Implementation of Findings – Work ActivitiesSupply Chain Opportunity Assessment:Implementation of Findings – Work Activities

• Piloting the Implementation Approach– Select a company in a chosen industry to serve as the

pilot for supply chain strategy implementation– Identify key public and private stakeholders critical for

project design and implementation– Pilot the strategy implementation by designing and

implementing a supply chain solution for the chosen company

– Pilot the implementation of policies to assure pilot success

Page 25: TDL & Exports Regional Intermediary Design

- 25 -

Supply Chain Opportunity Assessment:Implementation of Findings – Work ActivitiesSupply Chain Opportunity Assessment:Implementation of Findings – Work Activities

• Piloting the Implementation Approach• Education, Sharing of Findings, and Communications

– Share findings with appropriate organizations– Conduct implementation workshops for interested and

impacted stakeholders– Develop program for ongoing communications

Page 26: TDL & Exports Regional Intermediary Design

- 26 -

Supply Chain Opportunity Assessment:Implementation of Findings – Work ActivitiesSupply Chain Opportunity Assessment:Implementation of Findings – Work Activities

• Piloting the Implementation Approach• Education, Sharing of Findings, and Communications• Recommendation of Organization Model and

Intermediary– Review examples of successful multi-jurisdiction, multi-state,

and multi-nation organizational models– Identify leader organization and governance to implement supply

chain strategy– Recommend Intermediary and Champion to pursue

implementation– Ensure capabilities of supply chain expertise, economic

development, collaboration and grantsmanship are embedded within the intermediary

Page 27: TDL & Exports Regional Intermediary Design

- 27 -

Supply Chain Opportunity Assessment:Implementation of Findings – Work ActivitiesSupply Chain Opportunity Assessment:Implementation of Findings – Work Activities

• Piloting the Implementation Approach• Education, Sharing of Findings, and Communications• Recommendation of Organization Model and Intermediary• Recommendations for Long Term Sustainability Model

– Determine appropriate organizational and staffing model to assure long term implementation success

– Implement economic development policies based on lessons learned from the pilot

– Develop long term sustainability model for ongoing operations of intermediary

Page 28: TDL & Exports Regional Intermediary Design

- 28 -

AgendaAgenda

• Welcome• Introductions• Hub Implementation Status• Best Practices Hub Research• Regional Intermediary Capabilities: Breakout 1

– Discussion– Report out

• Organizational Models: Breakout 2– Discussion– Report out

• Planning for next project steps

Page 29: TDL & Exports Regional Intermediary Design

- 29 -

TDL and Exports Hub Best Practices ResearchTDL and Exports Hub Best Practices Research

• Best Practices Hub Capabilities

• Best Practices Organizational and Governance Models

Page 30: TDL & Exports Regional Intermediary Design

- 30 -

TDL and Exports Hub CapabilitiesTDL and Exports Hub Capabilities

The Phase 1 Opportunity Assessment Concluded the Supply Chain Hub CapabilitiesShould Fit into the Following Four Competencies:

• Supply Chain Expertise

• Economic Development

• Strategic Infrastructure / Intermediary Funding

• Collaboration

Page 31: TDL & Exports Regional Intermediary Design

- 31 -

TDL and Exports Hub Capabilities from Best Practice ResearchTDL and Exports Hub Capabilities from Best Practice Research

• Supply Chain Expertise– Economic Competitiveness and Lowest Supply Chain

Cost to Serve– Supply Chain Sustainability– Infrastructure / Modal Support

• Economic Development– Competitive Tax Environment– Ability to Serve Global Markets

• Strategic Infrastructure / Intermediary Funding– Infrastructure Support and Capabilities

• Collaboration– Joint Commission or Authority– Strategic Alliances

Page 32: TDL & Exports Regional Intermediary Design

- 32 -

Hub Capabilities: Best Practices ResearchHub Capabilities: Best Practices Research

