network appalachia
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Network Appalachia. Access to Opportunity in the Global Economy of the 21 st Century. Get Ready to Run. Every morning in Africa, a gazelle wakes up. It knows it must run faster than the lion or it will be killed. Every morning in Africa, a lion wakes up. - PowerPoint PPT PresentationTRANSCRIPT
Network AppalachiaNetwork Appalachia
Access to Access to Opportunity in Opportunity in
the Global the Global Economy of Economy of
the 21the 21stst CenturyCentury
Get Ready to RunGet Ready to RunEvery morning in Africa, a gazelle wakes up.Every morning in Africa, a gazelle wakes up.
It knows it must run faster than the lionIt knows it must run faster than the lion
or it will be killed.or it will be killed.
Every morning in Africa, a lion wakes up.Every morning in Africa, a lion wakes up.
It knows that it must outrun the gazelleIt knows that it must outrun the gazelle
or it will starve.or it will starve.
It doesn’t matter if you’re a gazelleIt doesn’t matter if you’re a gazelle
or a lion.or a lion.
When the sun comes up,When the sun comes up,
you’d better start running!you’d better start running!
Thomas L. FriedmanThomas L. Friedman
New Physical and New Physical and Economic Links Economic Links
Appalachian Development Appalachian Development Highway SystemHighway System
1.1. 3090 Mile System—13 states3090 Mile System—13 states2.2. 31 Individual Corridors31 Individual Corridors3.3. 85% Complete85% Complete
Emerging Global Supply Chain Emerging Global Supply Chain Inland Port LocationsInland Port Locations
Launching Network AppalachiaLaunching Network Appalachia
Net “A” Study Group Net “A” Study Group 1.1. TransportationTransportation
2.2. International Trade International Trade
3.3. Economic Economic Development Development
FHWA Funding SecuredFHWA Funding Secured
Consultant Selected Consultant Selected
Design Research & Planning Design Research & Planning ActivitiesActivities
Macro-Economic and Macro-Economic and Demographic Transitions Demographic Transitions
Economic TrendsEconomic Trends Global Real GDP (past 6 decades): Global Real GDP (past 6 decades): + 8 fold, + 3.8% annually + 8 fold, + 3.8% annually Global Trade Volume : Global Trade Volume : + 64 fold, +7.6% annually + 64 fold, +7.6% annually (Manufactured Goods) (Manufactured Goods) US Economy (International): 1950-3%, 2000-25%, 2050-50%US Economy (International): 1950-3%, 2000-25%, 2050-50%
Demographic TrendsDemographic Trends Population is shifting from North/Inland to South/CoastalPopulation is shifting from North/Inland to South/Coastal Population is agingPopulation is aging
• 2000 – 1 in 5 Americans are retirement age2000 – 1 in 5 Americans are retirement age• 2030 – 1 in 3 Americans are retirement age2030 – 1 in 3 Americans are retirement age
Demographics shifts affect: Demographics shifts affect: • Demand/consumption shifts from manufacturing to service sectorDemand/consumption shifts from manufacturing to service sector• Labor force shifts from manufacturing toward service sectorLabor force shifts from manufacturing toward service sector
U.S. Manufacturing Grows & Shifts U.S. Manufacturing Grows & Shifts Lower value/profit commodities seek low cost off-shore laborLower value/profit commodities seek low cost off-shore labor Higher value/profit commodities sustain a domestic presenceHigher value/profit commodities sustain a domestic presence
The Global Marketplace:The Global Marketplace:Looking ForwardLooking Forward
(% of World GDP)(% of World GDP)
EU 34%
Japan 12%
China 4%
India 2%
US 28%
Other 20%
EU 15%
Japan 4%
China 28%
India 17%
US 26%
Other 10%
2004 2050
Intermodal GlobalIntermodal Global Supply Chain Supply Chain
Global Commodity Flows Increase & DiversifyGlobal Commodity Flows Increase & Diversify Domestic Flows (2000-2020): Domestic Flows (2000-2020): +2/3 +2/3 International Flows (2000-2020): International Flows (2000-2020): Double Double Latin/South America Flows (2000-2020): TripleLatin/South America Flows (2000-2020): Triple Average Distance/Shipment:Average Distance/Shipment:
• 1993 – 420 miles1993 – 420 miles• 2003 – 590 miles (+ 40%)2003 – 590 miles (+ 40%)
Intermodal: 21Intermodal: 21stst Century Mode of Choice Century Mode of Choice World container ports: 1970 - 75 ports, 2005 – 550 portsWorld container ports: 1970 - 75 ports, 2005 – 550 ports Volume of container throughput, US gateway ports:Volume of container throughput, US gateway ports:
1970 – 1 million1970 – 1 million 2000 – 20 million2000 – 20 million2020 – 50 million2020 – 50 million 2050 – 100 million2050 – 100 million
Global Trade Lanes EmergeGlobal Trade Lanes EmergeEast – West:East – West: US-North Asia, US-Europe/South Asia US-North Asia, US-Europe/South Asia
North – South: US- Latin/South AmericaNorth – South: US- Latin/South America
Engaging the RegionEngaging the Region
Five WorkshopsFive Workshops
500 Participants500 ParticipantsBusinessBusiness
CivicCivic
AcademicAcademic
OutputOutput Strategic PrioritiesStrategic Priorities
Tactical OpportunitiesTactical Opportunities
Network Appalachia FindingsNetwork Appalachia Findings Over past 6 decades, GDP +8 fold, trade +64 foldOver past 6 decades, GDP +8 fold, trade +64 fold Long-term economic expansion is underlying driver, plus:Long-term economic expansion is underlying driver, plus:
Containerized intermodal supply chainContainerized intermodal supply chain
Telecommunication/information technologyTelecommunication/information technology
Demographic shifts Demographic shifts
Market expansion & new trade agreementsMarket expansion & new trade agreements While annual trends vary, global economy is fully establishedWhile annual trends vary, global economy is fully established East-West trade lanes remain strong, North-South will growEast-West trade lanes remain strong, North-South will grow Global supply chain is intermodal by nature, ports are gatewaysGlobal supply chain is intermodal by nature, ports are gateways Access to supply chain is essential for competitiveness Access to supply chain is essential for competitiveness Enhanced intermodal coordination improves capacity, cost-Enhanced intermodal coordination improves capacity, cost-
efficiency, reliability, and addresses intensifying energy & efficiency, reliability, and addresses intensifying energy & environmental issues environmental issues
Network AppalachiaNetwork AppalachiaIntermodal Corridors of Commerce & Inland PortsIntermodal Corridors of Commerce & Inland Ports
Planning & Development Planning & Development FrameworkFramework
AdvocacyAdvocacyRegion must advocate for its own future through buildingRegion must advocate for its own future through building
innovative & collaborative new partnerships. innovative & collaborative new partnerships.
PlanningPlanningEncourage & support expanded planning & developmentEncourage & support expanded planning & development
Multi-modal Multi-modal Highway, Rail, & Maritime Highway, Rail, & Maritime
Multi-disciplinaryMulti-disciplinary Transport, Econ. Dev., & Global Trade Transport, Econ. Dev., & Global Trade
Multi-jurisdictionalMulti-jurisdictional Local, State, National, & Global Local, State, National, & Global
Multi-sector Multi-sector Public/Private CoordinationPublic/Private Coordination
InvestmentInvestmentBuild on momentum of new public/private investment modelsBuild on momentum of new public/private investment models
Network Appalachia Network Appalachia