Freight Flow Analysis

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1 Freight Flow Analysis Presented to: Mid-America Regional Council and Kansas City SmartPort Prepared by: TranSystems July 30, 2009 EXPERIENCE Transportation

2 Overview The Kansas City Regional Freight Outlook (RFO) was prepared to sustain existing momentum and further expand the region s presence in transportation and logistics. The overall vision for the Kansas City RFO is to positively impact and accommodate the growth of freight transportation and logistics in the 18-county study area. The Mid-America Regional Council and Kansas City SmartPort initiated the Kansas City Regional Freight Outlook. The Kansas City RFO was developed in collaboration with the Kansas and Missouri Departments of Transportations. The overall study included a series of deliverables focused on identifying freight infrastructure needs and assessing Kansas City s regional transportation advantages, resulting in targeted strategies and messages for the region. The following list details each of the study deliverables: Freight Directory: Inventory of the region s 40 freight zones including modes, volumes, existing industries and presence of foreign trade zones Business Survey: Summary of 427 survey responses of businesses on freight topics important to the region Focus Group Summary: Major findings from five focus groups conducted with the general public, business and elected officials Freight Infrastructure Investment Plan: Focuses upon transportation infrastructure by freight mode and provides a set of transportation priorities for the region. Regional Freight Assessment: A comparative of assessment of Kansas City against other cities in the U.S. in terms of freight activities and site selection characteristics. Freight Flow Analysis: A summary of the volume and value of freight flows in, out and through Kansas City by truck, rail, air and barge. Freight and the Environment in Kansas City: A brief white paper on environmental topics related to freight and the region. Using the data and research from each element, a series of findings are outlined that help inform the Strategic Plan development. This Strategic Plan draws on the data and research completed as part of the overall Kansas City RFO elements related to infrastructure, freight flows and economics to create objectives, strategies, and tactics that support the regional vision. The freight Strategic Plan was created to help the region remain a vital national freight transportation hub attracting freight growth. Finally, the Kansas City RFO Summary is a culmination of all the work completed on each individual element. The summary provides an overview of the study effort, information on infrastructure and freight flows, as well as, a summary of the surveys and comparative cities analysis. Key recommendations and critical actions are provided to narrow the focus on the near term and help to initiate and maintain the regional vision to positively impact and accommodate the growth of freight transportation and logistics in the 18-county study area. Kansas City Regional Freight Outlook

3 Table of Contents Introduction... 1 Data Sources... 1 Findings... 3 Total Freight... 3 Regional Truck Freight... 4 Regional Rail Freight... 5 Regional Air Freight... 6 Regional Water Freight... 6 Forecast... 7 Strategic Implications... 8 Truck Freight Total Truck Freight Higher Value Commodities Domestic Truck Modes Domestic Inbound Domestic Outbound Domestic Freight Lanes Domestic Through Intra Region Cargo Canada Cross-Border Mexico Cross-Border Rail Freight Total Rail Freight Higher Value Commodities Domestic Rail Modes Domestic Inbound Domestic Outbound Domestic Intra-Region Cargo Domestic Freight Lanes Canada Cross-Border Mexico Cross-Border Air Freight Water Freight Shipper Supply Chain Trends Use of Trucking Kansas City Regional Freight Outlook Page i

4 Use of Rail Transloading of International Cargo Environmental Impacts Diversification of Ports Economic and Population Trends U.S. Economic Trends U.S. International Container Trade Trends Regional Economic Trends Regional Population Trends Free Trade Agreements Projected Freight Projected Domestic Truck Freight Projected Cross-Border Truck Freight Projected Domestic Rail Freight Projected Cross-Border Rail Freight Projected Intermodal Rail Freight and Intermodal Yard Capacity Appendix A: Imports and Exports by Truck Appendix B: Semi-Trailers Returned Empty Appendix C: Estimate of Through Rail Traffic Appendix D: Waybill Rail Data Kansas City Regional Freight Outlook Page ii

5 Introduction The objectives of this Freight Flow Analysis for the Kansas City Regional Freight Outlook (KC RFO) are to review and summarize the freight flows in the study region, with an emphasis on truck and rail freight flows, and to provide a forecast of regional freight flows. In order to accomplish these objectives, profiles of freight flows by transport mode (road, rail, air and water), commodity type, and origin/destination were prepared and analyzed. This base year data combined with important freight industry trends that may influence regional freight flows were used to develop forecasts. Finally, a forecast of freight flows in 2027, with an interim forecast for 2017, was prepared. The study area for the analysis includes the 18-county study area used for the overall KC RFO. However, some data sets do not allow for data at this level so the Kansas City business economic area (BEA) 1 was used. Data Sources The project team used several databases to create a profile of freight flows in, out and through the study region, and as input to the forecasting model. Global Insight s Transearch Database was used as the primary source for the profile of freight flows. The database provides statistics on U.S. freight flows at the national, state, business economic area (BEA), and county level. The main parameters of the data extracts used in this study are provided in Table 1. Freight moving by truck is available at the county level thus allowing for a more granular analysis of regional freight movements; rail data is available at the BEA level. Table 1: Profile of Transearch Data Extract Counties / BEA Origins and Destinations Modes Unit of Measure Commodity Code Buchanan, MO Clinton, MO Livingston, MO Platte, MO Clay, MO Ray, MO Jackson, MO Lafayette, MO Cass, MO Johnson, MO Atchison, KS Shawnee, KS Leavenworth, KS Wyandotte, KS Douglas, KS Johnson, KS Franklin, KS Miami, KS BEA Canadian Province Mexican State Truckload Less-than-Truckload (LTL) Private Truck Air Water Truck Rail Tons Units STCC 2 & 4 Tons STCC 2 & 4 Kansas City BEA BEA Rail Tons Units STCC 2 & 4 Source: TranSystems derived from Global Insight Additional rail data was obtained by the study team from the Departments of Transportation in Kansas and Missouri. The project team received permission from the two state DOTs to use rail waybill data collected by the Surface 1 The Kansas City BEA is comprised of 46 counties in eastern Kansas and western Missouri. According to the Department of Commerce, BEAs define the relevant regional markets surrounding metropolitan or micropolitan statistical areas. They consist of one or more economic nodes - metropolitan or micropolitan statistical areas that serve as regional centers of economic activity - and the surrounding counties that are economically related to the nodes. Kansas City Regional Freight Outlook Page 1

6 Transportation Board (STB). The STB s Carload Waybill Sample is a stratified sample of carload waybills for terminated shipments by railroad carriers. The profile of international container trade, presented in this study as part of the industry trends component, is based on container trade statistics obtained from port authorities and PIERS (the Port Import Export Reporting Service associated with the Journal of Commerce), which collects statistics on import and export container movements through U.S. ports. The economic data used in the forecast of regional freight flows and to describe the outlook for the US economy were obtained from Moody s Economy.com, a provider of economic forecasts for the US and metropolitan statistical areas (MSA). Kansas City Regional Freight Outlook Page 2

7 Findings Total Freight The study region had total estimated freight of 291 million short tons 2 in 2007 (Figure 1) with an estimated total value of $826 billion (Figure 2). This estimate is qualified by the following: Data on domestic rail freight moving through the region is included in Appendix C. The exclusion of cross-border truck and rail freight moving through the region. The domestic truck and rail freight includes some international imports and exports as referenced in Appendix A. For example, a container is discharged at the Port of Los Angeles, is delivered to a warehouse near the port, and the cargo then trucked as a domestic move to the study region. Figure 1: Total Estimated Regional Freight in 2007, Tons 291 Million Short Tons Domestic Truck % Cross-Border Truck & Rail % Mexico Cross-Border Truck & Rail % Water % Air % Domestic Rail % Source: TranSystems derived from Global Insight Transearch Data Figure 2: Total Estimated Regional Freight in 2007, Value $826 Billion Canada Cross-Border Truck & Rail % Domestic Truck $ % Cross-Border Truck & Rail $ % Mexico Cross-Border Truck & Rail $ % Water $ % Air $ % Domestic Rail $ % Canada Cross-Border Truck & Rail $ % Source: TranSystems derived from Global Insight Transearch Data 2 A short ton is equal to 2,000 pounds. Kansas City Regional Freight Outlook Page 3

8 Regional Truck Freight The Kansas City region has a significant volume of truck freight driven by local industry, local distribution, regional distribution, movements through the region and international trade. In 2007, the study region had an estimated 214 million short tons of truck freight (domestic plus cross-border) with an estimated total value of $722 billion. Truck freight falls into the following directional flows: Domestic inbound to the region o 36.3 million short tons with an estimated value of $124.4 billion Domestic outbound from the region o 49.4 million short tons with an estimated value of $204.5 billion Domestic through the region (truck freight that passes through but does not stop in the region) o 78.9 million short tons with an estimated value of $256.5 billion Domestic inbound, outbound and through truck freight includes an unidentified amount of international imports and exports. For example, an import from Asia that enters a warehouse near the Port of Los Angeles and is then loaded into a domestic trailer for delivery to the study region. Intra-region cargo (between locations within the study region) o 47.9 million short tons with an estimated value of $129.7 billion Canada cross-border (inbound and outbound) o 1.0 million short tons with an estimated value of $4.5 billion o Canada cross-border truck freight has the second highest value per cargo ton of the different truck freight sectors Mexico cross-border (inbound and outbound) 3 o 0.3 million short tons with an estimated value of $2.4 billion o Mexico cross-border truck freight has the highest value per cargo ton of the different truck freight sectors Domestic truck freight includes two important higher value commodity sectors that are handled by the study region s warehouse and distribution facilities, and intermodal rail infrastructure. They are: Secondary Traffic Warehouse & DC 4 higher value products handled by warehouses and distribution centers (mainly consumer goods such as apparel, footwear, electronics and furniture). This sector accounts for 14.2 percent of total domestic truck tonnage and 43 percent of the total value of domestic truck cargo. Secondary Traffic Rail Intermodal Drayage containerized products moving by truck drayage to/from intermodal rail yards. This sector accounts for 4.3 percent of total domestic truck tonnage and 14 percent of total value of domestic truck cargo. 3 The cross-border data may understate the actual cross-border truck volumes due to the inclusion of some international cargo in the domestic freight data. Note that no data was available on cross-border truck flows that may pass through the region. 4 Secondary Traffic Warehouse and DC is a commodity group that covers the movement of products between facility origins such as warehouses, distribution centers (DC) and final destinations such as stores or manufacturing centers. Secondary Traffic Rail Intermodal Drayage is a commodity group that covers the movement of containerized products between intermodal rail yards and other facilities warehouses, manufacturing sites, etc. Kansas City Regional Freight Outlook Page 4

