A Tale of Three Ohio Cities

Bradley Hull PhDJohn Carroll University

October 8, 2010

“A Tale of Three Regions”:• Columbus & Central Ohio• Toledo and NW Ohio• Cleveland and NE Ohio

Status of and Opportunities for:• water• rail• truck• pipe• air

Heartland Corridorfrom Norfolk Virginia

RICKENBACKER

MARION

COLUMBUS LOGISTICS PROJECTS

Niche: Retail Center

360o arc

Explosive DC growthNorfolk’s “Inland Port”NS Heartland Corridor

Marion CSX IM terminalI-70 Corridor of the Future

Rickenbacker Airport

CSX NORTH BALTIMORE

TOLEDO LOGISTICS PROJECTS

Niche: Logistics Hub

270o arc

Toledo Express AirportCSX National Gateway

CSX Marion HubCN Railroad

Port +181acresPort $37M stimulusNova Scotia MOU

USDOT Tpn CenterGreat Lakes Hist. Soc.

CSX MarionCSX

CSX

Cleveland/Akron/Canton LOGISTICS PROJECTS

Niche: Manufacturing

180o arc

I-71 Innerbelt Bridge crumbling.

United/Continental?Southwest/AirTran?

?

Ohio Water

• Which foreign country is Ohio’s largest trading partner?• What is the shortest route between the Lake Erie ports and Rotterdam/Antwerp?• How close does the Ohio river get to Lake Erie?

Potential (Actual) Cross Lake Routes

Ohio from the

sky

Geographical Strategic

Advantage 12 days

Where is the Midwest?

Chemicals“Polymer Valley”AutomotiveAluminumSteel

Canada: Many Short Sea Routes(James Frost, Marinova)

500 miles250 miles100 miles 1000 miles750 miles

Miles that 1 gallon will transport 1 ton of cargo

Truck - 155

Train - 413

Feeder Container Ship - 1,115

THE BENEFITS

Fuel Efficiency:

Protection from Diesel price spikes:

INTERNATIONAL CONNECTIONS

HalifaxMontreal

CSX

CNCP

NS

Current Canadian delivery issues:

• Eastern Ohio is not well served• CSX has access to Montreal but

no container business

DetroitCN/CP

ClevelandChicago

Columbus

Toronto

Montreal

Halifax

CSX

CN

CP

NS

from NEO through Detroit/Chicago to Canada

Less wellserved

Ohio: first major Great Lakes ports of entry!

Less than 100 miles to the Ohio River

Container on barge? Project cargo?

Steel?

New Panama Canal opens in 2012-2014

WellsvilleOhio

Ohio Rail& Intermodal

Q: How do we fit in to the US rail network?

Waterlevel Route

New York

Norfolk, Portsmouth

Baltimore

CHICAGO/EAST COAST CORRIDOR

NSCSX

4 days

New York

Norfolk, Portsmouth

Baltimore

Chicago

Columbus

NORFOLK SOUTHERNHEARTLAND CORRIDOR PROJECT

Heartland Corridor

25 hours

NS

NS

NS

New York

Norfolk

Baltimore

Chicagobypass

NATIONAL GATEWAY

NE OHIO:Better Chic service.2-Stack ex Balt, Norfolk.

NATIONAL GATEWAY

CSX current route

CSX

CSX

Existing Intermodal Terminal

NEW Intermodal Terminal

Cleve

Akron

CantonBrewsterNavarre

WheelingPitts

Toledo

Lima

NE OHIO IMPACTS:

1. CN Access2. Serves 350

companies

3. 400,000 truck loads per year

Opportunity!Navarre IM Terminal

Conneaut

Ohio Refined Products Pipelines

Q: where in the US can you find low cost diesel?

