Airline Junction
Evaluating the Economic Impacts of Expanded
Truck-Rail Intermodal Capacity in Northwest Ohio
Thursday, May 28, 2009
Richard S. Martinko, P.E.
Director: Intermodal Transportation Institute
University Transportation Center
1
JITF Members
• James M. Tuschman – Chairman
– Barkan & Robon Ltd.
– Member and Secretary, Ohio Board of Regents
• Rick Anderson
– President, Radco industries
• Thomas R. Blaha
– Executive Director, Wood County Economic Development Commission
• Ed Bryant
– Vice President & Treasurer,
– Retreat Associates, Inc.
• Jerry Chabler
– Director, Toledo-Lucas County Port Authority Board of Directors
• Dave Dysard
– District 2 Deputy Director,
– Ohio Department of Transportation
4
JITF Members
• Keith G. Earley
– Lucas County Engineer
• Warren Henry, P.E.
– Vice President of Transportation,
– Toledo Metropolitan Area Council of Governments
• Jim Jacobs
– American Rail Center
• Thomas Kovacik
– Kovacik Consulting/TAGNO
– (Transportation Advocacy Group of Northwest Ohio)
• Richard Martinko, P.E.
– Director, Intermodal Transportation Institute
– The University of Toledo
• Brian W. McMahon
– President, Danberry National Ltd.
5
JITF Members
• Edwin Nagle, III
– President/CEO, Nagle Companies, Inc.
• J. Patrick Nicholson
– CEO, RCRA Clean Energy Solutions, Inc.
• Harold Salverda
– Deputy Director (Retired),
– Toledo Metropolitan Area Council of Governments
• James Seney
– Executive Director (Retired),
– Ohio Rail Development Commission;
– Director of Transportation Based Development, VRG Group
• Paul L. Toth, Jr.
– Interim President,
– Toledo-Lucas County Port Authority
6
JITF Members
• James F. White, Jr.
– Shumaker, Loop & Kendrick, LLP
• Sue A. Wuest
– Assistant Director, Urban Affairs Center
– The University of Toledo
• Ex Officio
– Dave Amstutz
– Director, Department of Development
– City of Toledo
– Joe Cappel
– Senior Manager of Business Development– Seaport, Toledo-Lucas
County Port Authority
7
Major JITF Report Activities
• Literature review
• Meetings with transportation stakeholders
– CSX Railroad
– Norfolk Southern Railroad
– CN Railroad
– Melford Terminals
– Toledo Trucking Association
– Ohio Trucking Association
– United Parcel Service
– Midwest Terminals
– The Andersons
– Elected/Appointed Officials
– TAGNO (Transportation Advocacy Group Northwest Ohio)
– Monroe County Officials
– Eileen Granata (Ohio Department of Development)
– TMACOG
– Toledo City Council
– University of Toledo Intermodal Transportation Institute (ITI)
– University of Toledo Department of Economics
– University of Toledo Department of Geography
– Toledo Lucas County Port Authority
8
Major JITF Report Activities
• Site Visits
– Airline Junction
– Toledo Express Airport
– Midwest Terminals
– Toledo Lucas County Port
– Economic Development Areas (Various)
– North Baltimore
• Attended Ohio 21st Century Transportation Priorities Task Force event at the U. Toledo
– Presenter
• Attended the Ohio Conference on Freight
– Presenter
• Attended the TMACOG Transportation Summit
– Presenter
• Presented economic development concepts to ODOD
– Mark Barbash (Ohio Department of Development)
– Matt Dietrich (Executive Director of the Ohio Rail Development Commission)
• Made presentations to diverse groups
• Sponsored stakeholder update breakfast at U. Toledo
– Approximately 60 attendees. (Legislators, Community Leaders, Lucas County Officials, Other
Public Officials, Private Sector Businesses)
9
Joint Intermodal Task Force Report
1.
Introduction
2.
Task Team Process
3. Drivers Of Intermodal Feasibility
4.
Project Recommendations
5.
Activities And Support Information
6.
Evaluating Project Impacts
7.
Lake Erie West Commerce Corridor
8.