9 Regional Rail Freight The Kansas City region is one of the nation s leading rail hubs and handles a broad variety of rail freight. In 2007, the total estimated volume was 72.2 million short tons 5 of rail freight (domestic including coal plus cross-border) with an estimated value of $100 billion. 6 Rail freight falls into the following directional flows: Domestic inbound to the region o 15.0 million short tons with a total value of $49 billion. o This total excludes 40.5 million short tons of inbound coal with a total value of $1.5 billion, which was removed from the analysis in order to focus on relatively higher value commodities. Domestic outbound from the region o 15.1 million short tons with a total value of $47 billion Domestic inbound and outbound rail includes an unidentified amount of international imports and exports. For example, an import container from Asia that arrives at the Port of Los Angeles and is transported by intermodal rail to the study region. Intra-region o 0.1 million short tons with a total value of $0.04 billion Canada cross-border (inbound and outbound) o 1.5 million short tons with a total value of $2 billion Mexico cross-border (inbound and outbound) 7 o 0.5 million short tons with a total value of $0.3 billion Intermodal rail corridors are focused on coastal BEAs: The Los Angeles lane (which includes the ports of Los Angeles and Long Beach) accounts for 48 percent of total intermodal rail tonnage identified in the report. The major commodity originating from this BEA, accounting for 88 percent of eastbound tonnage, is high value Miscellaneous Mixed Shipments (mostly freight-all-kind (FAK) which tends to be international imports from the ports of Southern California). The major commodities destined for the Los Angeles BEA are Miscellaneous Mixed Shipments (45 percent of tons moving to this BEA) and Transportation Equipment (17 percent), as well as Food or Kindred Products (13 percent) and Farm Products (10 percent). Other important intermodal lanes are with the San Francisco (Oakland) BEA, the New York BEA and various Midwest locations. 5 Domestic rail freight quoted in this section is for the Kansas City BEA. 6 Regional Rail Freight including domestic inbound and outbound, intra-region, and cross-border totals were derived from Global Insight Transearch Data for the year Rail freight flowing through the region was derived from subset of the Surface Transportation Board s Waybill data that included rail traffic moving within and through the states of Kansas and Missouri for the year The through rail data is exclusive of the regional freight totals and is included in Appendix C. 7 The cross-border data may understate the actual cross-border rail volumes due to the inclusion of some international cargo in the domestic freight data. Note that no data was available on cross-border rail flows that may pass through the region. Kansas City Regional Freight Outlook Page 5

10 Major carload rail corridors are with inland locations: The major lanes handling carload rail traffic are with the Dallas, TX BEA, St. Louis, MO BEA and the Detroit, MI BEA. Higher value commodities moving by carload include Transportation Equipment (for example, motor vehicles, and vehicle parts and accessories). Regional Air Freight Air freight accounts for a small component of the overall freight universe, the sector involves the shipment of small volumes of higher value products. In 2007, the study region s total air freight amounted to 126,000 short tons with a total estimated value of $1.85 billion. The breakdown by direction was: Inbound air freight of 60,500 short tons with a total estimated value of $0.61 billion. Outbound air freight of 65,500 short tons with a total estimated value of $1.24 billion. The greater value of outbound freight reflects the shipment of higher value products, notably Miscellaneous Manufactured Products (jewelry, precious metal, etc.); this commodity group accounts for 16 percent of outbound tonnage and 58 percent of outbound value. Regional Water Freight The river system of the study region handled 4.9 million short tons of water freight in 2007 with an estimated total value of $0.6 billion. The breakdown by type of flow was: Inbound freight of 0.5 million short tons with an estimated total value of $0.17 billion. Outbound freight of 2.6 million short tons with an estimated total value of $0.21 billion. o Major outbound commodity groups were Nonmetallic Minerals, Waste or Scrap Materials, and Farm Products. Through freight of 1.2 million short tons (assumed to not touch river terminals in the study region) with an estimated total value of $0.22 billion. Intra-region freight of 0.5 million short tons with an estimated total value of $0.01 billion. Kansas City Regional Freight Outlook Page 6

11 Forecast Total regional rail and truck freight is projected to increase from 246 million short tons in 2007 to 349 million short tons in 2027, a 20-year compound annual growth rate (CAGR) of 1.8 percent (Table 2). The fastest growing freight flows over the 20-year time horizon will be the cross-border trades with Mexico and Canada, however domestic freight flows will remain dominant when measured by tonnage. There is downside risk to the near-term forecast due to national and global economic weakness. Table 2: Study Region Freight Flows by Direction and Mode, Million Short Tons Cargo Flow Description CAGR* Domestic Inbound Truck % Canada Inbound Truck % Mexico Inbound Truck % Inbound Truck % Domestic Inbound Rail 2, % Canada Inbound Rail % Mexico Inbound Rail % Inbound Rail % Total Inbound Tonnage % Domestic Outbound Truck % Canada Outbound Truck % Mexico Outbound Truck % Outbound Truck % Domestic Outbound Rail % Canada Outbound Rail % Mexico Outbound Rail % Outbound Rail % Total Outbound Tonnage % Intra-Region Truck % Intra-Region Rail % Total Intra-Region % Total Domestic Through % Total Tonnage % 1. Includes some international imports and exports. 2. Excludes 40.5 million short tons of inbound coal in Domestic rail data is for the Kansas City BEA. Source: TranSystems Forecasts; 2007 data derived from Global Insight Transearch Data. Kansas City Regional Freight Outlook Page 7

12 Higher value/processed commodities (for example, consumer products) are projected to increase their share of total tonnage over the 20-year forecast period. The incidence (measured by share of tonnage) of higher value/processed commodities will remain greatest in cross-border truck freight, notably inbound shipments from Mexico. Domestic rail freight will continue to have a large amount of higher value/processed commodities due to the intermodal rail corridors that converge on the Kansas City region, and which handle a large volume of higher value international imports and exports. Overall, the higher value/processed commodities are projected to account for 51 percent of total regional freight (truck and rail freight combined) in 2027 compared to an estimated 44 percent in Figure 3: Projected Share of Higher Value/Processed Commodities Higher Value Commoduities Share of Tons 70% 60% 50% 40% 30% 20% 10% 0% Domestic Truck Cross-Border Truck Domestic Rail Cross-Border Rail Source: TranSystems Strategic Implications The Kansas City region is one of the nation s leading transportation hubs with an established transportation infrastructure supporting freight moving by truck, rail, air and water in domestic and international trade lanes. The infrastructure encompasses highways, rail lines, rail yards, warehouse and distribution centers, and other facilities. In 2007, the study region handled an estimated 246 million short tons of truck and rail freight with an estimated total value of $821 billion. This estimate understates the total amount of freight due to the absence of data on several market sectors (rail freight and cross-border freight moving through the region). A large quantity of higher value/processed commodities is handled by the region s warehousing and distribution centers, intermodal rail yards and other facilities. The projected increase in freight over the next 20 years, with the higher value/processed commodities growing fastest, along with general industry trends suggest several strategic implications for the study region: A requirement to invest in the maintenance and expansion of the region s freight handling infrastructure to support long term growth of freight and to ensure the Kansas City region remains one of the nation s leading transportation hubs, attractive to shippers, service providers and investors. Failure to maintain freight infrastructure suited to projected growth would impede the competitiveness of the Kansas City region against other freight centers. Interest amongst many shippers to locate in close proximity to rail intermodal facilities with good access to a regional market should support growth of cargo traffic in the Kansas City region and support the importance of investment in the region s rail and highway infrastructure. Kansas City Regional Freight Outlook Page 8

13 Projected faster growth of higher-value/processed commodity sectors indicates that future investment should include the provision of facilities and services suited to these types of commodities. Leverage the study region s experienced and cost competitive labor force, and building costs to target these commodity sectors. Projected faster growth of some cross-border trades compared to domestic freight indicates that emphasis should be placed on the development of facilities, services, technologies and security to support international trade flows. Use Kansas City s infrastructure, labor supply and other factors to position Kansas City as a location for component assembly and light assembly in established markets like the automotive, aircraft and agricultural machinery manufacturing sectors based on near sourcing raw material and component parts from the industrial areas of Northern Mexico. Leverage the region s manufacturing history and base to transition into emerging green industries including components and finished products for green energy technologies wind power, solar, etc. Potential future modal shifts from truck to rail due to long term increases in energy costs, highway congestion and other factors. This would result in faster growth of regional rail freight than projected in this study and support investment in rail related infrastructure. Forecasting freight flows, like any type of forecast, is part science and art. Historic trends can be useful in assessing how data has changed over time, which in turn can be extrapolated to project future data. Forecasts are complicated by varying reporting elements including area boundary changes. The 1995 Intermodal Freight Strategies Study developed forecasts for the then seven-county MARC region. That forecast included low and high-growth scenarios for a 20 year period. A comparison to the current forecast is complicated by the area of the 18-county Regional Freight Outlook. However, one common element to review is rail intermodal traffic because the former and current intermodal facilities in essence serve the same area. The 1995 forecast for rail intermodal traffic based upon 1992 data point and as interpreted from trend line analysis was projected for 2007 to range between a low of 8.0 and a high of 10.2 million tons per year. The 2007 data indicates rail intermodal at 8.6 million tons which is straddling the lower and upper limits of the prior forecast. Future review of freight flows may wish to consider monitoring consistent elements that can be easily compared, such as rail intermodal traffic. Kansas City Regional Freight Outlook Page 9