Page 33: TDL & Exports Regional Intermediary Design

- 33 -

Hub Capabilities: Best Practices ResearchHub Capabilities: Best Practices Research

Page 34: TDL & Exports Regional Intermediary Design

- 34 -

Best Practices Research Focused On The Following GeographiesBest Practices Research Focused On The Following Geographies

Geography Title Target Industry

Arkansas / Oklahoma Bi-State Metropolitan Planning Organization Retail

Chicago Chicagoland Chamber of Commerce Diverse

Columbus Columbus Region Logistics Council/Chamber and Rickenbacker Global Logistics Park

Appliance / Fashion

Georgia Georgia Center of Innovation Logistics (Page Siplon) State/Georgia Tech

Bioscience, Tech

Indianapolis Greater Indianapolis Chamber of Commerce,and Develop Indy and Conexus

Electronics

Kansas City KC SmartPort Fast Moving Consumer Goods

Louisville Greater Louisville Inc. Repair / Maintenance

Memphis Regional Logistics Council/Chamber Distribution

NW Indiana NW Indiana Forum

New York / New Jersey NY/NJ Port Authority Diverse

Toledo Regional Growth Partnership/Port Authority/TMACOG Glass, Plastic, Metal

Toronto City of Toronto and Invest Toronto Financial Services, Life Sciences

Windsor Port Windsor and Windsor – Essex Chamber of Commerce Eng, R&D, Agriculture, Tourism

Page 35: TDL & Exports Regional Intermediary Design

- 35 -

Target Industries for MI HubTarget Industries for MI Hub

• Heavy Manufacturing– Automotive renewal– Alternative energy– Carbon fiber manufacturing– Chemical processing– Defense– Electronics – industrial

• Light Manufacturing– Food processing– Medical technologies– Water technologies

• Distribution– Beverage and alcohol distribution– Retail importing and value add– Waste management

Page 36: TDL & Exports Regional Intermediary Design

- 36 -

Supply Chain ExpertiseSupply Chain Expertise

Descriptor SymbolAbove AverageAverageLaggingUnknown

GEOGRAPHIES

CAPABILITIES:

AR /

OKCh

icago

Colu

mbu

sGe

orgi

aIn

dian

apol

isKa

nsas

City

Loui

svill

eM

emph

isNW

Indi

ana

NY /

NJTo

ledo

Toro

nto

Win

dsor

Supply Chain SustainabilityCust Service & ReliabilitySecurityGreen / Environ AspectsSupply Chain Skilled Labor

Economic CompetitivenessHub Operations CostHub Service LevelsIB / OB Shipping Balance

Infrastructure / Modal SupportIdentifying Strategic CorridorsLand & Facility AvailabilityTechnology Enablers

Page 37: TDL & Exports Regional Intermediary Design

- 37 -

Supply Chain Expertise – MI Hub RatingsSupply Chain Expertise – MI Hub Ratings

Descriptor SymbolAbove AverageAverageLaggingUnknown

CAPABILITIES: MI NotesSupply Chain SustainabilityCust Service & Reliability Strong position but costs and uncertainty increasingSecurity Consumers and regulators expecting increased securityGreen / Environ Aspects Firms strongly focus on low cost suppliersSupply Chain Skilled Labor Readily available labor

Economic CompetitivenessHub Operations Cost Higher cost to operate

Hub Service LevelsManagerial and skilled labor may create advantages; northern fringe location may inhibit access to entire U.S.

