Enhancing Multi-modalism In and Around Airport Facilities

Enhancing Multi-modalism In and Around Airport Facilities Moderator Jeff Zimmerman/ Director, Columbus Region Logistics Council Panelists Chuck Dyer/ Project Manager, Ohio Department of Transportation Andy Schneider/ Associate- Assistant Vice President, TransSystems Corporation Bryan Schreiber/ Business Dev. Manager, Columbus Regional Airport Authority

Chuck Dyer Ohio Department of Transportation Office of Statewide Planning & Research ENHANCING MULTIMODALISM IN AND AROUND AIRPORT FACILITIES 2

Ohio s Airport System Air Cargo and Ohio FAA s NextGen Initiative 3

104 Publicallyowned, pubic-use airports 97 General Aviation (GA) Facilities 7 Commercial Airports with regularly scheduled service 4

Airport Operations are defined as the number of takeoffs and landings 20 of the 104 airports in Ohio experienced more then 50,000 aircraft operations 5

Part 139 Certification is issued to airports for air carrier operation. Airports are not allowed to provide air carrier services without it. To obtain a certificate, an airport must meet operational safety standards (example firefighting and rescue equipment) Ohio Airports with Part 139 Certification Associated City Airport name Part 139 Certified Comercial Airports Akron Akron-Canton Regional Cleveland Cleveland-Hopkins Int'l Columbus Port Columbus International Columbus Rickenbacker International Dayton James M. Cox Dayton Int'l Toledo Toledo Express Youngstown/Warren Youngstown-Warren Regional General Aviation Cincinnati Cincinnati Municipal-Lunken Field Cleveland Burke Lakefront Columbus Ohio State University Mansfield Mansfield Lahm Regional Springfield Springfield-Beckley Municipal Wilmington Wilmington Air Park 6

Developed and undeveloped industrial parks at or near airports can greatly benefit both the airport and business. Ohio s Airports With Industrial Parks Airports have an industrial park located on their property Airports have an industrial park located abutting or near their property 7

ODOT funding FY11: $904,078 Revenue Source: Tax on aviation fuel sold in Ohio 90/10 grant program specific to GA airports for obstruction removal and resurfacing projects. Other development funding Passenger Facility Charges Airport Bonds Local/Sponsor Funds Private Development 8

FAA Airport Improvement Program (AIP) FY11: $85,283,497 Revenue Source: Taxes on airplane tickets and tax on aviation fuel For commercial service and GA airports to help improve safety and efficiency How the money is divided up FY11 GA - $18,283,073 FY11 Commercial Service - $66,901,424 9

Cargo Apportionment 3.5% of AIP Funds Cargo Service Airports = Airports that are served by aircraft providing air transportation of only cargo with a total annual landed weight of more than 100 million pounds. Airports qualified as cargo service airports share the 3.5% of AIP apportionment made available. Cargo funds are apportioned to each cargo airport in the same proportion as its proportion of landed weight of cargo aircraft to the total landed weight of cargo aircraft at all qualifying airports. (source: FAA Order 5100.38C) Airport Name 2011 Landed Weight (lbs.) % of Total Cargo Weight LCK Rickenbacker International 653,902,306 0.49% FY 13 Cargo Entitlement $ 543,668.00 TOL Toledo Express 650,714,500 0.48% $ 541,018.00 CLE Cleveland-Hopkins $ 306,859.00 369,077,012 0.27% International 10

Ohio s Airports Air Cargo and Ohio FAA s NextGen Initiative 11

Air cargo market faces stiff competition Among other air carriers, and Trucks, container ships, and rail cars Air cargo primarily moves by two methods Dedicated cargo aircraft In the belly of passenger planes Domestic Cargo Virtually unchanged between 2011 to 2012 12