14 Truck Freight Total Truck Freight The Kansas City region has a significant volume of truck freight driven by local industry, local distribution, regional distribution, movements through the region and international trade. In 2007, the study region had an estimated 214 million short tons of truck freight with an estimated total value of $722 billion. Truck freight falls into the following directional flows: Domestic inbound to the region Domestic outbound from the region Domestic through the region (truck freight that passes through but does not stop in the region) Intra-region cargo (between locations within the study region) Canada cross-border (inbound and outbound) Mexico cross-border (inbound and outbound) o The cross-border data may understate the actual cross-border truck volumes due to the inclusion of some international cargo in the domestic freight data. o No data was available on cross-border truck flows that may pass through the region. The distribution of truck freight by type of flow is shown in Figure 4 (short tons) and Figure 5 (value). The largest segment is domestic through freight with 37 percent of total tonnage and 36 percent of total value. This is followed by domestic outbound (23 percent and 28 percent), intra-region (22 percent and 18 percent) and domestic inbound (17 percent and 17 percent). Cross-border shipments with Canada and Mexico account for a small share of total truck freight 0.6 percent of tonnage and 1.0 percent of value. The international component of regional truck freight is understated because some import and export cargo is captured within the domestic freight flows. For example, an international import can arrive at the port of discharge or border crossing, enter a domestic distribution center, and then depart the distribution center as a domestic shipment to the study region. Figure 4: Distribution of Truck Freight by Type of Flow in 2007, Short Tons Mexico Cross-Border Canada Cross-Border Domestic Inbound* 214 million short tons Figure 5: Distribution of Truck Freight by Type of Flow in 2007, Value Mexico Cross-Border Canada Cross-Border Domestic Inbound* $722 Billion $2.4 $4.5 $124.4 Intra Region 47.9 Intra Region $129.7 Domestic Outbound* 49.4 Domestic Outbound* $204.5 Domestic Through* 78.9 Domestic Through $ Million Short Tons * Includes some cargo that is international imports and exports. Source: TranSystems derived from Global Insight Transearch Database $0 $100 $200 $300 Value $ Billion * Includes some cargo that is international imports and exports. Source: TranSystems derived from Global Insight Transearch Database Kansas City Regional Freight Outlook Page 10

15 Although small when measured by total tonnage or total value, the Canadian and Mexican freight flows involve a greater preponderance of higher value commodities. As shown in Figure 6, Mexico crossborder truck freight, notably inbound, has the highest value per short ton of all the truck freight segments. This higher value is driven by commodity groups such as Electrical Equipment, Machinery and Transportation Equipment that comprise a large share of the Mexican cross border trade. Similarly, Canadian cross-border truck freight also has higher value per ton than the domestic truck flows due to the presence of the higher value commodity groups. In the case of domestic truck flows, domestic outbound has the highest value per ton, which reflects factors such as regional distribution of higher value products (for example, inbound shipments of international imports by rail that are distributed by truck) and outbound shipments of products manufactured in the region. Further discussion of directional flows by commodity type is provided later in the report. Total truck freight generated an estimated 10.9 million truckloads 8 in 2007 (Figure 7), based on the application of assumed tons per truckload by commodity type to the base tonnage data. Truck freight moving through the study Figure 7: Distribution of Truck Freight by Type of Flow in 2007, Number of Truckloads Mexico Cross-Border Canada Cross-Border Domestic Inbound* Intra Region Domestic Outbound* Domestic Through* 10.9 million Truckloads Million Truckloads * Includes some cargo that is international imports and exports. Source: TranSystems derived from GI Transearch Database Figure 6: Truck Freight Value per Short Ton Mexico Cross-Border Outbound Mexico Cross-Border Inbound Canada Cross-Border Outbound Canada Cross-Border Inbound Domestic Inbound* Intra Region Domestic Outbound* Domestic Through* $0 $2,500 $5,000 $7,500 $10,000 Value $ per Short Ton * Includes some cargo that is international imports and exports. Source: TranSystems derived from GI Transearch Database region generated an estimated 4.0 million truckloads, domestic outbound 2.5 million truckloads, intra-region 2.5 million truckloads and domestic inbound 1.9 million truckloads. The larger number of domestic outbound loads compared to domestic inbound loads partly reflects the study area s regional distribution function, which generates outbound freight moves to other urban centers, including the conversion of inbound rail freight into outbound truck moves. Cross-border truck freight with Mexico generates a much smaller number of truckloads compared to the other freight flows. However, similar to the discussion above on value per ton, the average value per truckload is highest in the Mexican cross-border trade. At $103,000, the average value of a truckload of Mexican cross-border freight is more than 50 percent higher than the average value of a domestic truckload ($66,000). Canadian crossborder trade had an estimated average value per truckload of $64,000. A profile of total truck freight ranked by major commodity group based on tonnage is shown in Figure 8. The top ten commodity groups accounted for 87 percent of tonnage in The largest commodity group was Farm Products (17.3 percent share) and this commodity group includes grains, livestock, fruits and vegetables, and other agricultural products. Nonmetallic Minerals (17.1 percent) is largely made up of broken stone, gravel and sand. Secondary 8 From a transportation planning perspective, one truckload equals one loaded truck on the region s roadways. Kansas City Regional Freight Outlook Page 11

16 traffic related to warehouse and distribution center activities (14.2 percent share) is mainly consumer goods (apparel, footwear, consumer electronics, furniture, etc.) and includes a large volume of imports. Food or Kindred Products (12.7 percent share) includes a blend of intermediary products for further processing and final products. Examples are animal by-products, pet food, soybean oil or by-products, fresh, chilled or frozen meat and poultry, and canned fruits and vegetables. Secondary Traffic Rail Intermodal Drayage is driven by the region s intermodal rail hubs and had a 4.3 percent share. The largest sub-sectors of Chemicals or Allied Products (6.4 percent) are plastic material or synthetic fibers, miscellaneous agricultural chemicals, organic and inorganic chemicals, and fertilizers. Other major commodity groups are Clay, Concrete, Glass or Stone (4.8 percent), Petroleum or Coal Products (4.4 percent), Primary Metal Products (2.9 percent) and Fabricated Metal Products (2.7 percent). Figure 8: Total Truck Freight in 2007 by Top 10 Commodity Groups Based on Total Tons Other Commodity Groups Fabricated Metal Products Primary Metal Products Secondary - Rail IMX Drayage Petroleum Or Coal Products Clay, concrete, glass Or Stone Chemicals Or Allied Products Food Or Kindred Products Secondary - Warehouse & DC Nonmetallic Minerals Farm Products Million Short Tons Source: TranSystems derived from GI Transearch Database When the different elements of secondary traffic are combined together (warehouse and distribution, rail intermodal drayage and also a small amount of air freight drayage) the sector accounts for 18.5 percent of the region s truck tonnage. The sector s large share is driven by the Kansas City area s extensive freight handling infrastructure warehouses, distribution centers, rail intermodal yards, etc. and the area s function as a regional transportation hub and cargo distribution center. Figure 9: Total Truck Freight in 2007 by Top 10 Commodity Groups Based on Total Value Other Commodity Groups Misc Manufacturing Products Printed Matter Fabricated Metal Products Farm Products Chemicals Or Allied Products Electrical Equipment The top ten commodity profile alters when total truck freight is ranked by value (Figure 9). Four of the top commodities ranked by tonnage drop from the value list - Primary Metal Products, Clay, Concrete, Glass or Stone, Petroleum or Coal Products, and Nonmetallic Minerals. These are replaced by the following higher value commodity sectors Machinery, Electrical Equipment, Printed Matter, and Misc Manufacturing Products. Secondary traffic dominates the value profile, which Food Or Kindred Products reflects the higher value products (such as imported Machinery consumer products) moving through warehouse and Secondary - Rail IMX Drayage distribution centers, or handled by rail intermodal Secondary - Warehouse & DC drayage. Altogether secondary traffic (warehouse and Value, $ Billion distribution, rail intermodal drayage and a small of amount of air freight drayage) accounted for 54 percent of total Source: TranSystems derived from GI Transearch Database truck freight value. Secondary traffic tied to warehouse and distribution activities had a total estimated value of $310 billion in 2007, 43 percent of truck freight s total value (compared to a 14.2 percent share of tonnage). Rail intermodal drayage had a total value of $94 billion and a 13 percent share (compared to only 4.3 percent of tonnage). The top ten commodity groups ranked by total value generate considerable variation in estimated value per truckload. For example, Secondary Traffic Warehouse and Distribution has one of the highest average values per truckload of cargo (as much as $200,000), while Farm Products has a low average value per truckload (under Kansas City Regional Freight Outlook Page 12