Moving Our Vision Forward
•
Appendices
–
A – Northwest Ohio Areas of Strength
–
B – Ohio Department of Development Presentation
–
C – Agendas of Meetings
10
Joint Intermodal Task Force Report
1.
Introduction
2.
Task Team Process
3. Drivers Of Intermodal Feasibility
4.
Project Recommendations
5.
Activities And Support Information
6.
Evaluating Project Impacts
7.
Lake Erie West Commerce Corridor
8.
Moving Our Vision Forward
•
Appendices
–
A – Northwest Ohio Areas of Strength
–
B – Ohio Department of Development Presentation
–
C – Agendas of Meetings
11
Recommendations
Recommendation #1: Pursue Airline Junction as a rail intermodal site in
partnership with Norfolk Southern and the State of Ohio
(ODOD).
Recommendation #2: Build regional economic development strategies that
maximize the Airline Junction return on investment,
including the re-development of over 2,000 acres of
industrial land in target development areas in the City of
Toledo.
Recommendation #3: Pursue a Lake Erie West Commerce Corridor Strategy
that incorporates a joint marketing effort and alliance
with that region’s stakeholders.
Recommendation #4: Build a new Schenker / Bax Customs Facility at the
Toledo Express Airport
Recommendation #5: Acquire a modern crane and reach stacker at the Toledo
Seaport for more efficient and competitive intermodal
cargo handling ability.
14
Recommendations
Recommendation #1: Pursue Airline Junction as a rail intermodal site in
partnership with Norfolk Southern and the State of Ohio
(ODOD).
Recommendation #2: Build regional economic development strategies that
maximize the Airline Junction return on investment,
including the re-development of over 2,000 acres of
industrial land in target development areas in the City of
Toledo.
Recommendation #3: Pursue a Lake Erie West Commerce Corridor Strategy
that incorporates a joint marketing effort and alliance
with that region’s stakeholders.
Recommendation #4: Build a new Schenker / Bax Customs Facility at the
Toledo Express Airport
Recommendation #5: Acquire a modern crane and reach stacker at the Toledo
Seaport for more efficient and competitive intermodal
cargo handling ability.
15
Active Intermodal
Detroit
Chicago
Toledo
Cleveland
FtWayne
Columbus
16
Consistent Message - Building On Past Effort
Airline
Junction
17
Lang Yd. / Monroe Mi.
Port
Toledo Express Airport
Air Line Jct
19
2006 Population…MSA Catchment
100
50
Source: Bureau of Economic Analysis (BEA)
US Census Bureau
20
2006 Population…MSA Catchment
State
Population
2006
Population
Rank
State
Population
2006
Population
Rank
CA
36,457,549
1
NJ
8,724,560
11
TX
23,507,783
2
VA
7,642,884
12
NY
19,306,183
3
MA
6,437,193
13
FL
18,089,888
4
WA
6,395,798
14
IL
12,831,970
5
IN
6,313,520
15
PA
12,440,621
6
AZ
6,166,318
16
OH
11,478,006
7
Lake Erie West
6,058,683
17
MI
10,095,643
8
TN
6,038,803
18
GA
9,363,941
9
MO
5,842,713
19
NC
8,856,505
10
MD
5,615,727
20
Source: Bureau of Economic Analysis (BEA)
US Census Bureau
21
2005 GDP (millions of $)… MSA Catchment
$271.8 Billion
100
50
Source: Bureau of Economic Analysis (BEA)
US Census Bureau
22
2005 GDP (millions of $)… MSA Catchment
Metropolitan Area
2005 gdp
(millions of $)
gdp
rank
Metropolitan Area
2005 gdp
(millions of $)
gdp
rank
New York-Northern New
Jersey-Long Island
$1,056,381
1
Atlanta-Sandy Springs-Marietta
$242,381
11
Los Angeles-Long BeachSanta Ana
$632,407
2