What is impacting air cargo Fuel Prices Passenger and freight carriers Vertical Integration Shifts in the market has prevented the opening of new markets, to optimizing existing markets. Modal Shift Greater competition from trucks, as the industry shifts from integrated express to time-definite service and more emphasis is placed on cost-staving measures. Declining Availability of Belly Space on Domestic Carriers A small percentage of air cargo is carried on domestic passenger aircraft in the US. Decrease in USPS Mail Volume The threshold for mail traveling by air has shifted from 500 to 800 miles. 13

Major Hubs Lost within the last decade BAX Global Toledo (1992 2011) DHL Wilmington (2003 2008) Emery Worldwide Dayton (1981 2006) From 2003 to 2011 with exception of Akron-Canton Regional, all commercial service airports in Ohio experienced a decline in air cargo tonnage. Akron grew due to the record growth in passenger enplanements and the associated belly freight 2003 to 2011 Air Cargo Tonnage CLE Cleveland-Hopkins Int'l -1.4% CMH Port Columbus International -13% CVG Cincinnati/Northern Kentucky Int'l 5.1% DAY James M. Cox Dayton Int'l -37% LCK Rickenbacker International -1.9% TOL Toledo Express -7.4% 14

Ohio s Airports Air Cargo and Ohio FAA s NextGen Initiative 15

2011 730.7 Million passengers moved on US Airlines 2024 Estimated over 1 Billion passengers moved on US Airlines Next Generation Initiative - NextGen Modernization of our airspace from radar based surveillance to precision satellite monitoring. Enhance Safety Reduce flight time Reduce emissions www.faa.gov/nextgen 16

Current limiting factors NextGen will address; In-Trail Separation of aircraft Lateral separation of aircraft The sequencing and separation of departing and landing aircraft on intersecting runways The sequencing of departing and arriving aircraft on a single runway. The sequencing of aircraft approaching airport located in close proximity to one another. 17

Where the people are moving air freight is also moving, especially within wide belly aircraft Air cargo faces stiff completion from alternative modes 61% of US domestic air cargo is integrated express carriers Only 12% of the international market is air cargo but is expected to increase to 31% Developing a product base for shipment via air cargo near or around airports with existing capacity will increase air cargo 18

Chuck Dyer Project Manager Chuck.Dyer@dot.state.oh.us (614) 466-3718 Current Studies Access Ohio 2040 www.access.ohio.gov Ohio Airports Focus Study www.airportsfocusstudy.ohio.gov Statewide Freight Study Documents available through the Access Ohio project website 19

Enhancing Multi-modalism In and Around Airport Facilities

Rickenbacker Inland Port Multimodal Infrastructure Improvements Ohio Conference On Freight September 7, 2013

Rickenbacker Inland Port Fast Facts 12 Miles Southeast of Columbus, One Day Truck Drive to 50% of US and Canada Populations Two 12,000 Ft. Airport Runways 110,000 Metric Tons Air Cargo, 300,000 Container Transfers in 2006 Double-Stack Rail Service from Port of Norfolk Active Foreign Trade Zone September 7, 2013 Ohio Conference on Freight 22

Infrastructure Projects at Rickenbacker Norfolk Southern(NS) Intermodal Terminal Alum Creek Drive Extension o (Rickenbacker Parkway) Pickaway East-West Connector Alum Creek Corridor/I-270 September 7, 2013 Ohio Conference on Freight 23

RGLP Aerial Map September 7, 2013 Ohio Conference on Freight 24

NS Intermodal Terminal Heartland Corridor o Multi-state, public-private partnership o Link Central Ohio directly to Port of Norfolk o High-speed, double stacked container loads o 30 tunnels + 20 other overhead structures being cleared for increased height loads o $151M investment September 7, 2013 Ohio Conference on Freight 25

NS Intermodal Terminal 284 Acres, Miles of Track Ultimate Capacity 400,000 lifts per year Rail Spur to Rail Campus Rickenbacker Global Logistics park (RGLP) September 7, 2013 Ohio Conference on Freight 26