17 $10,000). The other commodity groups with high average values per truckload are Machinery, Electrical Equipment, and Misc. Manufacturing Products. Higher Value Commodities In the discussion of total freight, reference was made to the incidence of higher value commodities in several freight flows. In this study, higher value not only refers to commodities with a relatively high value per ton, but also covers those commodities that are processed (for example, food products) as opposed to raw materials (for example, grain). The following is the assumed breakdown between higher value/processed and lower value commodities used in this report: Higher Value / Processed Apparel Or Related Products Misc Freight Shipments Electrical Equipment Misc Manufacturing Products Fabricated Metal Products Misc Mixed Shipments Food Or Kindred Products Ordnance Or Accessories Freight Forwarder Traffic Printed Matter Fresh Fish Or Marine Products Rubber Or Misc Plastics Furniture Or Fixtures Secondary Traffic Instrum, Photo Equipment, Optical Eq Shipper Association Traffic Leather Or Leather Products Small Packaged Freight Shipments Machinery Textile Mill Products Mail Or Contract Traffic Transportation Equipment Lower Value Chemicals Or Allied Products Clay, Concrete, Glass Or Stone Farm Products Lumber Or Wood Products Metallic Ores Nonmetallic Minerals Petroleum Or Coal Products Primary Metal Products Pulp, Paper Or Allied Products Shipping Containers Waste Flammable Liquids Waste Or Scrap Materials Higher value commodities account for an estimated 43 percent of total truck freight with considerable variation by freight flow (Figure 10). The cross-border truck freight with Mexico and Canada has the largest share of such commodities, which reflects the semi-finished and finished products moving in NAFTA trade. Domestic outbound freight has a greater share of higher value commodities than domestic inbound freight, which most likely reflects several factors. First, the movement of food and kindred products (or processed products) out of the study region, regional distribution from Kansas City, the conversion of higher value inbound intermodal rail tonnage into outbound truck freight for regional distribution, and the outbound shipment of manufactured goods from the region. Figure 10: Incidence of Higher Value/Processed Commodities in Truck Freight 80% Higher Value Commoduities Share of Truck Tons 70% 60% 50% 40% 30% 20% 10% 0% Domestic Domestic Intra-Region Inbound Truck Total Truck Freight Mexico Cross- Border Outbound Domestic Through Truck Domestic Outbound Truck Canada Cross-Border Inbound Canada Cross-Border Outbound Mexico Cross- Border Inbound Kansas City Regional Freight Outlook Page 13

18 Domestic Truck Modes Domestic truck freight falls into three broad transportation modes truckload, private fleet, and less-than-truckload (LTL). Private fleet involves freight handled by private in-house truck fleets, such as those operated by retailers, as opposed to commercial common carrier truckload and LTL services. LTL is a relatively specialist sector involving the transport of higher value and/or time sensitive and/or small volume freight. Table 3 shows the 2007 profile by mode: Truckload accounted for nearly two-thirds of total domestic truck tonnage and value. Private fleet is the next largest category with a 34 percent share of total domestic truck tonnage and 30 percent share of value. The private fleet share is higher in the inbound/outbound and intra-region segments. LTL service accounted 2.5 percent of total domestic truck tonnage and 4.9 percent of value. The greater value share reflects the higher value commodities that move via LTL service. Table 3: Domestic Truck Freight by Transport Type in 2007, Tonnage and Value Volume, Million Short Tons Truckload Private LTL 2007 Total Domestic Inbound* Domestic Outbound* Total Inbound & Outbound Domestic Through* Intra Region Total Domestic Truck Share of 2007 Total 63.5% 34.0% 2.5% 100% Value, $ Billion Truckload Private LTL 2007 Total Domestic Inbound* $79.6 $38.7 $6.1 $124.4 Domestic Outbound* $105.9 $90.9 $7.6 $204.5 Total Inbound & Outbound $185.5 $129.6 $13.7 $328.9 Domestic Through* $173.3 $61.8 $21.4 $256.5 Intra Region $105.1 $24.2 $0.3 $129.7 Total Domestic Truck $463.9 $215.7 $35.4 $715.1 Share of 2007 Total 64.9% 30.2% 4.9% 100% * Includes cargo classified as international imports and exports. Kansas City Regional Freight Outlook Page 14

19 Domestic Inbound The study region handled 36.3 million short tons of domestic inbound truck cargo with a total value of $124 billion. The principal destination counties (Figure 11) are Jackson, Johnson, Shawnee, Douglas, Clay and Buchanan, which account for the region s main concentrations of population, industry and freight. Major origins (Figure 12) are the states of Kansas and Missouri, neighboring states in the Midwest, Texas and California. The coastal and border origins include international imports moving by truck. Figure 11: Inbound Truck Cargo by Destination in 2007 Figure 12: Inbound Truck Cargo by Origin in 2007 Kansas City Regional Freight Outlook Page 15

20 The top three commodity groups measured by tonnage (Figure 13) are Secondary Traffic Warehouse and Distribution, Farm Products and Nonmetallic Minerals. When ranked by value (Figure 14), the top ten commodity mix changes to include higher value groups including Secondary Traffic Rail Intermodal Drayage, Machinery and Electrical Equipment. The dominant commodity group measured by value is Secondary Traffic Warehouse and DC, which includes imported consumer products, and accounts for 47 percent of the value of domestic inbound truck freight. Figure 13: Domestic Inbound Truck Freight by Top 10 Commodity Groups Based on Tons, in Million Short Tons Figure 14: Domestic Inbound Truck Freight by Top 10 Commodity Group Based on Value, in 2007 $124.4 Billion Others 5.2 Others $17.3 Coal 0.9 Instrum, Photo Equipment, $2.9 Chemicals Or Allied Products 1.0 Chemicals Or Allied Products $3.0 Fabricated Metal Products 1.4 Primary Metal Products $3.5 Primary Metal Products 1.8 Printed Matter $3.8 Clay, concrete, glass Or Stone 2.0 Fabricated Metal Products $5.4 Food Or Kindred Products 4.0 Food Or Kindred Products $5.5 Petroleum Or Coal Products 4.1 Electrical Equipment $5.9 Nonmetallic Minerals 5.0 Secondary - Rail IMX Drayage $7.2 Farm Products 5.2 Machinery $11.4 Secondary - Warehouse & DC 5.7 Secondary - Warehouse & DC $ Million Short Tons Source: TranSystems derived from GI Transearch Database $0 $20 $40 $60 $80 Value, $ Billion Source: TranSystems derived from GI Transearch Database Kansas City Regional Freight Outlook Page 16

21 Domestic Outbound In 2007, the study region handled 49.4 million short tons of domestic outbound truck cargo with a total value of $204 billion. The principal origin counties (Figure 15) are Jackson, Johnson, Wyandotte, and Clay, which account for a significant share of the region s population, industry and freight infrastructure. The principal destinations (Figure 16) are neighboring states, the northeast, Texas and California. The coastal and border destinations include international exports moving by truck. Figure 15: Outbound Truck Cargo by Origin in 2007 Figure 16: Outbound Truck Cargo by Destination in 2007 Kansas City Regional Freight Outlook Page 17

22 The top commodity groups (Figure 17) are Secondary Traffic Warehouse and DC, Nonmetallic Minerals and Farm Products, and Food or Kindred Products. This ranking reflects the study region s position as a regional distribution hub and a center for agricultural production. Secondary traffic dominates domestic outbound truck traffic when measured by value (Figure 18). This is driven by the higher value products that comprise secondary traffic, such as outbound distribution of consumer products. Figure 17: Domestic Outbound Truck Freight by Top Ten Commodity Group Based on Tons, in Million Short Tons Figure 18: Domestic Outbound Truck Freight by Top Ten Commodity Group Based on Value, in 2007 $204.5 Billion Others 4.0 Others $12.0 Rubber Or Misc Plastics 0.9 Fabricated Metal Products $2.9 Pulp, paper Or Allied Products 0.9 Machinery $3.5 Fabricated Metal Products 0.9 Rubber Or Misc Plastics $3.5 Petroleum Or Coal Products 1.7 Farm Products $3.7 Clay, concrete, glass Or Stone 2.1 Secondary - Rail IMX Drayage $5.6 Chemicals Or Allied Products 3.3 Printed Matter $6.7 Food Or Kindred Products 6.3 Chemicals Or Allied Products $6.8 Farm Products 6.6 Food Or Kindred Products $7.5 Nonmetallic Minerals 8.7 Misc Manufacturing Products $9.7 Secondary - Warehouse & DC 14.0 Secondary - Warehouse & DC $ Million Short Tons.Source: TranSystems derived from GI Transearch Database $0 $50 $100 $150 $200 Value, $ Billion Source: TranSystems derived from GI Transearch Database Kansas City Regional Freight Outlook Page 18

23 Domestic Freight Lanes The largest domestic truck freight lanes are with neighboring states, which reflects the study region s function as a regional distribution and consolidation point for freight. In addition, the study region s large population and industrial base drive the shorter haul truck freight movements. As shown in Figure 19 and Table 4, the two largest lanes (based on total domestic inbound and outbound truck freight) are with the St. Louis BEA and Wichita BEA. Together they account for 23 percent of total domestic inbound and outbound truck tonnage. They both have more freight arriving from the study region than going to the study region. The next largest lanes are Topeka BEA (outside the study region) and Kansas City BEA (outside the study region). Several long distance lanes appear in the top 20 lanes Los Angeles BEA, New York BEA, Houston BEA, and Dallas BEA. Some of these lanes, for example the Los Angeles BEA include international imports and exports. Figure 19: Top Ten Domestic Truck Freight Lanes, Tons Business Economic Area (BEA) Grand Island, NE New York, NY Oklahoma, City, OK Los Angeles, CA Tulsa, OK Chicago, IL Kansas, City, MO Topeka, KS Wichita, KS St. Louis, MO Domestic Outbound Truck Freight to BEA Million Short Tons Domestic Inbound Truck Freight from BEA Figure 20: Top Ten Truck Freight Lanes, Estimated Number of Truckloads Business Economic Area (BEA) Grand Island, NE New York, NY Oklahoma, City, OK Los Angeles, CA Tulsa, OK Chicago, IL Kansas, City, MO Topeka, KS Wichita, KS St. Louis, MO 0 50, , , , , , ,000 Domestic Outbound Truckloads to BEA Number of Truckloads Domestic Inbound Truckloads from BEA Kansas City Regional Freight Outlook Page 19