Miami-Fort Lauderdale-Pompano
Beach
$231,805
12
Chicago-Naperville-Joliet
Seattle-Tacoma-Bellevue
$182,170
13
$461,374
3
Washington-ArlingtonAlexandria
$347,631
4
Minneapolis-St PaulBloomington
$171,361
14
Houston-Sugar Land-Baytown
$316,332
5
Phoenix-Mesa-Scottsdale
$160,028
15
Dallas-Fort Worth-Arlington
$315,544
6
San Diego-Carlsbad-San Marcos
$146,341
16
Philadelphia-CamdenWilmington
$295,236
7
Denver-Aurora
$131,550
17
Lake Erie West
$271,772
8
San Jose-Sunnyvale-Santa Clara
$123,305
18
San Francisco-OaklandFremont
$268,300
9
Baltimore-Towson
$118,063
19
Boston-Cambridge-Quincy
$261,086
St Louis
$116,215
20
10
Source: Bureau of Economic Analysis (BEA)
US Census Bureau
23
Top Retail US Importers Via Ocean Container (2004)
Meijer Distribution Center
100
Menards Distribution Center
50
(7)Lowe’s Distribution Center
(35)Kohl’s Distribution Center
Walgreen’s Distribution Center
Best Buy Distribution Center
Source: Danbury National Ltd
Journal of Commerce and the Port Import/Export Reporting Service
24
Air Line Junction
MI. Load Limit
OH. Load Limit
154,000 lbs
80,000 lbs.
Airline Junction
Existing Intermodal Ramp
Approx. 2500 ft
25
Air Line Junction Connectivity, Maximizing ROI
MI
OH
IR 75
Target Development Areas
IR 75
To Detroit
IR 280
Detroit Ave
Michigan Load Truck Routes
Hill Ave to OTP
Air Line Jct
East Coast
To Chicago
26
Economic Impact Report
Acknowledgements
The University of Toledo Intermodal Transportation Institute, the University Transportation center and its
Director, Richard S. Martinko, P.E., wishes to recognize outstanding work on this report by co-author:
Mark L. Burton, Ph.D., Director, Transportation Economics, Center for Transportation Research,
the University of Tennessee.
Others have provided significant support of and contributions to this report. In alphabetical order they are:
David
Amstutz
City of Toledo
Director, Department of Development
Jerry
Chabler
Toledo-Lucas County Port Authority
Board of Directors
Dr. Lloyd
Jacobs
University of Toledo
President
Peter
Lindquist, Ph.D.
University of Toledo
Department Chair, Department of
Geography and Planning
Christine
Lonsway
University of Toledo
Assistant Director, Intermodal
Transportation Institute
Toledo City Council
City of Toledo
Paul
Toth, Jr
Toledo-Lucas County Port Authority
Interim President
James
Tuschman
Barkan & Robon Ltd., Chairman, Ohio
Board of Regents
Chairman: Joint Intermodal Task Force
28
Economic Impact Study Area
29
2007 Economic Profile Data
A
7 Area
B
County2
C
County
8 NW OH
9
10
D
Sales
$ 62,034,295,252
$ 62,034,295,252
NS Study
E
Jobs
F
Establishments
G
FloorSpace
157,957
157,957
9,770
9,770
96,908,180
96,908,180
Lucas
$
39,314,155,065
91,027
5,608
50,761,490
11
Wood
$
16,113,363,594
30,526
1,670
19,952,630
12
Sandusky
$
3,029,076,774
13,665
894
8,436,470
13
14
Fulton
Ottawa
$
$
1,869,438,094
983,621,378
12,194
6,243
669
555
11,838,390
3,172,350
15
Henry
$
724,640,347
4,302
374
2,746,850
$ 11,648,814,525
$ 11,648,814,525
44,321
44,321
3,637
3,637
25,852,660
25,852,660
16
17 SE MI
18
19
20
NS Study
Monroe
$
6,927,076,741
25,569
2,116
14,760,850
Lenawee
$
4,721,737,784
18,752
1,521
11,091,810
$ 73,683,109,777
202,278
13,407
122,760,840
21
22 Grand Total
30
2007 Economic Profile Data
A
7 County2
8 NS Study
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29 Grand Total
B
NAICS(2) Title
C
D
Sales
Jobs Estabs.