Heartland Corridor Map (Insert) September 7, 2013 Ohio Conference on Freight 27

Rickenbacker Global Logistics Park 1,576 Acre Business Park and Logistics Hub Owned by Columbus Regional Airport Authority (CRAA), Duke Realty Corp and Capitol Square, Ltd. Rail Campus Intermodal Campus Air Cargo Campus North Campus September 7, 2013 Ohio Conference on Freight 28

Alum Creek Extension Later Named Rickenbacker Parkway New 4-Lane Divided Facility From SR 317 Directly to Intermodal Terminal 4.5 Miles Improved Connectivity to I-270 Direct Access to Rail, Intermodal, and Air Cargo Campuses September 7, 2013 Ohio Conference on Freight 29

Pickaway East West Connector Connect South Side Rail Terminal and Rail Campus RGLP to Interstate Highway System Via US 23 5-Lane New Construction with RR Grade- Separation, Interchange at US 23 and Connector Roads for Local Network Accelerated Design and Construction September 7, 2013 Ohio Conference on Freight 30

Pickaway East-West Map Ohio Conference on Freight 31

Alum Creek Drive / I-270 Interchange Franklin County Engineer Estimates Alum Creek/I-270/Groveport Road Cost More Than 40,000 Hours of Unnecessary Travel Delay Per Year (Cars and Trucks) This is the Proverbial Front Door to Rickenbacker September 7, 2013 Ohio Conference on Freight 32

Alum Creek Corridor/I-270 Ohio Conference on Freight 33

Alum Creek / I-270 Interchange Groveport Road Grade Separation Over Alum Creek With Roundabouts on Either Side (East-West) New Interchange (Upgrades, Redesign and Expansion) September 7, 2013 Ohio Conference on Freight 34

Related Parties and Stakeholders Columbus Area Chamber of Commerce Franklin County MORPC ODOT Pickaway County Engineer Pickaway Progress partnership Columbus Regional Airport Authority Pickaway County Commissioners September 7, 2013 Ohio Conference on Freight 35

What Are The Expected Benefits? First 10 Years Should See: o $660M transportation cost savings to shippers o Reduction of 49 million truck miles in Ohio o Significant reduction in emissions September 7, 2013 Ohio Conference on Freight 36

Over The Next 30 Years 9500 Direct jobs 10,900 Indirect Jobs 34 Million Sq. Ft. Industrial/Logistic Development $1.2 Billion in Building Construction $15.1 Billion Economic Impact $800 Million + Direct Local, State, School Tax Revenues $1.26 Billion of Indirect Tax Revenues September 7, 2013 FRA-70-13.54 PID 77372 Ohio Department of Transportation 37

Source http://www.rickenbacker.org/intermodal/ benefits.asp Economic and Environmental Benefits Analysis for Proposed Rickenbacker Intermodal Facility, April 10, 2003, Norbridge and TranSystems September 7, 2013 Ohio Conference on Freight 38

Questions & Answers? Andrew Schneider, AICP 614-433-7800 amschneider@transystems.com September 7, 2013 Ohio Conference on Freight 39

Enhancing Multi-modalism In and Around Airport Facilities

Rickenbacker Inland Port Columbus, Ohio, USA September 13 th, 2013

Transforming Excess Capacity Lockbourne Air Force Base becomes the Rickenbacker Inland Port September 22, 2013 42

History With war looming, an air base was proposed to be located near the village of Lockbourne, just outside of Columbus, Ohio The Lockbourne Army Air Base opened in June 1942 and initially served as a B-17 and glider training facility In 1974 the base was renamed Rickenbacker Air Force Base to honor the memory of World War I flying ace Eddie Rickenbacker Rickenbacker continued to serve as a Strategic Air Command base through the Cold War Eventually realigned to the Ohio Air National Guard, and through a conversion process, has been turned over to civilian use September 22, 2013 43

Transformational Development With base transportation assets already in place, in 1979 the Franklin County Board of Commissioners voted to establish the Rickenbacker Port Authority to assist in conversion to civilian use The first large scale development occurred at Rickenbacker in 1985 with the establishment of an air cargo hub and bulk sorting facility for the Flying Tigers To encourage further development, Rickenbacker established Foreign-Trade Zone No. 138 in 1987 In 1993 Forward Air purchased their first site of what would become a multi-site operation at Rickenbacker that today is its North American Trucking Hub Throughout the 1990s the Rickenbacker area developed into a international logistics hub as companies recognized the value of its geography and infrastructure September 22, 2013 44

