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Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2001. Freight Facility Location Selection: A Guide for Public Officials. Washington, DC: The National Academies Press. doi: 10.17226/14594.
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Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2001. Freight Facility Location Selection: A Guide for Public Officials. Washington, DC: The National Academies Press. doi: 10.17226/14594.
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Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2001. Freight Facility Location Selection: A Guide for Public Officials. Washington, DC: The National Academies Press. doi: 10.17226/14594.
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Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2001. Freight Facility Location Selection: A Guide for Public Officials. Washington, DC: The National Academies Press. doi: 10.17226/14594.
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Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2001. Freight Facility Location Selection: A Guide for Public Officials. Washington, DC: The National Academies Press. doi: 10.17226/14594.
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Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2001. Freight Facility Location Selection: A Guide for Public Officials. Washington, DC: The National Academies Press. doi: 10.17226/14594.
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Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2001. Freight Facility Location Selection: A Guide for Public Officials. Washington, DC: The National Academies Press. doi: 10.17226/14594.
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Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2001. Freight Facility Location Selection: A Guide for Public Officials. Washington, DC: The National Academies Press. doi: 10.17226/14594.
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Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

TransporTaT ion research Board Washington, D.C. 2011 www.tRB.org N a t i o N a l c o o p e r a t i v e F r e i g h t r e s e a r c h p r o g r a m NcFrp RepoRt 13 Research sponsored by the Research and Innovative Technology Administration Subscriber Categories Economics • Environment • Freight transportation • Marine transportation Motor Carriers • Railroads • terminals and Facilities Freight Facility Location selection: a Guide for public officials Christopher W. Steele CWS ConSulting group, llC Newton, MA Daniel Hodge HDr EnginEEring, inC. Boston, MA Halcrow, Inc. Cambridge, MA Fitzgerald & Halliday, Inc. Hartford, CT Resource Systems Group, Inc. White River Junction, VT

naTionaL cooperaTive FreiGhT research proGram America’s freight transportation system makes critical contributions to the nation’s economy, security, and quality of life. The freight transportation system in the United States is a complex, decentralized, and dynamic network of private and public entities, involving all modes of transportation—trucking, rail, waterways, air, and pipelines. In recent years, the demand for freight transportation service has been increasing fueled by growth in international trade; however, bottlenecks or congestion points in the system are exposing the inadequacies of current infrastructure and operations to meet the growing demand for freight. Strategic operational and investment decisions by governments at all levels will be necessary to maintain freight system performance, and will in turn require sound technical guidance based on research. The National Cooperative Freight Research Program (NCFRP) is a cooperative research program sponsored by the Research and Innovative Technology Administration (RITA) under Grant No. DTOS59-06-G-00039 and administered by the Transportation Research Board (TRB). The program was authorized in 2005 with the passage of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU). On September 6, 2006, a contract to begin work was executed between RITA and The National Academies. The NCFRP will carry out applied research on problems facing the freight industry that are not being adequately addressed by existing research programs. Program guidance is provided by an Oversight Committee comprised of a representative cross section of freight stakeholders appointed by the National Research Council of The National Academies. The NCFRP Oversight Committee meets annually to formulate the research program by identifying the highest priority projects and defining funding levels and expected products. Research problem statements recommending research needs for consideration by the Oversight Committee are solicited annually, but may be submitted to TRB at any time. Each selected project is assigned to a panel, appointed by TRB, which provides technical guidance and counsel throughout the life of the project. Heavy emphasis is placed on including members representing the intended users of the research products. The NCFRP will produce a series of research reports and other products such as guidebooks for practitioners. Primary emphasis will be placed on disseminating NCFRP results to the intended end-users of the research: freight shippers and carriers, service providers, suppliers, and public officials. ncFrp reporT 13 Project NCFRP-23 ISSN 1947-5659 ISBN 978-0-309-21354-7 Library of Congress Control Number 2011937874 © 2011 National Academy of Sciences. All rights reserved. copYriGhT inFormaTion Authors herein are responsible for the authenticity of their materials and for obtaining written permissions from publishers or persons who own the copyright to any previously published or copyrighted material used herein. Cooperative Research Programs (CRP) grants permission to reproduce material in this publication for classroom and not-for-profit purposes. Permission is given with the understanding that none of the material will be used to imply TRB, AASHTO, FAA, FHWA, FMCSA, FTA, RITA, or PHMSA endorsement of a particular product, method, or practice. It is expected that those reproducing the material in this document for educational and not-for-profit uses will give appropriate acknowledgment of the source of any reprinted or reproduced material. For other uses of the material, request permission from CRP. noTice The project that is the subject of this report was a part of the National Cooperative Freight Research Program, conducted by the Transportation Research Board with the approval of the Governing Board of the National Research Council. The members of the technical panel selected to monitor this project and to review this report were chosen for their special competencies and with regard for appropriate balance. The report was reviewed by the technical panel and accepted for publication according to procedures established and overseen by the Transportation Research Board and approved by the Governing Board of the National Research Council. The opinions and conclusions expressed or implied in this report are those of the researchers who performed the research and are not necessarily those of the Transportation Research Board, the National Research Council, or the program sponsors. The Transportation Research Board of the National Academies, the National Research Council, and the sponsors of the National Cooperative Freight Research Program do not endorse products or manufacturers. Trade or manufacturers’ names appear herein solely because they are considered essential to the object of the report. Published reports of the naTionaL cooperaTive FreiGhT research proGram are available from: Transportation Research Board Business Office 500 Fifth Street, NW Washington, DC 20001 and can be ordered through the Internet at: http://www.national-academies.org/trb/bookstore Printed in the United States of America