IB / OB Shipping Balance Trade imbalance; excess empty containers

Infrastructure / Modal SupportIdentifying Strategic Corridors Identified, but importance is unclearLand & Facility Availability Competitive real estate prices

Technology EnablersGood resources and capabilities: EDI, RFID, GPS tracking, demand, visibility systems, TMS, WMS, trade mgmt systems skills

Relative Importance

Page 38: TDL & Exports Regional Intermediary Design

- 38 -

Economic DevelopmentEconomic Development

Descriptor SymbolAbove AverageAverageLaggingUnknown

GEOGRAPHIES

CAPABILITIES:

AR /

OKCh

icago

Colu

mbu

sGe

orgi

aIn

dian

apol

isKa

nsas

City

Loui

svill

eM

emph

isNW

Indi

ana

NY /

NJTo

ledo

Toro

nto

Win

dsor

Ability to Service Global MarketsUnderstanding Global LandscapeUse of MarketingUS Border Trade CorridorNAFTA Transport LinksAccess to PortsCustoms & Related ServicesForeign Trade Zone Facilities

Competitive Tax ClimateTax Abatement and IncentivesProperty Taxes on EquipmentBusiness TaxIncome Tax

Page 39: TDL & Exports Regional Intermediary Design

- 39 -

Economic Development – MI Hub RatingsEconomic Development – MI Hub Ratings

Descriptor SymbolAbove AverageAverageLaggingUnknown

CAPABILITIES: MI NotesAbility to Service Global MarketsUnderstanding Global Landscape Strong understanding of global supply chain operationsUse of Marketing Need for better communicationUS Border Trade Corridor Some infrastructure and institutional barriers for US / Canada borderNAFTA Transport Links Access to multiple transportation modes but limited integrationAccess to Ports Provides competitive option between U.S. eastern ports and CanadaCustoms & Related Services Services already in place but benefits not fully realizedForeign Trade Zone Facilities High quality, underutilized capability

Competitive Tax ClimateTax Abatement and Incentives Competitive, targetedProperty Taxes on Equipment Relatively highBusiness Tax Gross receipts intensity and surcharge issuesPersonal Income Tax Relatively low and flat

Relative Importance

Page 40: TDL & Exports Regional Intermediary Design

- 40 -

Strategic Infrastructure / Intermediary FundingStrategic Infrastructure / Intermediary Funding

Descriptor SymbolAbove AverageAverageLaggingUnknown

GEOGRAPHIES

CAPABILITIES:

AR /

OKCh

icago

Colu

mbu

sGe

orgi

aIn

dian

apol

isKa

nsas

City

Loui

svill

eM

emph

isNW

Indi

ana

NY /

NJTo

ledo

Toro

nto

Win

dsor

Infrastructure DesignAirport CapabilityInterstate HighwaysRailroal NetworkIntermodal CapacityDistribution FacilityPort CapabilityNetwork Resiliency

Page 41: TDL & Exports Regional Intermediary Design

- 41 -

Strategic Infrastructure / Intermediary Funding – MI Hub RatingsStrategic Infrastructure / Intermediary Funding – MI Hub Ratings

Descriptor SymbolAbove AverageAverageLaggingUnknown

CAPABILITIES: MI NotesInfrastructure Design

Airport CapabilityDTW airport capacity; frequent direct Asian flights; available capacity for dedicated and belly cargo freight

Interstate HighwaysNetwork of I-75, I-94, and I-69 is less congested than Chicago’s, great connectivity, but aging

Railroad NetworkUS-Canada railroads pass through Michigan; shipper access to NS and CSX through Conrail; access to U.S. East coast and Chicago

Intermodal Capacity Several dispersed facilities with excess capacityDistribution Facility Good private, leased, and public warehouse capacityPort Capability Mostly bulk shipping and in need of fundingNetwork Resiliency Infrastructure developed, but in need of updating

Relative Importance

Page 42: TDL & Exports Regional Intermediary Design

- 42 -

CollaborationCollaboration

Descriptor SymbolInnovativeAdequateLaggingUnknown

GEOGRAPHIES

CAPABILITIES:

AR /

OKCh

icago

Colu

mbu

sGe

orgi

aIn

dian

apol

isKa

nsas

City

Loui

svill

eM

emph

isNW

Indi

ana

NY /

NJTo

ledo

Toro

nto

Win

dsor

Strategic AlliancesStreamlined GovernmentFostering InnovationCommunity InvolvementSupplier CapabilitiesEngaging Federal GovernmentParterning with EducationLeverage Business Partnership