24 Rank Million Short Tons O/D BBEA IB TL Table 4: Major Truck Freight Lanes IB LTL IB PVT IB Total OB TL OB LTL OB PVT OB Total 1 St. Louis, MO % 2 Wichita, KS % 3 Topeka, KS % 4 Kansas, City, MO % 5 Chicago, IL % 6 Tulsa, OK % 7 Los Angeles, CA % 8 Oklahoma, City, OK % 9 New York, NY % 10 Grand Island, NE % 11 Omaha, NE % 12 Springfield, MO % 13 Denver, CO % 14 Des Moines, IA % 15 Columbia, MO % 16 Houston, TX % 17 Dallas, TX % 18 Lincoln, NE % 19 Minneapolis, MN % 20 Joplin, MO % Total IB & OB Share Total Top 20 Lanes % Other Lanes % Total % Kansas City Regional Freight Outlook Page 20

25 Domestic Through The study region handled 78.9 million short tons of domestic through truck freight in 2007 with a total estimated value of $257 billion. As through traffic, this cargo does not stop in the region. The top three commodity groups measured by tonnage (Figure 21) were Food or Kindred Products, Farm Products, and Chemicals or Allied Products. Secondary Traffic Warehouse and Distribution was the fourth largest commodity group. When measured by value (Figure 22), Secondary Traffic Warehouse and Distribution was the largest commodity group accounting for 29 percent of total value. Figure 21: Domestic Through Truck Freight by Top Ten Commodity Group Based on Tons, in Million Short Tons Figure 22: Domestic Through Truck Freight by Top Ten Commodity Groups Based on Value, in 2007 $256.5 Billion Others 14.0 Others $43.9 Transportation Equipment 2.7 Printed Matter $8.9 Nonmetallic Minerals 3.0 Primary Metal Products $10.2 Petroleum Or Coal Products 3.2 Rubber Or Misc Plastics $10.9 Lumber Or Wood Products 3.2 Fabricated Metal Products $11.2 Fabricated Metal Products 3.3 Transportation Equipment $14.4 Primary Metal Products 3.3 Chemicals Or Allied Products $17.4 Secondary - Warehouse & DC 7.3 Food Or Kindred Products $17.8 Chemicals Or Allied Products 9.1 Electrical Equipment $20.6 Farm Products 13.8 Machinery $26.7 Food Or Kindred Products 15.9 Secondary - Warehouse & DC $ Million Short Tons Source: TranSystems derived from GI Transearch Database $0 $25 $50 $75 $100 Value, $ Billion Source: TranSystems derived from GI Transearch Database Kansas City Regional Freight Outlook Page 21

26 Intra Region Cargo The study region handled 47.9 million short tons of intra region truck freight in 2007, with a value of $130 billion. The freight is heavily concentrated when measured by tonnage (Figure 23) with five commodity groups accounting for 97 percent of freight tons. Secondary traffic tied to rail intermodal facilities and warehouse/dc activities account for nearly 25 percent of total tonnage. The higher value secondary traffic dominates the value profile of intra-region truck freight (Figure 24), accounting for 89 percent of total value. Figure 23: Intra Region Truck Freight by Top Ten Commodity Groups Based on Tons, in Million Short Tons Figure 24: Intra Region Truck Freight by Top Ten Commodity Groups Based on Value, in 2007 $129.7 Billion Others 0.2 Others $0.8 Secondary - Air Freight 0.1 Fabricated Metal Products $0.2 Chemicals Or Allied Products 0.1 Petroleum Or Coal Products $0.2 Primary Metal Products 0.1 Nonmetallic Minerals $0.2 Petroleum Or Coal Products 0.4 Printed Matter $0.2 Food Or Kindred Products 0.8 Clay, concrete, glass Or Stone $0.3 Secondary - Warehouse & DC 3.3 Secondary - Air Freight $0.6 Clay, concrete, glass Or Stone 3.7 Food Or Kindred Products $1.1 Secondary - Rail IMX Drayage 8.0 Farm Products $11.0 Farm Products 11.4 Secondary - Warehouse & DC $33.9 Nonmetallic Minerals 19.9 Secondary - Rail IMX Drayage $ Million Short Tons Source: TranSystems derived from GI Transearch Database $0 $20 $40 $60 $80 $100 $120 Value, $ Billion Source: TranSystems derived from GI Transearch Database Kansas City Regional Freight Outlook Page 22

27 Canada Cross-Border Total truck freight to and from Canada amounted to 988,000 short tons in 2007, with outbound tonnage (exports to Canada) exceeding inbound tonnage (imports from Canada) by a factor of four (Figure 25). The total truck tonnage generated an estimated 70,000 truckloads, 59,000 outbound and 12,000 inbound. The total estimated value of truck freight was $4.5 billion with outbound value of $3.9 billion much greater than the inbound value of $0.65 billion (Figure 26). Figure 25: Canada Truck Freight, Short Tons Truck Freight, Short Tons 900, , , , , , , , ,000 0 Inbound from Canada Outbound to Canada Source: TranSystems derived from GI Transearch Database Truck Freight, $ Billion Figure 26: Canada Truck Freight, Value $4.5 $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 Inbound from Canada Outbound to Canada Source: TranSystems derived from GI Transearch Database Inbound truck freight (imports from Canada) by commodity group is shown in Table 5. The largest commodity groups are Machinery, Transportation Equipment, and Food or Kindred Products, which account for 44 percent of total inbound tons, 51 percent of inbound truckloads and 69 percent of inbound value. Higher value Machinery accounts for 22 percent of tons and 46 percent of value, and includes sub-sectors such as construction machinery and equipment, industrial trucks, and industrial machinery. Transportation Equipment accounts for 12 percent of tonnage and 20 percent of value, and includes motor vehicles and other vehicles. Outbound truck freight (exports to Canada) by commodity group is shown in Table 6. The three largest commodity groups are Pulp, Paper or Allied Products, Transportation Equipment, and Machinery, which together account for 61 percent of tonnage, 65 percent of truckloads and 73 percent of value. The value per truckload in the outbound direction (exports to Canada) is an estimated $65,000, which exceeds the estimate of $55,500 for the inbound direction. This reflects the commodity mix described above; exports are weighted towards the higher value commodity groups.. Kansas City Regional Freight Outlook Page 23

28 Table 5: Inbound Truck Freight from Canada by Commodity Group Commodity Group Short Tons Truckloads Value $ Billion Share of Tons Machinery 35,488 3,262 $ % Transportation Equipment 20,120 1,779 $ % Food Or Kindred Products 16, $ % Farm Products 14, $ % Pulp, Paper Or Allied Products 13, $ % Rubber Or Misc Plastics 12,788 1,381 $ % Chemicals Or Allied Products 11, $ % Lumber Or Wood Products 10, $ % Nonmetallic Minerals 5, $ % Primary Metal Products 5, $ % Total Above 146,988 10,595 $ % Others 15,818 1,094 $ % Grand Total 162,807 11,689 $ % Table 6: Outbound Truck Freight to Canada by Commodity Group Commodity Group Short Tons Truckloads Value $ Billion Share of Tons Pulp, Paper Or Allied Products 197,893 10,634 $ % Transportation Equipment 167,728 14,830 $ % Machinery 135,797 12,481 $ % Food Or Kindred Products 85,781 4,790 $ % Electrical Equipment 57,836 4,473 $ % Chemicals Or Allied Products 45,299 2,673 $ % Clay, Concrete, Glass Or Stone 37,404 2,605 $ % Primary Metal Products 33,005 1,653 $ % Fabricated Metal Products 16,657 1,162 $ % Rubber Or Misc Plastics 7, $ % Total Above 785,010 56,122 $ % Others 40,009 2,678 $ % Grand Total 825,019 58,800 $ % The origin and destination patterns by Canadian province are illustrated in Figure 27 and Figure 28. Freight flows are heavily concentrated with the province of Ontario, which accounts for 70 percent of total truck tonnage and 77 percent of total value. Ontario s leading position as a trade partner (Ontario also accounts for the greatest share of rail tonnage) is driven by the concentration of population and manufacturing in this state, and supported by transportation connections between the study region and Ontario. Kansas City Regional Freight Outlook Page 24

29 Figure 27: Map of Destination Provinces in Canada for Outbound Truck Freight Kansas City Regional Freight Outlook Page 25

30 Figure 28: Map of Origin Provinces in Canada for Inbound Truck Freight Kansas City Regional Freight Outlook Page 26

31 The major Canadian truck lanes are shown in Figure 29 (tons) and Figure 30 (truckloads). The Ontario lane accounts for 70 percent of total tonnage and 69 percent of total truckloads. The largest identified location in Ontario is the Toronto metropolitan area (27 percent of total tonnage). Other trade partners are Manitoba (15 percent of total tons), Saskatchewan (5 percent) and British Columbia (4 percent), Quebec (3 percent) and Alberta (3 percent). Quebec is the second largest origin for import cargo and accounts for 14 percent of inbound truck tonnage. Figure 29: Canada Truck Freight Lanes, Tons Canadian Province Other New Foundland Nova Scotia New Brunswick Quebec Alberta British Columbia Saskatchewan Manitoba Ontario 0 100, , , , , ,000 Outbound Truck Tons to Canada Short Tons Inbound Truck Tons from Canada Figure 30: Canada Truck Freight Lanes, Number of Truckloads Canadian Province Other New Foundland Nova Scotia New Brunswick Quebec Alberta British Columbia Saskatchewan Manitoba Ontario 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 Number of Truckloads Outbound Truckloads to Canada Inbound Truckloads from Canada Kansas City Regional Freight Outlook Page 27