The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. On the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Ralph J. Cicerone is president of the National Academy of Sciences. The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. Charles M. Vest is president of the National Academy of Engineering. The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, on its own initiative, to identify issues of medical care, research, and education. Dr. Harvey V. Fineberg is president of the Institute of Medicine. The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy’s purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Ralph J. Cicerone and Dr. Charles M. Vest are chair and vice chair, respectively, of the National Research Council. The Transportation Research Board is one of six major divisions of the National Research Council. The mission of the Transporta- tion Research Board is to provide leadership in transportation innovation and progress through research and information exchange, conducted within a setting that is objective, interdisciplinary, and multimodal. The Board’s varied activities annually engage about 7,000 engineers, scientists, and other transportation researchers and practitioners from the public and private sectors and academia, all of whom contribute their expertise in the public interest. The program is supported by state transportation departments, federal agencies including the component administrations of the U.S. Department of Transportation, and other organizations and individu- als interested in the development of transportation. www.TRB.org www.national-academies.org

crp sTaFF For ncFrp reporT 13 Christopher W. Jenks, Director, Cooperative Research Programs Crawford F. Jencks, Deputy Director, Cooperative Research Programs William C. Rogers, Senior Program Officer Charlotte Thomas, Senior Program Assistant Eileen P. Delaney, Director of Publications Scott E. Hitchcock, Editor ncFrp proJecT 23 paneL Freight Research projects A. Ray Chamberlain, Fort Collins, CO (Chair) Vann Cunningham, BNSF Railway Company, Fort Worth, TX Anne V. Goodchild, University of Washington, Seattle, WA Arthur Goodwin, Alameda Corridor Transportation Authority, Carson, CA John “Jock” Menzies, The Terminal Corporation, Baltimore, MD Jennifer L. Moczygemba, Texas DOT, Austin, TX John C. Morris, Cushman and Wakefield of Illinois, Inc., Rosemont, IL Roberta E. Weisbrod, Sustainable Ports, Brooklyn, NY Edward L. Strocko, FHWA Liaison Ann Purdue, TRB Liaison c o o p e r a t i v e r e s e a r c h p r o g r a m s

NCFRP Report 13: Freight Facility Location Selection: A Guide for Public Officials describes the key criteria that the private sector considers when making decisions on where to build new logistics facilities. The location of freight facilities can have both positive and negative economic and social effects on local communities, regions, and states. By providing insight on location decisions for freight facilities, and suggesting best practices for transportation, land use, economic development, and regional partnerships, public sector agencies can ben- efit from a fuller understanding of the dynamics of freight movement and the factors affect- ing private sector location decisions. With this insight, public sector agencies may success- fully plan for, attract, locate, and partner with freight-related activities in their jurisdictions. Public officials at the state and local levels are frequently called on to consider the siting of freight intermodal terminals, inland ports, and warehouses and distribution centers. Decisions to pursue these facilities as economic development generators—as a supporting function for current and future businesses or in response to outside proposals—have a greater potential for success when the public sector understands the private sector financial and transportation drivers. A limited understanding of these critical site-selection drivers can lead public officials to expend time and resources on flawed strategies to attract facilities and react incorrectly to facility proposals. For instance, they may not understand the differ- ences between international and domestic freight markets in the supply chain, the various functions they provide, or their respective support requirements. This can ultimately lead to inefficient transportation systems and failed economic development strategies. To for- mulate effective economic development strategies and react appropriately to proposals for the development of public or private freight facilities, public sector decision makers should have the benefit of a better understanding of these drivers and impacts. Under NCFRP Project 23, CWS Consulting Group, with the assistance of HDR Engineer- ing, Halcrow, Resource Systems Group, and Fitzgerald & Halliday, was asked to develop a guide to (1) inform public sector freight policy and decision makers about the key criteria that the private sector considers when determining where to locate new freight facilities, (2) inform the public sector about the complexity of the various facility types and the role they play in goods movement and supply chain management, and (3) enhance the potential for successful projects. A final report that provides background material used in the develop- ment of this Guide has been published as NCFRP Web-Only Document 1: Background Research Material for Freight Facility Location Selection: A Guide for Public Officials (NCFRP Report 13), available at http://www.trb.org/Main/Blurbs/165743.aspx F o r e W o r D By William C. Rogers staff officer transportation Research Board