Joint Commission or AuthorityFinancial CapitalInfrastructure BankStrategic Transportation PlanInformation Sharing

Page 43: TDL & Exports Regional Intermediary Design

- 43 -

Collaboration – MI Hub RatingsCollaboration – MI Hub Ratings

Descriptor SymbolInnovativeAdequateLaggingUnknown

CAPABILITIES: MI NotesStrategic AlliancesStreamlined Government Complex business taxes and lawsFostering Innovation Need for better promotion of collaboration Community Involvement Need for better communication and outreachSupplier Capabilities Strong supply baseEngaging Federal Government Understanding better role and responsibilitiesParterning with Education Need for additional collaboration projectsLeverage Business Partnership Better use of resources

Joint Commission or AuthorityFinancial Capital Lack of venture capitalists and angel fundingInfrastructure Bank Does not existStrategic Transportation Plan Transportation dollars prioritized with local considerationsInformation Sharing Need for additional opportunities and resources

Relative Importance

Page 44: TDL & Exports Regional Intermediary Design

- 44 -

AgendaAgenda

• Welcome• Introductions• Hub Implementation Status• Best Practices Hub Research• Regional Intermediary Capabilities:

Breakout 1– Discussion– Report out

• Organizational Models: Breakout 2– Discussion– Report out

• Planning for next project steps

Page 45: TDL & Exports Regional Intermediary Design

- 45 -

TDL & Exports Regional Intermediary Design – Break Out Session OneTDL & Exports Regional Intermediary Design – Break Out Session One

Small group breakout #1: Assess and Prioritize Regional Intermediary Capabilities

• What capabilities are essential to achieve the economic development opportunities? What is their relative importance?

• What are the current gaps for implementing the prioritized hub capabilities?

• How can we differentiate our hub from other regions based on the implementation of the prioritized capabilities?

Page 46: TDL & Exports Regional Intermediary Design

- 46 -

Breakout Group AssignmentsBreakout Group Assignments

Each Group will explore the Hub Capabilities associated with the following Competencies:

• Supply Chain Expertise – Group A

• Economic Development – Group B

• Strategic Infrastructure & Intermediary Funding – Group C

• Collaboration – Group D

Page 47: TDL & Exports Regional Intermediary Design

- 47 -

AgendaAgenda

• Welcome• Introductions• Hub Implementation Status• Best Practices Hub Research• Regional Intermediary Capabilities: Breakout 1

– Discussion– Report out

• Organizational Models: Breakout 2– Discussion– Report out

• Planning for next project steps

Page 48: TDL & Exports Regional Intermediary Design

- 48 -

TDL and Exports Hub Best Practices ResearchTDL and Exports Hub Best Practices Research

• Best Practices Hub Capabilities

• Best Practices Organizational and Governance Models

Page 49: TDL & Exports Regional Intermediary Design

- 49 -

Governance ModelsGovernance Models

• Port Authority Model

• Port Authority “Lite” Model

• Public / Private Partnership Model

• Industry Collaboration Model

Page 50: TDL & Exports Regional Intermediary Design

- 50 -

Attributes for Organizational ModelsAttributes for Organizational Models

• Government Regulatory Power• Governance• Funding• Expertise focus• Multi-state / Multi-nation Collaboration• International or Export Focused• Reliance on Smart Zones• Foreign Investments

Page 51: TDL & Exports Regional Intermediary Design

- 51 -

Attributes Aligned to Organizational Models Attributes Aligned to Organizational Models

