GNC Coalition Update. Washington Public Ports Association Trade and Transportation Committee November 18, 2015

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1 GNC Coalition Update SWOT Analysis of the Great Northern Corridor 11/18/2015 Washington Public Ports Association Trade and Transportation Committee November 18, 2015

2 PHASE 1 OVERVIEW

3 What is the Great Northern Corridor? The corridor area is defined as all counties within 20 miles of the GNC.

4 Infrastructure & Operations Assessment The Great Northern Corridor is.. 3,331 railroad mainline route miles; 38 regional and shortline railways; 9 Interstate Highways, 11 U.S. highways, and many key state highways; 15 ports (deep water, lake, river and inland); Intermodal facilities, border facilities, and; 2,322 road/rail at-grade crossings

5 GNC Website Interactive website for public and GNC coalition members.

6 Commodity Flow Mode Share Truck is the dominant mode in tonnage. Rail is dominant in ton miles due to length of haul. Source: 2012 TRANSEARCH Data provided by BNSF The GNC provides significant public benefits by reducing truck traffic on the nation s highways and in the nation s metropolitan areas.

7 Commodity Flow - Mix Source: 2012 TRANSEARCH Data provided by BNSF Bulk commodities lead corridor traffic

8 Commodity Forecasts Rail Forecast Truck Forecast 2030 Moderate Growth 2030 High Growth Annual Growth Annual Commodity Group 2030 Units Rate 2030 Units Growth Rate Containers 8.3 million TEU* 4.1% 12.3 TEU 6.1% Breakbulk/Neo-bulk 10.5 million tons 1.2% 12.7 million tons 2.2% Grain & Related 39.1 million tons 0.7% 53.3 million tons 2.3% Products Dry Bulk 97.1 million tons 6.8% million tons 9.3% Liquid Bulk 42.4 million tons 0.2% 51.6 million tons 1.2% Port Forecast

9 Scenario Planning Workshop Hosted by the Port of Vancouver USA May 13, 2014

10 Strengths / Weaknesses Strengths End-to-end market reach and connectivity Large, varied work force Port connectivity Natural resources (ag, ore, energy) Diversity: urban & rural Strong base transportation infrastructure High value technology capital in mega-regions Technology education centers corridor-wide Weaknesses Land use constraints near ports North-south connections Volatility and changing trends in energy markets Limited route redundancy in some areas

11 Opportunities / Threats Opportunities Higher capacity/efficiency via new or renovated infrastructure Increase safety, efficiency, and community relations through improved rail crossings Short line connections Energy product growth LNG/CNG for even cleaner rail Technology as a means of increased safety and efficiency Public outreach/education to increase public awareness about Corridor links Threats Environmental changes from potential climate change and natural disasters Public perceptions of railroad safety and of resource extraction industries Work force development, training, and availability Global supply chain shifts and how they might affect Corridor demand Social licensing requirements

12 Economic Impact - States Corridor Impact on GNC State Economies (2012$) Freight Transportation Dependent GSP GNC Freight Transportation Dependent Component Percent of Freight Dependent GSP Percent of Total GSP State Total GSP Idaho $58,230 $24,708 $2, % 4.9% Illinois $704,137 $258,726 $163, % 23.2% Minnesota $298,273 $117,235 $92, % 31.0% Montana $42,139 $17,591 $3, % 9.1% North Dakota $49,509 $28,133 $20, % 41.2% Oregon $210,243 $102,916 $67, % 32.0% Washington $390,918 $139,808 $136, % 35.0% Wisconsin $272,086 $111,987 $10, % 3.9% $2,025,535 $801,104 $497, % 24.6% All GNC States The GNC Corridor plays a significant role in state economies!

13 Economic Impact - National Nationwide Economic Impact of GNC Rail Service (2012$) 2012 Impacts Employment (job years) Labor Income ($millions) Total Value Added ($millions) Output ($millions) 86,992 $1,532.4 $2,325.8 $3, Impacts 203,897 $3,591.8 $5,451.4 $9,327,409 The GNC also creates jobs and stimulates the national economy

14 System Initiatives Project Type Category 1. Economic Development 2. Community Impact and Safety Improvements 3. First/Last Mile Improvements 4. Rail Capacity Enhancements 5. Policies and Initiatives Project Category Attributes a. Port terminal expansion/improvements b. Industrial park development/improvements a. At-grade crossing safety improvements b. Rail-highway grade separations c. Rail relocation project a. Intermodal connector improvements b. Roadway improvements, including interchange improvements, truck lanes, etc. c. Port access and connections a. Includes rail over rail grade separation and technology enhancements a. Supports the GNCC s stated policies and goals

15 System Initiatives Phase I Project List Summary Project Type ID IL MN MT ND OR WA WI Total Economic Development Community Impact/Safety First/Last Mile Improvements Rail Capacity Enhancements Total

16 Final Deliverables

17 PHASE 2

18 Phase 2: Work Plan Task 1: Coalition Sustainability / Business Model Task 2: GNC Website Enhancement Task 3: Stakeholder Participation / Supply Chains Task 4: Expanded SWOT: Border Freight Analysis Highway Freight Flow Analysis Programmatic Corridor Initiatives Threats Analysis Task 5: Planning Level Analysis & Project Identification Task 6: Finding and Recommendations

19 Coalition Business Model What should the coalition look like to remain sustainable? Organizational structure Operations Communications Promotions, media, marketing, etc. Education Programs Resource Management A subcommittee lead by James Thompson is guiding this effort and Ashley Helenberg is working with the group on website enhancements

20 Stakeholder Outreach Two primary elements to this task: Private and Public Private outreach entails conducting interviews to understand the role the corridor plays in supply chains Looking to build a contact database representing companies from key industries in each state member (and Canadian provinces) Public outreach ties back to the business model and making contact with local entities in the corridor MPO Regional development organizations Others A subcommittee lead by Chris Herman (WSDOT) and Megan Larsen (MDT) is guiding this effort

21 SWOT Analysis Phase 2 A deeper dive that has 4 subtasks: Border freight analysis What is moving between U.S. and Canada along the corridor? Highway Freight Flow Analysis An analysis of the role highways play in the multimodal system being conducted by ATRI Programmatic Corridor Initiatives Grade Crossing Safety and Mobility Corridor-wide Preliminary Environmental Planning Initiative Unified Corridor Investment Program Threats Analysis mitigation analysis A subcommittee lead by Lisa Hendricksen is guiding this effort

22 Programmatic Initiatives Initiatives: Long-term sustained efforts aimed at achieving particular goals that require planning in advance Grade Crossing Safety and Mobility Initiative A programmatic corridor approach to identify, prioritize, and fund grade crossing improvements such as closures, consolidations, and separations. Corridor-Wide Environmental Planning Initiative A strategy to develop a Corridor environmental planning strategy that would help expedite permitting for stakeholder projects along the Corridor. Unified Corridor Investment Program A structured, comprehensive funding strategy to fund GNC projects.

23 Planning Level Analysis/Project ID Refine and expand Phase 1 project list Review and refine evaluation criteria Identify and analyze priority projects A subcommittee lead by Collen Weatherford is guiding this effort

24 Thank You! Questions? Comments? Project Manager: Mark Berndt, Quetica, LLC Direct Phone: , ext 857

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