Freight Facility Location Selection: A Guide for Public Officials vii Table of Contents Preface ix Chapter 1: Introduction and Background 1 Whatisthepurposeofthisguide? 1 Whoshouldusethisguide? 3 Howtousethisguide 4 Whatdowemeanbyfreightfacilities? 5 Keystofreightfacilitydevelopmentsuccess 10 Chapter 2: Evaluating Freight Facility Impacts and Benefits 11 Economiceffects 13 Transportationeffects 14 Otherpublicsectorcosts 16 Chapter 3: The Critical Roles of Groundwork and Collaboration 17 Layingthegroundwork 19 Publicsectorassistanceandincentives 22 Bestpracticesforthepublicsector 25 Chapter 4: How the Location Selection Process Works 29 Siteselection:thebigpicture 30 Stagesofsiteselection 31 Planningandstrategy 32 Networkmodelingandanalysis 34 Locationscreening 35 Fieldandsiteanalysis 36 Costmodeling 37 Incentives,negotiations,andfinalselection 38 Chapter 5: How Candidate Sites Are Evaluated 39 Abilitytoaccesskeymarketsorcustomers 40 Interactionwithtransportationnetworks 43 Laborandworkforce 48 Totalcostenvironment 49

Freight Facility Location Selection: A Guide for Public Officialsviii Availabilityandcostofsuitablefacilities 50 Utilities 52 Permittingandregulation 52 Taxenvironment 52 Publicsectorassistanceandincentives 53 Climateandnaturalhazards 53 Weighingsiteselectionfactors 53 Chapter 6: The Changing Landscape (Complicating Factors) 55 Changingroleofthefreightfacility 55 Changesinglobalsourcing 56 Fuelcostsandenvironmentalfactors 58 Organizationalfactorsandcomprehensiveness 60 Computermodeluseandsophistication 60 Transportationnetworkcongestion 61 Competitionwithothertypesofdevelopment 62 Appendix A: List of private sector interviewees 63 Appendix B: Glossary of terms 64

Freight Facility Location Selection: A Guide for Public Officials ix Preface Thisguideforpublicsectorofficialsismadepossiblebyfunding fromtheNationalCooperativeFreightResearchProgram(NCFRP) oftheTransportationResearchBoard.Theguideisacompanion to, and results from, research contained in the final report for NCFRP Project 23: “Economic and Transportation Drivers for SitingFreight IntermodalandWarehouseDistributionFacilities,” publishedasNCFRP Web-Only Document 1(http://www.trb.org/ Main/Blurbs/165743.aspx). Theobjectiveofthisresearchistodevelopaguidethat: 1. informspublicsectorplannersanddecisionmakersabout the key criteria that the private sector considers when sitinglogisticsfacilities, 2. informs the public sector about the complexity of the various facility types and the role they play in goods movementandsupplychainmanagement,and 3. enhancesthepotentialforsuccessfulprojects. Both the technical reportand thisguideweredevelopedbya projectteamconsistingof: • CWSConsultingGroup,LLC • HDREngineering,Inc. • Halcrow,Inc. • ResourceSystemsGroup,Inc. • Fitzgerald&Halliday,Inc. Special thanks to CWS Consulting Group, LLC, Halcrow, Inc., and Fitzgerald&Halliday,Inc.forphotographsandgraphics.

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TRB’s National Freight Cooperative Research Program (NFCRP) Report 13: Freight Facility Location Selection: A Guide for Public Officials describes the key criteria that the private sector considers when making decisions on where to build new logistics facilities.

A final report that provides background material used in the development of NFCRP Report 13 has been published as NCFRP Web-Only Document 1: Background Research Material for Freight Facility Location Selection: A Guide for Public Officials (NCFRP Report 13)

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