Port Authority Port Authority Lite Public Private Partnership

Industry Collaboration

Government Regulatory Power

Governance

Funding

Expertise focus

Multi-state / Multi-nation Collaboration

International or Export Focused

Reliance on Smart Zones

Foreign Investments

Page 52: TDL & Exports Regional Intermediary Design

- 52 -

General Port Authority CharacteristicsGeneral Port Authority Characteristics

• A government-created, owned, and governed organization• With or without private sector representation (not that material to the

powers)• With a dedicated source of revenue(s) for its operations (from  government

budgets or from a tax or fee stream)• Ability to tax, or to go to the taxpayers for taxes• Ability to assemble and own land for development and development deals

within its territory or jurisdiction• Ability to design incentives or use incentives designed by its government

owners• Ability to bond• Ability to impose user fees• Ability to own facilities• Ability to operate facilities• Ability to select and authorize supply chain/TDL operators within its

boundaries• Ability to create and operate foreign trade zones• Ability to market itself to shippers and their carriers• A planning capability (independent of but connected with, the council of

governments)

Page 53: TDL & Exports Regional Intermediary Design

- 53 -

Port Authority ModelPort Authority Model

• NY / NJ Port Authority• Governor of each state appoints 6 members that serve

for 6 years• Funded from revenue of facility operation, bridge / tunnel

tolls, airport and bus user fees, rail fares, rent from facilities, consumer services, and from retail stores

• Role– Promote and protect the commerce of the Port District and

undertake improvements

• Interface with private sector in form of regulatory body and collector of fees

• Powers include collecting fees and approving / managing port improvements

Page 54: TDL & Exports Regional Intermediary Design

- 54 -

Port Authority Model (NY/NJ Port Authority)Port Authority Model (NY/NJ Port Authority)

• Ability to own and develop facilities• Ability to select/authorize supply chain/TDL operators

within its boundaries• Ability to create and operate foreign trade zones• A planning capability (independent of but connected with

the council of governments)

Page 55: TDL & Exports Regional Intermediary Design

- 55 -

Port Authority “Lite” ModelPort Authority “Lite” Model

• Detroit and Toledo Port Authorities• Primarily public sector governance• Limited regulatory powers• Revenue growth driven by export and import• Limited geographic scope• Limited mode scope• Funded from use of modes within Port Authority

control

Page 56: TDL & Exports Regional Intermediary Design

- 56 -

Public / Private Partnership ModelPublic / Private Partnership Model

• KC Smartport• Board Consists of Public (DOT, MPO, Airports, Econ

Develop Corps), Private (TDL, Consultant, Chambers) and Universities from two states

• Funded in part by dues or donations (“investments”) from board members’ organizations

• Roles– Market– Site Location Assistance (Real Estate and Transportation)– Advocacy for Global Logistics Mindset– Transportation Resources Connections– Supply Chain Education– Supply Chain Data Exchange

Page 57: TDL & Exports Regional Intermediary Design

- 57 -

Industry Collaboration ModelIndustry Collaboration Model

• Example – Columbus 2020• Objectives

– Add 180,000 jobs by 2020– Increase per capita personal income by 40% by 2020– Attract capital investment of $10 billion– Become a recognized national leader in economic

development by 2020

• Focus on value added potential rather than infrastructure

Page 58: TDL & Exports Regional Intermediary Design

- 58 -

Industry Collaboration Model (Columbus)Industry Collaboration Model (Columbus)

• Initial organizational representation– Columbus Partnership– Columbus Chamber– Battelle– NetJets– Cardinal Health

• Columbus MSA– Licking– Fairfield– Pickaway– Madison– Union– Delaware– Morrow

Page 59: TDL & Exports Regional Intermediary Design

- 59 -

Industry Collaboration Model (Columbus)Industry Collaboration Model (Columbus)

• Pillars of activity– Retention and expansion of existing businesses– Attraction of major employers to establish operations

in Central Ohio– Creation of more commercial enterprises by

leveraging research assets– Support of civic infrastructure and political conditions

that enhance the economic development environment

Page 60: TDL & Exports Regional Intermediary Design

- 60 -

Industry Collaboration Model (Columbus)Industry Collaboration Model (Columbus)