32 Mexico Cross-Border Total truck freight to and from Mexico amounted to 329,000 short tons in 2007, with outbound tonnage (exports to Mexico) exceeding inbound tonnage (imports from Mexico) by 28 percent (Figure 31). The total truck tonnage generated an estimated 23,000 truckloads, 12,000 outbound and 11,000 inbound. Inbound freight has higher estimated tons per truckload due to the types of commodities moving northbound from Mexico. The total estimated value of truck freight was $2.4 billion, with inbound freight exceeding the value of outbound freight (Figure 32) due to the higher value commodities imported from Mexico. Figure 31: Mexico Truck Freight, Short Tons Truck Freight, Short Tons 200, , , , , ,000 80,000 60,000 40,000 20,000 0 Inbound from Mexico Outbound to Mexico Source: TranSystems derived from GI Transearch Database Truck Freight, $ Billion Figure 32: Mexico Truck Freight, Value $1.4 $1.2 $1.0 $0.8 $0.6 $0.4 $0.2 $0.0 Inbound from Mexico Outbound to Mexico Source: TranSystems derived from GI Transearch Database Inbound truck freight (imports from Mexico) by commodity group is shown in Table 7. The two largest commodity groups are Machinery and Electrical Equipment, and together they account for 39 percent of tonnage, 43 percent of truckloads, and 73 percent of total inbound value. Outbound truck freight (exports to Mexico) by commodity group is shown in Table 8. The two largest commodity groups are Pulp, Paper or Allied Products and Chemicals or Allied Products, which together account for 39% of tonnage, 34 percent of truckloads, but due to their lower value only 10 percent of total outbound value. Important higher value commodities are Electrical Equipment and Machinery. The value per truckload in the inbound direction (imports from Mexico) is an estimated $113,000, which exceeds the estimate of $94,000 for the outbound direction. This reflects the commodity mix described above; imports from Mexico have a greater incidence of the higher value commodity groups. Kansas City Regional Freight Outlook Page 28

33 Table 7: Inbound Truck Freight from Mexico by Commodity Group Commodity Group Short Tons Truckloads Value $ Billion Share of Tons Machinery 27,917 2,566 $ % Electrical Equipment 27,674 2,140 $ % Clay, Concrete, Glass Or Stone 21,640 1,507 $ % Transportation Equipment 15,466 1,367 $ % Pulp, Paper Or Allied Products 12, $ % Fabricated Metal Products 10, $ % Primary Metal Products 6, $ % Printed Matter 5, $ % Rubber Or Misc Plastics 3, $ % Chemicals Or Allied Products 3, $ % Total Above 134,006 10,270 $ % Others 9, $ % Total 143,974 10,981 $ % Table 8: Outbound Truck Freight to Mexico by Commodity Group Commodity Group Short Tons Truckloads Value $ Billion Share of Tons Pulp, Paper Or Allied Products 40,274 2,164 $ % Chemicals Or Allied Products 32,516 1,918 $ % Food Or Kindred Products 30,753 1,717 $ % Electrical Equipment 22,297 1,724 $ % Machinery 10, $ % Primary Metal Products 9, $ % Transportation Equipment 7, $ % Rubber Or Misc Plastics 6, $ % Fabricated Metal Products 6, $ % Farm Products 4, $ % Total Above 171,864 11,061 $ % Others 12, $ % Grand Total 184,571 11,948 $ % The origin and destination patterns by Mexican state are illustrated in Figure 33 and Figure 34. Freight flows are concentrated with the border states of Nuevo Leon, Coahuila, Chihuahua, and Tamaulipas. These border states are primary locations for the Mexican manufacturing centers serving the NAFTA market. Other important states are Distrito Federal (around Mexico City) and Jalisco. Kansas City Regional Freight Outlook Page 29

34 Figure 33: Map of Destination States in Mexico for Outbound Truck Freight Kansas City Regional Freight Outlook Page 30

35 Figure 34: Map of Origin States in Mexico for Inbound Truck Freight Kansas City Regional Freight Outlook Page 31

36 The top ten Mexico cross-border truck lanes are shown in Figure 35 (tons) and Figure 36 (truckloads). Major lanes include the border states of Nuevo Leon, Chihuahua, Coahuila, and Tamaulipas. Aside from an unknown category, the largest three lanes are with the states of Nuevo Leon, Distrito Federal and Chihuahua, which together account for 46 percent of tonnage, 46 percent of truckloads and 55 percent of total value. In nearly every case, outbound (export) truck freight to Mexico exceeds inbound truck freight from Mexico. Figure 35: Top Ten Mexico Truck Freight Lanes, Tons Mexican State Guanajuato Puebla San Luis Potosi Jalisco Tamaulipas Coahuila Chihuahua Distrito Federal Nuevo Leon Mexico * 0 10,000 20,000 30,000 40,000 50,000 60,000 Short Tons Outbound Truck Tons to Mexico Inbound TruckTons from Mexico * Specific origin/destination not identified. Figure 36: Top Ten Mexico Truck Freight Lanes, Number of Truckloads Mexican State Guanajuato Puebla San Luis Potosi Jalisco Tamaulipas Coahuila Chihuahua Distrito Federal Nuevo Leon Mexico * ,000 1,500 2,000 2,500 3,000 3,500 Estimated Number of Truckloads Outbound Truckloads to Mexico Inbound Truckloads from Mexico * Specific origin/destination not identified. Kansas City Regional Freight Outlook Page 32

37 Rail Freight Total Rail Freight The Kansas City region is one of the nation s leading rail hubs and handles a broad variety of rail freight. In 2007, the total estimated volume was 72.2 million short tons 9 of rail freight with an estimated value of $100 billion. 10 Rail freight falls into the following directional flows: Domestic inbound to the region Domestic outbound from the region Intra-region Canada cross-border (inbound and outbound) Mexico cross-border (inbound and outbound) Total rail freight includes a large quantity of inbound coal shipments (40.5 million short tons). When coal is excluded net total rail freight is 30 million short tons with a total estimated value of $99 billion. The following discussion of rail freight excludes the inbound coal shipments in order to provide insight on the higher value commodities that drive regional warehousing infrastructure, and reflect industrial activity in the study region. The distribution of rail freight by type of flow is shown in Figure 37 (short tons) and Figure 38 (value). The dominant segments are domestic inbound and domestic outbound, each with 47 percent of the tonnage, and together they account for 98 percent of value. Canada cross-border rail freight accounts for 5 percent of tonnage and Mexico cross-border holds a 1 percent share of tonnage. The domestic rail freight includes international imports and exports; for example, an import container that is loaded onto rail at the Port of Los Angeles and railed to Kansas City. Figure 37: Distribution of Rail Freight by Type of Flow in 2007, Short Tons (Excluding Coal) Intra-Region Mexico Cross-Border Canada Cross-Border Domestic Inbound* Domestic Outbound* 32 million short tons Million Short Tons * Includes some cargo that is international imports and exports. Source: TranSystems derived from GI Transearch Database Figure 38: Distribution of Rail Freight by Type of Flow in 2007, Value (Excluding Coal) Intra-Region Mexico Cross-Border Canada Cross-Border Domestic Inbound* Domestic Outbound* $99 Billion $0.0 $0.3 $2.0 $49.2 $47.2 $0 $25 $50 $75 Value, $ Billion * Includes some cargo that is international imports and exports. Source: TranSystems derived from GI Transearch Database 9 Domestic rail freight quoted in this section is for the Kansas City BEA. 10 Total Rail Freight including domestic inbound and outbound, intra-region, and cross-border totals were derived from Global Insight Transearch Data for the year Rail freight flowing through the region was derived from a subset of the Surface Transportation Board s Waybill data that included rail traffic moving within and through the states of Kansas and Missouri for the year The through rail data is exclusive of the freight totals and is included in Appendix C. Kansas City Regional Freight Outlook Page 33

38 The domestic rail shipments have the highest value per ton of the different rail flows (Figure 39), which partly is driven by the inclusion of higher value import/export shipments in the domestic component, notably shipments by intermodal rail of consumer products from West Coast ports to the Kansas City region. Imports from Mexico also have a higher value per ton, which reflects the shipment of semi-finished and finished goods. By contrast, rail exports to Mexico have a significantly lower value per ton as they are largely agricultural products. Further discussion of directional flows by commodity type is provided later in the report. A profile of total rail freight ranked by major commodity group based on tonnage is shown in Figure 41. The top ten commodity groups accounted for 94 percent of tonnage in The largest commodity group is Transportation Equipment (17.9 percent share), which includes motor vehicles and motor vehicle parts and accessories. Farm Products (17.5 percent) is the second largest commodity group and includes grains and other farm products. The third largest commodity group is Miscellaneous Mixed Shipments (17.4 percent), which covers higher value mixed products (for example, imported consumer goods) moving by intermodal rail service. This commodity group is equivalent in terms of characteristics (higher value, consumer products, includes imports, etc.) as the Secondary Traffic category discussed under truck freight. Other important commodity groups are Food or Kindred Products (15.2 percent) and Chemicals or Allied Products (10.6 percent). Figure 39: Rail Freight Value per Short Ton Mexico Cross-Border Outbound Mexico Cross-Border Inbound Canada Cross-Border Outbound Canada Cross-Border Inbound Intra-Region Domestic Inbound* Domestic Outbound* $0 $1,000 $2,000 $3,000 $4,000 Value $ per Short Ton * Includes some cargo that is international imports and exports. Source: TranSystems derived from GI Transearch Database Similar to the analysis of truck freight, the top ten commodity profile shifts when ranked by total value (Figure 40). The value profile is dominated by Transportation Equipment and Miscellaneous Mixed Shipments. Together they account for 83 percent of total value. Mixed Miscellaneous Shipments is ranked first with a 51 percent share due to its composition, which includes higher value consumer products. Figure 41: Total Rail Freight in 2007 by Top 10 Commodity Groups Based on Total Tons (Excl. Coal) Other Commodity Groups Petroleum Or Coal Products Waste Or Scrap Materials Pulp, Paper Or Allied Products Primary Metal Products Clay, Concrete, Glass Or Stone Chemicals Or Allied Products Food Or Kindred Products Misc Mixed Shipments Farm Products Transportation Equipment Million Short Tons Note: excludes 40.5 million short tons of coal Source: TranSystems derived from GI Transearch Database Figure 40: Total Rail Freight in 2007 by Top 10 Commodity Groups Based on Total Value (Excl. Coal) Other Commodity Groups Apparel Or Related Products Farm Products Pulp,Paper Or Allied Products Primary Metal Products Shipping Containers Food Or Kindred Products Freight Forwarder Traffic Chemicals Or Allied Products Transportation Equipment Misc Mixed Shipments $0 $10 $20 $30 $40 $50 $60 Value, $ Billion Note: Excludes Coal with a value of $1.5 billion Source: TranSystems derived from GI Transearch Database Kansas City Regional Freight Outlook Page 34