$73,683,109,777
202,278
Manutacturing
$47,962,097,513
93,615
Wholesale Trade
$9,821,103,528
18,643
Retail Trade
$9,084,038,335
51,405
Construction
$2,603,809,045
7,768
Utilities
$1,701,362,203
3,174
Transportation and Warehousing
$1,661,395,489
16,993
Other Services (except Public Administration)
$140,301,499
1,763
Health Care and Social Assistance
$138,291,250
1,890
Mining
$137,722,459
979
Administrative and Support and Waste Management and$128,659,292
Remediation Services
1,514
Professional, Scientific, and Technical Services
$112,624,391
1,325
Real Estate and Rental and Leasing
$49,281,365
605
Accommodation and Food Services
$44,749,275
1,363
Management of Companies and Enterprises
$41,365,000
163
Arts, Entertainment, and Recreation
$20,518,623
359
Information
$14,996,560
167
Agriculture, Forestry, Fishing and Hunting
$14,464,950
371
Finance and Insurance
$4,858,000
36
Educational Services
$1,471,000
145
$73,683,109,777
E
13,407
2,297
1,957
5,230
1,815
74
1,246
251
31
39
100
99
77
38
5
38
15
80
7
8
202,278 13,407
F
FloorSpace
122,760,840
59,858,790
16,031,860
25,025,330
3,708,660
411,020
11,764,740
1,446,380
438,320
210,700
1,450,700
662,390
494,590
267,850
310,600
299,910
52,090
245,840
18,310
62,760
122,760,840
31
Job Creation Impact
Industry
Manufacturing
Wholesale Trade
Retail trade
Construction
Utilities
Transportation & Warehousing
Other services
Health & social services
Mining
Administrative & waste services
Professional- scientific & tech svcs
Real estate & rental
Accommodation & food services
Management of companies
Arts- entertainment & recreation
Information
Ag, Forestry, Fish & Hunting
Finance & insurance
Educational svcs
Total
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Sales
47,962,097,513
9,821,103,528
9,084,038,335
2,603,809,045
1,701,362,203
1,661,395,489
140,301,499
138,291,250
137,722,459
128,659,292
112,624,391
49,281,365
44,749,275
41,365,000
20,518,623
14,996,560
14,464,950
4,858,000
1,471,000
73,683,109,777
Establs
2,297
1,957
5,230
1,815
74
1,246
251
31
39
100
99
77
38
5
38
15
80
7
8
13,407
FloorSpace
59,858,790
16,031,860
25,025,330
3,708,660
411,020
11,764,740
1,446,380
438,320
210,700
1,450,700
662,390
494,590
267,850
310,600
299,910
52,090
245,840
18,310
62,760
122,760,840
Jobs Jobs Created
93,615
21
18,643
22
51,405
61
7,768
3
3,174
1
16,993
506
1,763
28
1,890
51
979
----1,514
21
1,325
46
605
29
1,363
43
163
1
359
9
167
8
371
1
36
20
145
12
202,278
883
Income
$ 641,299
$ 677,982
$ 804,809
$
91,131
$
95,999
$ 17,917,953
$ 336,765
$ 1,219,945
----$ 380,202
$ 1,509,609
$ 371,515
$ 389,243
$
61,179
$ 103,400
$ 171,498
$
9,657
$ 434,783
$ 208,636
$ 25,425,605
Avg Wage
$ 29,845
$ 30,405
$ 13,129
$ 26,759
$ 65,773
$ 35,401
$ 12,003
$ 23,957
----$ 18,104
$ 32,662
$ 12,798
$
9,023
$ 58,038
$ 12,030
$ 22,500
$ 10,827
$ 22,249
$ 18,120
$ 28,736
32
Regional Economic Stimulus Projection
NW Ohio counties most impacted
–
–
–
–
–
–
Lucas
Wood
Fulton
Henry
Ottawa
Sandusky
SE Michigan counties most impacted
– Monroe
– Lenawee
33
Regional Economic Stimulus Projection
Incremental industrial development (7 yrs)
–
98 acres (1,500,000 sf),
$27 million
Total New Permanent Jobs
–
893 Jobs
(direct + indirect) (7 yrs)
Value Added
300 to 500 Jobs
Construction Jobs During Build Out (7 yrs)