• How different than past efforts– Shared community vision and goals– Implementation is led collaboratively by individuals from

throughout the region– Goals have clear metrics to track progress– Developed a clear set of strategies and initiatives based on

goals– Organized with a central chief economic officer for the region– Significantly increase both the financial and professional

resources dedicated to executing the strategic vision– Failure is not an option

Page 61: TDL & Exports Regional Intermediary Design

- 61 -

Industry Collaboration Model (Columbus)Industry Collaboration Model (Columbus)

• Successful programs require:– A clear regional vision with community buy-in– Active leadership engagement in all phases of the effort, not just

the upfront strategy– A sense of urgency that acts as a forcing mechanism for change

and coordination– Quality of life that reinforces economic-development efforts and

regional prosperity– Belief that workforce development and K-12 education, which

strengthen long-term regional health and talent availability, helps address reputation as a place for businesses

– University involvement in research, commercialization and talent development

– Multi-generational commitment to economic development and a systematic approach

Page 62: TDL & Exports Regional Intermediary Design

- 62 -

Attributes Aligned to Organizational ModelsAttributes Aligned to Organizational Models

Port Authority Port Authority Lite Public Private Partnership

Industry Collaboration

Government Regulatory Power

Extensive Limited

Governance Government Industry collaboration

Funding Tax based Value add or foundation

Expertise focus Public sector infrastructure

Supply chain integration

Multi-state / Multi-nation Collaboration

Numerous cases Limited evidence

International or Export Focused

Extensive Reduced

Reliance on Smart Zones

Yes Yes

Foreign Investments

Extensive Limited

Page 63: TDL & Exports Regional Intermediary Design

- 63 -

Hub Organization Model TypesHub Organization Model Types

GEOGRAPHIES

CAPABILITIES:

Port AuthorityPort Authority "Lite"Public / PrivateIndustry Collaboration

Page 64: TDL & Exports Regional Intermediary Design

- 64 -

AgendaAgenda

• Welcome• Introductions• Hub Implementation Status• Best Practices Hub Research• Regional Intermediary Capabilities: Breakout 1

– Discussion– Report out

• Organizational Models: Breakout 2– Discussion– Report out

• Planning for next project steps

Page 65: TDL & Exports Regional Intermediary Design

- 65 -

TDL & Exports Regional Intermediary Design – Break Out Session TwoTDL & Exports Regional Intermediary Design – Break Out Session Two

Small group breakout #2: Evaluate and Recommend Hub Organizational Model

• Validate attribute alignment for the breakout organizational model

• Which combination of attributes are appropriate for the region?• What are the strengths and weaknesses of the organizational

model?• What refinements or extensions would be necessary?• Who are the stakeholders and/or Board members?• How does the model interface with industry and government?

Page 66: TDL & Exports Regional Intermediary Design

- 66 -

Breakout Group AssignmentsBreakout Group Assignments

Each Group will explore the Hub Organizational Model Concepts associated with the following Model Types:

• Port Authority Model – Group A

• Port Authority “Lite” Model – Group B

• Public/Private Partnership Model – Group C

• Industry Collaboration Model – Group D

Page 67: TDL & Exports Regional Intermediary Design

- 67 -

AgendaAgenda

• Welcome• Introductions• Hub Implementation Status• Best Practices Hub Research• Regional Intermediary Capabilities: Breakout 1

– Discussion– Report out

• Organizational Models: Breakout 2– Discussion– Report out

• Planning for next project steps

Page 68: TDL & Exports Regional Intermediary Design

- 68 -

TDL & Exports Regional Intermediary DesignTDL & Exports Regional Intermediary Design

Preparation for Workshop Two:

April 29, 2011 at MSU Detroit Center

Workshop Two topics:• Validate necessary hub capabilities to assure project success• Recommend hub organizational and governance model• Develop plan to work with pilot companies towards implementation

Page 69: TDL & Exports Regional Intermediary Design

- 69 -

TDL & Exports Regional Intermediary DesignTDL & Exports Regional Intermediary Design

Workshop Participant Feedback