39 Higher Value Commodities As observed earlier in the discussion of truck freight, there is a significant incidence of higher value commodities in many of the truck flows, the share varying from 26 percent in the case of intra-region truck freight to nearly 70 percent for inbound truck tonnage from Mexico. In the case of rail, the incidence of higher value commodities is greatest with domestic rail freight (Figure 42). This partly reflects the inbound shipment of intermodal freight into the study region, which includes higher value imports being railed from the Port of Los Angeles and other ports, and the outbound shipment of processed food products and other goods from the study region. Figure 42: Incidence of Higher Value/Processed Commodities in Rail Freight 70% Higher Value Commodities Share of Rail Tons 60% 50% 40% 30% 20% 10% 0% Canada Cross- Border Inbound Mexico Cross- Canada Cross- Border Outbound Border Outbound Mexico Cross- Border Inbound Domestic Inbound Rail Total Rail Freight Domestic Outbound Rail Kansas City Regional Freight Outlook Page 35

40 Domestic Rail Modes Rail freight falls into two broad transportation modes intermodal and carload. The distribution of rail freight by mode is shown in Table 9, with the primary profile focused on freight tonnage and value, excluding coal shipments. Intermodal freight accounts for only 28 percent of total tonnage (excluding coal), but it accounts for 63 percent of total value (excluding coal). The high value share is due to the transport of Miscellaneous Mixed Shipments, which are all handled by intermodal rail service. The commodity profiles of intermodal and carload rail modes are illustrated in Figure 43 to Figure 46. The largest carload commodity group is Transportation Equipment, which is largely comprised of motor vehicles (76 percent of tons in this commodity group) and motor vehicle parts/accessories (17 percent of tons in this commodity group). Intermodal freight involves a broad range of higher value commodities, while carload freight is predominantly comprised of lower value commodities; the exception is carload shipments of Transportation Equipment. Table 9: Domestic Rail Freight by Transport Mode in 2007 Million Short Tons Intermodal Carload (excl. Coal) 2007 Total (excl. Coal) Carload (incl. Coal) 2007 Total (Incl. Coal) Inbound* Outbound* Total Inbound & Outbound Intra Region Total Share of 2007 Total 28.4% 71.6% 100.0% 87.8% 100.0% Value $ Billion Intermodal Carload (excl. Coal 2007 Total (excl. Coal) Carload (incl. Coal) 2007 Total (Incl. Coal) Inbound* $29.24 $20.00 $49.24 $21.56 $50.80 Outbound* $31.33 $15.86 $47.19 $15.86 $47.19 Total Inbound & Outbound $60.58 $35.85 $96.43 $37.42 $98.00 Intra Region $0.00 $0.04 $0.04 $0.04 $0.04 Total $60.58 $35.90 $96.47 $37.46 $98.04 Share of 2007 Total 62.8% 37.2% 100.0% 38.2% 100.0% * Includes cargo classified as international imports and exports. Kansas City Regional Freight Outlook Page 36

41 Figure 43: Domestic Intermodal Rail by Commodity Group in 2007, Tons Figure 44: Domestic Intermodal Rail by Commodity Group in 2007, Value per Ton Others Electrical Equipment Apparel or Related Products Pulp, Paper or Allied Products Chemicals or Allied Products Farm Products Freight Forwarder Traffic Shipping Containers Transportation Equipment Food or Kindred Products Misc Mixed Shipments Million Short Tons Outbound Freight Tons Inbound Freight Tons Others Electrical Equipment Apparel or Related Products Pulp, Paper or Allied Products Chemicals or Allied Products Farm Products Freight Forwarder Traffic Shipping Containers Transportation Equipment Food or Kindred Products Misc Mixed Shipments $0 $5,000 $10,000 Value per Ton Source: TranSystems derived from GI Transearch Database Source: TranSystems derived from GI Transearch Database Figure 45: Domestic Carload Rail by Commodity Group in 2007, Tons (excluding coal) Others Lumber or Wood Products Pulp, Paper or Allied Products Waste or Scrap Materials Petroleum or Coal Products Primary Metal Products Clay, Concrete, Glass or Stone Chemicals or Allied Products Food or Kindred Products Farm Products Transportation Equipment Million Short Tons Figure 46: Domestic Carload Rail by Commodity Group in 2007, Value Others Lumber or Wood Products Pulp, Paper or Allied Products Waste or Scrap Materials Petroleum or Coal Products Primary Metal Products Clay, Concrete, Glass or Stone Chemicals or Allied Products Food or Kindred Products Farm Products Transportation Equipment $0 $2,000 $4,000 $6,000 Outbound Freight Tons Inbound Freight Tons Value per Ton Note: Excludes 40.5 million short tons of inbound coal. Source: TranSystems derived from GI Transearch Database Source: TranSystems derived from GI Transearch Database Kansas City Regional Freight Outlook Page 37

42 Domestic Inbound The Kansas City BEA handled 15 million short tons of rail cargo. This total excludes 40.5 million short tons of inbound coal, which was removed from the analysis in order to focus on the commodity groups covering raw materials, semi-finished and finished products. The profile of inbound rail freight by commodity type (excluding coal) is provided in Figure 47 and Figure 48. The two largest commodity types measured by tonnage are Miscellaneous Mixed Shipments (which move by intermodal rail) and Transportation Equipment (moving mostly by carload rail). These two higher value commodity groups dominate the value profile of inbound rail freight, accounting for a combined 85 percent of total value. Figure 47: Domestic Inbound Rail Freight by Top Commodity Groups Based on Tons (excl. Coal) Lumber Or Wood Products Petroleum Or Coal Products Pulp,Paper Or Allied Products Food Or Kindred Products Clay,Concrete,Glass Or Stone Chemicals Or Allied Products 15 Million Short Tons (excl. Coal) Others Primary Metal Products Farm Products Misc Mixed Shipments Transportation Equipment Million Short Tons Note: Excludes 40.5 million short tons of inbound coal. Source: TranSystems derived from Global Insight Transearch Database Figure 48: Domestic Inbound Rail Freight by Top Commodity Groups Based on Value (excl. Coal) Small Packaged Freight Apparel Or Related Products Shipping Containers Pulp,Paper Or Allied Products Food Or Kindred Products Primary Metal Products Freight Forwarder Traffic Chemicals Or Allied Products Transportation Equipment Misc Mixed Shipments $49 Billion (excl. coal) Others $0 $10 $20 $30 Value, $ Billion Source: TranSystems derived from Global Insight Transearch Database Kansas City Regional Freight Outlook Page 38

43 Domestic Outbound Outbound rail freight by commodity type is provided in Figure 49 and Figure 50. The four largest commodity groups measured by tons are Farm Products (25 percent), Food and Kindred Products (23 percent), Miscellaneous Mixed Shipments (19 percent), and Transportation Equipment (15 percent). When measured by value, the two dominant commodity groups are Miscellaneous Mixed Shipments (55 percent) and Transportation Equipment (29 percent). Figure 49: Domestic Outbound Rail Freight by Top Commodity Groups Based on Tons 2007 Domestic Outbound Rail - 15 Million Short Tons Others Freight Forwarder Traffic Shipping Containers Petroleum Or Coal Products Clay, Concrete,Glass Or Stone Waste Or Scrap Materials Chemicals Or Allied Products Transportation Equipment Misc Mixed Shipments Food Or Kindred Products Farm Products Million Short Tons Source: TranSystems derived from Global Insight Transearch Database Figure 50: Domestic Outbound Rail Freight by Top Commodity Groups Based on Value 2007 Domestic Outbound Rail - $47 Billion Others Waste Or Scrap Materials Small Packaged Freight Apparel Or Related Products Farm Products Chemicals Or Allied Products Shipping Containers Freight Forwarder Traffic Food Or Kindred Products Transportation Equipment Misc Mixed Shipments $0 $10 $20 $30 Value, $ Billion Source: TranSystems derived from Global Insight Transearch Database Domestic Intra-Region Cargo There was only 0.12 million short tons of intra-region (starts and ends within the Kansas City BEA) rail cargo in 2007 with a total value of $0.4 billion. The dominant commodity group is Farm Products (mostly grain) with a 75 percent share of tonnage. The other main commodity group is Food or Kindred Products (mostly soybean oil or byproducts) with a 13 percent share of tons. Kansas City Regional Freight Outlook Page 39