Annual salaries
$25.6 million
–
New jobs (direct) (7yrs),
–
New jobs (indirect) (7 yrs) 455
Average annual salary
438
$16.4 million annual salaries
$9.2 million annual salaries
$28,736
34
Regional Economic Stimulus Projection
Total Local Annual Tax Impact
$1,231,866
– Local Property Tax
$487,530
– Local Sales and Use Tax
$166,086
– Toledo Payroll Tax
$578,250
Total State Annual Tax Impact
$1,491,137
– State Sales and Use Tax
$730,780
– State Personal Income Tax
$570,627
– Commercial Activities Tax
$189,730
Total State & Local Annual Tax Impact
$2,723,033
35
Regional Economic Stimulus Summary
36
Regional Economic Stimulus Summary
Incremental industrial development (7 yrs)
–
$27 million
98 acres (1,500,000 sf)
Total New Permanent Jobs (direct + indirect) (7 yrs)
–
In addition to Construction Build Out Jobs
–
438 direct + 455 indirect
893 Jobs
Value Added
Construction Jobs During Build Out (7 yrs)
300 to 500 Jobs
Annual salaries
$25.6 million
–
Average annual salary ($28,736)
Total State & Local Annual Tax Impact
–
Total Local Annual Tax Impact ($1,231,866)
–
Total State Annual Tax Impact ($1,491,137)
Total regional output (7 yrs)
$2,723,033
$112,266,320
37
Air Line Junction Preliminary Concept Layout
2007 Ramp Activity – 26,000 Lifts per Year
2009 Ramp Activity – 28,600 Lifts per Year
After Project Improvements
Ramp Capacity – 60,000 Lifts per Year
Existing Intermodal Ramp
Approx. 2500 ft.
38
Air Line Junction Preliminary Concept Layout
Existing
Ramp
2007 Ramp Activity – 26,000 Lifts
per Intermodal
Year
Approx. 2500 ft
2009 Ramp Activity – 28,600 Lifts per Year
After Project Improvements
Ramp Capacity – 60,000 Lifts per Year
Proposed Intermodal
Ramp Improvements
Approx. 2500 ft
39
Air Line Junction Preliminary Concept Layout
Estimated Project Costs
Est. Cost
N.S.
Stimulus
Contribution Funding Request
Site Development
$469,000
$469,000
RR Track & Crossing
$895,000
$895,000
$5,750,000
$5,750,000
$711,000
$711,000
Contingencies
$1,425,000
$1,425,000
Installation “2 set out & pickup tracks”
$1,900,000
$1,900,000
$190,000
$190,000
$1,420,000
$1,420,000
Totals $12,760,000
$4,010,000
Signal & Electrical
Engineering & Construction
Nasby Diamond
Signalization & Power Switch
ORDC Safety Money
$8,750,00
45
Airline Junction Status and Preliminary Scheduling
• March 26, 2009 – Governor Strickland Announces Priority Transportation
Projects to be Funded by Federal Recovery Act Resources…:”The state
will invest… $6.5 million at Toledo's Airline Junction Intermodal Terminal to
connect freight shipments by air, rail, and truck.”
• May 18, 2009 – Ohio Development Financing Advisory Council (DFAC)
endorses $2.75 million grant that completes Airline Junction Intermodal
funding
• June 1, 2009 – Controlling Boards to execute and approve DFAC funding
recommendation.
• December 1, 2009 – Preliminary design, R/W, and environmental
complete
• January 2010 to April 2010 – NS completes construction drawings
• May 2010 to December 2010 – NS construction and re-configuration of
Airline Junction
46
Airline Junction
Evaluating the Economic Impacts of Expanded Truck-Rail
Intermodal Capacity in Northwest Ohio
Richard S. Martinko, P.E.
Director: Intermodal Transportation Institute &
University Transportation Center
47