Background Research Material for Freight Facility Location Selection: A Guide for Public Officials (NCFRP Report 13) (2011)

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Table of Contents Introduction .................................................................................................................................................................... 1 1.1 Background ................................................................................................................................................... 1 1.2 Purpose .......................................................................................................................................................... 1 1.3 Approach ....................................................................................................................................................... 2 1.4 Organization ................................................................................................................................................. 2 Literature Review............................................................................................................................................................ 4 2.1 Overview ....................................................................................................................................................... 4 2.2 Introduction to Site Selection .................................................................................................................... 5 2.3 Freight and Logistics Trends ...................................................................................................................... 6 2.4 Corporate Location Trends for Freight-Intensive Businesses ............................................................ 10 2.5 Economic Development Implications ................................................................................................... 11 2.6 Summary ...................................................................................................................................................... 15 2.7 References ................................................................................................................................................... 16 Survey of Public and Private Perspectives ............................................................................................................... 19 3.1 Overview and Key Findings ..................................................................................................................... 19 3.2 Methodology ............................................................................................................................................... 19 3.3 Public Sector Responses ........................................................................................................................... 20 3.4 Private Sector Responses .......................................................................................................................... 23 3.5 Conclusion .................................................................................................................................................. 25 Freight Logistics Facility Types .................................................................................................................................. 27 4.1 Overview ..................................................................................................................................................... 27 4.2 Distribution Centers (DC) ........................................................................................................................ 27 4.3 Port ............................................................................................................................................................... 27 4.4 Intermodal Terminals ................................................................................................................................ 28 4.5 Bulk or Transload Terminal ..................................................................................................................... 28 4.6 Integrated Logistics Center (ILC)............................................................................................................ 29 4.7 Hub Terminal ............................................................................................................................................. 29 4.8 City Terminal .............................................................................................................................................. 29 4.9 Facility Type and Siting Decisions .......................................................................................................... 30 The Location Selection Process ................................................................................................................................. 32 5.1 Overview ..................................................................................................................................................... 32 5.2 Planning and Strategy ................................................................................................................................ 33

5.3 Network Modeling ..................................................................................................................................... 35 5.4 Location Screening .................................................................................................................................... 37 5.5 Field and Site Analysis ............................................................................................................................... 37 5.6 Cost Modeling ............................................................................................................................................ 38 5.7 Incentives Negotiations ............................................................................................................................ 39 5.8 Final Selection ............................................................................................................................................. 40 Key Criteria and Data Requirements for Facility Location Decisions ................................................................ 41 6.1 Overview ..................................................................................................................................................... 41 6.2 Ability to Access Key Markets or Customers ........................................................................................ 41 6.3 Interaction with Transportation Network ............................................................................................. 42 6.4 Labor and Workforce ................................................................................................................................ 44 6.5 Total Cost Environment ........................................................................................................................... 45 6.6 Availability and Cost of Suitable Facilities ............................................................................................. 46 6.7 Utilities ......................................................................................................................................................... 47 6.8 Permitting and Regulation ........................................................................................................................ 47 6.9 Tax Environment ....................................................................................................................................... 48 6.10 Public Sector Assistance and Incentives ................................................................................................ 48 6.11 Climate and Natural Hazards ................................................................................................................... 49 Current Dynamics Impacting Facility Location Decisions.................................................................................... 52 7.1 Changing Role of the Freight Facility ..................................................................................................... 52 7.2 Organizational Factors and Comprehensiveness .................................................................................. 52 7.3 Computer Model Use and Sophistication .............................................................................................. 53 7.4 Changes in Global Sourcing ..................................................................................................................... 53 7.5 Fuel Costs and Environmental Factors .................................................................................................. 54 7.6 Network Congestion ................................................................................................................................. 55 7.7 Competition with Other Development Types ...................................................................................... 55 Case Studies of Freight Logistics Facilities .............................................................................................................. 56 Part 1: Framework for Assessing the Economic and Transportation Impacts of Freight Facilities ............. 56 8.1 Transportation Impacts............................................................................................................................. 57 8.2 Economic Impacts ..................................................................................................................................... 59 8.3 Costs ............................................................................................................................................................. 61 Part 2: Introduction to the Case Studies ................................................................................................................. 61 8.4 Virginia Inland Port Case Study .............................................................................................................. 62 8.5 Rickenbacker Intermodal Rail Facility – Columbus, Ohio.................................................................. 68

8.6 Savage Safe Handling Case Study ............................................................................................................ 73 8.7 Family Dollar Distribution Center – Marianna, Florida ...................................................................... 78 8.8 Murphy Warehouses Case Study ............................................................................................................. 83 8.9 AllianceTexas Global Logistics Hub – Fort Worth, Texas ................................................................. 87 8.10 Old Dominion Freight Line, Inc. – Morristown, Tennessee .............................................................. 92 8.11 Summary of Case Study Findings ............................................................................................................ 96 The Critical Roles of Groundwork and Collaboration ........................................................................................ 103 9.1 Laying the Groundwork .......................................................................................................................... 104 9.2 Public Sector Assistance and Incentives .............................................................................................. 105 NCFRP 23 – Glossary of Terms ............................................................................................................................. 107 Appendix A: Public and Private Sector Data Collection Instruments (DCI) ................................................... 113 Questionnaire to Evaluate Current Public Understanding ............................................................................. 113 Questionnaire to Evaluate Current Private Understanding ............................................................................ 116 Appendix B: List of Interviews ............................................................................................................................... 119