Taft

Richmond

Mobile

NashvilleKnoxville

Selma

Sweetwater

Jacksonville

Montgomery

AthensBeltonSpartanb’g

Charlotte

Birmingham

Collins

Meridian

Atlanta

Greensboro

Rome

Lookout Mtn

GriffinMacon

Americus

Albany

Bainbridge

Arcadia

Baton Rouge

ChalmetteGaryville

Lake Chas

Columbus

Convent

Fairfax

Manassas

Memphis

Norfolk

Oxford

Pascagoula Pensacola

Panama City

Tampa

Pt Everglades

Roanoke

SavannahVicksburg

Baltimore

St MarksNiceville

Charleston

Eagle Point

Linden

Wilmington

W. Memphis

From Europe

Major Refined Products Pipelines(gaso, diesel, kero, jet)

• access to ALL markets

• can be a “dumping ground” for refined products

From Canada

Steubenville

YoungstownFindlay

Lima

BrecksvilleCygnet

Dayton

Lebanon

Catlettsburg

Bellevue

Cincinnati

MariettaTodhunter

Sciotoville

Coraopolis

Columbus

2-10”Huntington

10”

Detroit

2-12”,1-10”

2-12”

Teppco

Teppco 20”

Ohio Refineries & Product Pipelines

Bromley

Mogadore

Niles

Canton

Shell 12”

18”

10”

Rogers Jn

W.Pt.

Boardman

Fostoria

Tiffin

Lorain16”10”

10”

10”

12”

Medway

Aurora

Covington

Van Port

10”

10”

NEW 16”

Cardinal Pipeline

10”

Marion

Heath

Pittsburgh

8/10/12”

10” ex Robinson

10” 10”

10”,4”

2-12”

Trnsmtgne 8” 2-10”,2-12”,16”

WPAFB

Akron6”

ClevelandToledo

Pipelines:Buckeye P/LMarathon P/LSun P/LInland P/L

barge

barge

Currently near diesel supply points:

NEO Pipelines:Buckeye P/LMarathon P/L

Sun P/LInland P/L

refinery

Opportunity?: Locate near the “dots” (gasoline and diesel supply points)

Ohio Truck & Highway

Chicago/East Coast CorridorDid you know: 43% of Ohio VMT are through traffic?

http://www.dot.state.oh.us/groups/tft/Documents/21stCenturyTransportationPrioritiesTaskForceReport-CombinedAppendices-Web.pdf

I-70 US Corridor of the Future

http://www.corridors.dot.gov/

Franklin Montgomery Summit Stark Hamilton Cuyahoga Lucas Mahoning State Urban System

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

3.53% 4.92%

8.47%9.47%

11.64%12.31%

15.50%

36.08%

13.38%

Percentage of Federal Aid Mileage in the Deficient Range by Urbanized County as of 2007

Perc

ent

of T

otal

Mile

age

2006 Data : Cuyahoga, Mahoning, Stark, and Summit2007 Data : Lucas, Franklin, Hamilton, and Montgomery

Ohio Department of Transportation State of the Local, Federal-Aid, Off-State System 2006-2007 Report.http://www.dot.state.oh.us/Divisions/TransSysDev/Innovation/InfrastructureManagement/Reports/Pages/default.aspx

Waterlevel Route

New York

Norfolk, Portsmouth

Baltimore

Supplying NEO from the East Coast

NSCSX

Chicago3-4 days delay

HudsonRiver

Erie Canal

Truck from east coast

Waterlevel Route

New York

Norfolk, Portsmouth

Baltimore

The Chicago/East Coast Corridor

NSCSX

4 days

Rail Rail/Truck TruckTo East Coast

Overland Routes to East Coast

Converting Truck to Rail:1. CSX/UP UMAX project2. NS/JB Hunt partnership

OPPORTUNITY?

Ohio AIR

Q: Which airport handles the least airfreight – Cleveland Hopkins, Toledo Express, Rickenbacker?

http://www.toledoexpress.com/air-cargo/cargo-destination-map

Worldwide Shenker acquired domestic BAX Global in March 2009, giving Toledo international access for the first time. Toledo allows Schenker to avoid gateway entry ports

Deutsche Bahn/Shenker/BAX Global:#1 in European land transportation#2 in worldwide air freight#3 worldwide ocean freight$22.7B revenues

New Toledo/Australia route, New Toledo/Germany/Dubai “skybridge”

A Toledo niche

Conclusions:1. Columbus and Toledo have done a

wonderful job of improving their infrastructure.

2. NEO has a golden opportunity for water and opportunities for rail and rail/truck

The study can be found at:www.neotec.org

andwww.neohiotransportationupdate.com

Bradley Hull PhDbzhull@jcu.edu

216-397-4182