44 Domestic Freight Lanes The top ten domestic rail intermodal lanes, which account for 88 percent of intermodal tonnage, are shown in Figure 51. The largest intermodal lane is with the Los Angeles BEA and this lane includes movement of domestic freight as well as international imports and exports, which are handled by the ports of Southern California. The major commodity originating from this BEA, accounting for 88 percent of eastbound tonnage, is high value Miscellaneous Mixed Shipments (mostly freight-all-kind (FAK) which tends to be international imports from the ports of Southern California). The major commodities destined for the Los Angeles BEA are Miscellaneous Mixed Shipments (45 percent of tons moving to this BEA) and Transportation Equipment (17 percent), as well as Food or Kindred Products (13 percent) and Farm Products (10 percent). Other important intermodal lanes are the San Francisco (Oakland) BEA, the New York BEA and various Midwest locations. The major lanes handling carload rail traffic are shown in Figure 52 (the chart excludes the 41 million short tons of coal traffic originating from the Casper, WY BEA). These rail carload lanes have greater directional imbalances compared to the intermodal lanes. The largest lane is with Dallas, TX and is dominated by southbound movements of Food or Kindred Products, Farm Products and Transportation Equipment, which account for 72 percent of total southbound tonnage in this lane. The St. Louis, MO lane is dominated by inbound shipments to the study region; the major inbound commodities are Clay, Concrete, Glass or Stone, Transportation Equipment and Petroleum or Coal products. Two lanes with nearly all inbound shipments to the study region are with Detroit, MI (nearly all Transportation Equipment) and Minneapolis, MN. Figure 51: Top Ten Domestic Rail Intermodal Freight Lanes, Tons Figure 52: Top Ten Domestic Rail Carload Freight Lanes, Tons (Excl. Coal) Jacksonville, FL Norfolk, VA Salt Lake, City, UT Wichita, KS Business Economic Area (BEA) Seattle, WA Harrisburg, PA Detroit, MI Columbus, OH Chicago, IL New York, NY San Francisco (Oakland), CA Los Angeles, CA Los Angeles, CA San Francisco (Oakland), CA Detroit, MI Business Economic Area (BEA) Minneapolis, MN Houston, TX Chicago, IL St. Louis, MO Dallas, TX Million Short Tons Domestic Rail Intermodal Freight to BEA Domestic Rail Intermodal Freight from BEA Million Short Tons Domestic Rail Intermodal Freight to BEA Domestic Rail Intermodal Freight from BEA Source: TranSystems derived from Global Insight Transearch Database Note: Excludes 41 million short tons of coal from the Casper, WY BEA Source: TranSystems derived from Global Insight Transearch Database The major origin and destination BEAs for domestic rail freight are provided in Table 10 and Table 11. Kansas City Regional Freight Outlook Page 40

45 Table 10: Domestic Inbound Rail Freight Tonnage by Origin BEA, 2007 Origin BEA (Million Short Tons) Intermodal Tons Carload Tons Total Tons Share Casper, WY % Los Angeles, CA % Detroit, MI % Chicago, IL % Minneapolis, MN % St. Louis, MO % Salt Lake, City, UT % San Francisco (Oakland), CA % Wichita, KS % Tulsa, OK % Houston, TX % New York, NY % Des Moines, IA % Dallas, TX % Portland, OR % Total Above % All Other BEAs % Total % Table 11: Domestic Outbound Rail Freight Tonnage by Destination BEA, 2007 Destination BEA (Million Short Tons) Intermodal Tons Carload Tons Total Tons Share Los Angeles, CA % Dallas, TX % San Francisco (Oakland), CA % Houston, TX % Chicago, IL % Little Rock, AR % Beaumont, TX % New York, NY % Fort Smith, AR % Columbus, OH % San Antonio, TX % St. Louis, MO % Toledo, OH % Fayetteville, AR % Amarillo, TX % Total Above % All Other BEAs % Total % Kansas City Regional Freight Outlook Page 41

46 Canada Cross-Border Total rail freight to and from Canada amounted to 1.5 million short tons in 2007, with outbound tonnage (exports to Canada) of 1.1 million short tons compared to inbound tonnage (imports from Canada) of 0.4 million short tons (Figure 53). The total estimated value of rail freight was $2.0 billion with outbound value of $1.6 billion, much greater than the inbound value of $0.44 billion (Figure 54). Figure 53: Canada Rail Freight, Tons Figure 54: Canada Rail Freight, Value 1,200,000 $1.8 1,000,000 $1.6 $1.4 Rail Freight, Short Tons 800, , ,000 Rail Freight, $ Billion $1.2 $1.0 $0.8 $0.6 $ ,000 $0.2 0 Inbound from Canada Outbound to Canada $0.0 Inbound from Canada Outbound to Canada Source: TranSystems derived from Global Insight Transearch Database Source: TranSystems derived from Global Insight Transearch Database Inbound rail freight (imports from Canada) by commodity group is shown in Table 12. The two largest commodity groups are Chemicals or Allied Products and Lumber or Wood Products, which account for 61 percent of total inbound tons and 44 percent of inbound value. Higher value Machinery accounts for 22 percent of tons and 46 percent of value, while Transportation Equipment accounts for 2 percent of tonnage and 22 percent of value. Outbound rail freight (exports to Canada) by commodity group is shown in Table 13. The two largest commodity groups are Chemicals or Allied Products and Transportation Equipment, which together account for 80 percent of tonnage and 92 percent of value.. Kansas City Regional Freight Outlook Page 42

47 Table 12: Inbound Rail Freight from Canada by Commodity Group Commodity Group Short Tons Value $ Billion Share of Tons Chemicals Or Allied Products 124,052 $ % Lumber Or Wood Products 118,994 $ % Pulp, Paper Or Allied Products 57,114 $ % Primary Metal Products 36,829 $ % Farm Products 20,040 $ % Nonmetallic Minerals 12,514 $ % Machinery 8,658 $ % Clay, Concrete, Glass Or Stone 7,411 $ % Petroleum Or Coal Products 6,685 $ % Food Or Kindred Products 4,425 $ % Total Above 396,722 $ % Others 1,315 $ % Grand Total 162,807 $ % Table 13: Outbound Rail Freight to Canada by Commodity Group Commodity Group Short Tons Value $ Billion Share of Tons Chemicals Or Allied Products 593, % Transportation Equipment 299, % Farm Products 86, % Waste Or Scrap Materials 40, % Food Or Kindred Products 36, % Lumber Or Wood Products 32, % Rubber Or Misc Plastics 10, % Pulp, Paper Or Allied Products 4, % Petroleum Or Coal Products 4, % Primary Metal Products 1, % Total Above 1,109,694 $ % Others 2,317 $ % Grand Total 825,019 $ % The origin and destination patterns by Canadian province are illustrated in Figure 55 and Figure 56, with supporting analysis in Figure 57. Freight flows are heavily concentrated with the province of Ontario, which accounts for 51 percent of total rail tonnage and 57 percent of total value. Manitoba (18 percent of tonnage) and Quebec (10 percent) are other also important lanes for rail cargo. Figure 55: Map of Destination Provinces in Canada for Outbound Rail Freight Kansas City Regional Freight Outlook Page 43

48 Kansas City Regional Freight Outlook Page 44

49 Figure 56: Map of Origin Provinces in Canada for Inbound Rail Freight Canadian Province Figure 57: Canada Rail Freight Lanes, Tons Nova Scotia New Brunswick Alberta Saskatchewan British Columbia Quebec Manitoba Ontario 0 100, , , , , , ,000 Outbound Rail Freight to Canada Short Tons Inbound Rail Freight from Canada Kansas City Regional Freight Outlook Page 45

50 Mexico Cross-Border Total rail freight to and from Mexico amounted to 478,000 short tons in 2007, with outbound tonnage (exports to Mexico) accounting for 87 percent of the total (Figure 58). The total estimated value of rail freight was $0.29 billion, with inbound freight (imports from Mexico) exceeding the value of outbound freight (exports to Mexico) due to the higher value commodities imported from Mexico and the lower value agricultural commodities shipped to Mexico. Figure 58: Mexico Rail Freight, Tons Figure 59: Mexico Rail Freight, Value 450,000 $ ,000 $ ,000 $0.14 Rail Freight, Short Tons 300, , , ,000 Rail Freight, $ Billion $0.12 $0.10 $0.08 $ ,000 $ ,000 $ Inbound from Mexico Outbound to Mexico $0.00 Inbound from Mexico Outbound to Mexico Source: TranSystems derived from GI Transearch Database Inbound rail freight (imports from Mexico) by commodity group is shown in Table 14. The three largest commodity groups, accounting for 78 percent of tonnage and 56 percent of value, are Chemicals or Allied Products, Primary Metal Products, and Fabricated Metal Products. Outbound rail freight (exports to Mexico) by commodity group is shown in Table 15. Freight is dominated by shipments of Farm Products, which account for 88 percent of tonnage. Although accounting for only four percent of tonnage, higher value Transportation Equipment represents 52 percent of total value of outbound rail freight. Kansas City Regional Freight Outlook Page 46

51 Table 14: Inbound Rail Freight from Mexico by Commodity Group Commodity Group Short Tons Value $ Billion Share of Tons Chemicals Or Allied Products 19, % Primary Metal Products 15, % Fabricated Metal Products 12, % Clay, Concrete, Glass Or Stone 2, % Transportation Equipment 2, % Electrical Equipment 2, % Machinery 1, % Food Or Kindred Products 1, % Waste Or Scrap Materials 1, % Farm Products % Total Above 59,288 $ % Others 742 $ % Total 60,029 $ % Source: TranSystems derived from GI Transearch Database Table 15: Outbound Rail Freight to Mexico by Commodity Group Commodity Group Short Tons Value $ Billion Share of Tons Farm Products 368,012 $ % Food Or Kindred Products 15,681 $ % Transportation Equipment 15,157 $ % Chemicals Or Allied Products 8,256 $ % Waste Or Scrap Materials 8,135 $ % Nonmetallic Minerals 1,057 $ % Primary Metal Products 726 $ % Fabricated Metal Products 200 $ % Machinery 186 $ % Pulp, Paper Or Allied Products 96 $ % Total Above 417,506 $ % Others 124 $ % Grand Total 417,630 $ % Source: TranSystems derived from GI Transearch Database The origin and destination patterns of rail traffic by Mexican state are illustrated in Figure 60 and Figure 61, with supporting analysis by lane in Figure 62. Aside from unidentified lanes, the largest two rail lanes are with the states of Jalisco and Distrito Federal, which account for 30 percent of total tonnage. Other lanes are with the border states of Nuevo Leon and Tamaulipas. Kansas City Regional Freight Outlook Page 47

52 Figure 60: Map of Destination States in Mexico for Outbound Rail Freight Kansas City Regional Freight Outlook Page 48