Transformational Development, cont. In the mid-90 s U.S. Customs relocated their Columbus Port offices to Rickenbacker The Columbus Municipal Airport Authority and Rickenbacker Port Authority, merged forming the new Columbus Regional Airport Authority (CRAA) effective January 1, 2003 In 2008 the Columbus Regional Airport Authority through collaboration with Norfolk Southern Corporation, opened the Rickenbacker Intermodal Rail Yard adjacent to the airport Meanwhile the surrounding Authority-owned land was reorganized into different industrial campuses collectively known as The Rickenbacker Global Logistics Park In 2010 the Norfolk Southern Heartland Corridor opened, thereby significantly increasing the speed of containerized freight moving in double-stack trains between the East Coast and the Midwest September 22, 2013 45

Rickenbacker International Airport Strategically located as an air cargo hub Geographically positioned with strong trucking networks to major US cities Experienced and efficient with cargo operations Lower cost than traditional gateways 46

Rickenbacker International Airport Cargo-Dedicated Airport Focused on serving the air freight industry, speed and efficiency Authorized for Boeing 747-8 operations 24hr Air Traffic Control Tower and Operations staffing with all-weather navigation systems including ILS Category II Approach Two parallel runways over 12,000 feet each (3,650 meters each) US Customs and Border Protection on site 130 acres (53 hectares) of uncongested cargo ramp with in-ground hydrant fueling Served over 4000 cargo flights in 2012 including 156 Boeing 747- Freighter flights 47

From Airport to Inland Port Rickenbacker Inland Port Columbus, Ohio, USA 48

Rickenbacker Inland Port, A Total Logistics Platform: Separated Airport Missions Port Columbus International Airport (passenger focused) Rickenbacker International Airport (cargo focused) Both airports are run by the CRAA and do not compete with each other for service or resources Robust and Efficient Road Feeder Service Regardless of the mode, freight needs trucking to and from the last mile Major US Rail Providers Norfolk Southern CSX Connect Trans-Ocean Shipping to the Heartland 50

Rickenbacker Inland Port, continued Infrastructure Investment Roadways, Runways, Rail Yards Facilitated by public/private partnerships and strong community support recognizing the economic value of the logistics industry Since the first civilian authority was created, approximately 265 million dollars of infrastructure investment has taken place Industrial Development Rickenbacker Global Logistics Park Additional concentration of Distribution Centers Resulting from and benefitting from logistical infrastructure that leverages geographic advantage Room for 100 million square feet of distribution under roof Foreign Trade Zone (FTZ) # 138 Administered by the CRAA, serves a 25 county area 2.75 billion in goods entered in 2012 Provides a strategic advantage for international companies in their import, distribution and manufacturing arms 51

Rickenbacker Inland Port, Keys to Success: Geography Original Strategic Vision Public and Political Support Situational Awareness Continuing Leadership Stakeholder Awareness Collaboration Resulting in: a self-sustaining and growing transportation & supply chain logistics cluster 52

Rickenbacker Inland Port, Summary Ideal geographical location for U.S. distribution and export consolidation Multimodal logistics hub bringing Air, Rail, Trucking and Ocean modes together Cargo-dedicated airport with a long history serving the air cargo industry Strong trucking partners provide a gateway to the East and Midwest U.S. Robust regional economy with active support of logistics and a large logistics community centered around the airport Low cost of doing business Ample room for additional industrial development 53

Questions? Thank you for this opportunity to present. David Whitaker Vice President, Business Development & Communications Dwhitaker@ColumbusAirports.com 614 239 5028 Bryan Schreiber Manager, Business Development Air Cargo Bschreiber@ColumbusAirports.com 614 409 3621 54