tdl & exports regional intermediary design
DESCRIPTION
TRANSCRIPT
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Workshop One
March 11, 2011
Workshop One
March 11, 2011
Sponsored by
New Economy Initiative
Hosted by
Detroit Regional Chamber
and
Michigan State University
TDL & Exports Regional Intermediary Design
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AcknowledgementsAcknowledgements
• MSU, DRC, WSU and all participants would like to personally thank NEI for the resources to continue with the implementation of project results
• We are encouraged by the enthusiasm of all stakeholders to contribute to and continue with this important economic development and new jobs creation project
• Thank you to NEI for your vision and support to help transform the region!
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AgendaAgenda
• Welcome• Introductions• Hub Implementation Status• Best Practices Hub Research• Regional Intermediary Capabilities: Breakout 1
– Discussion– Report out
• Organizational Models: Breakout 2– Discussion– Report out
• Planning for next project steps
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TDL & Exports Regional Intermediary DesignTDL & Exports Regional Intermediary Design
Workshop Guidelines:• All participants will give the meeting our full attention,
positive energy and commitment to the project• All participants will be open, candid and honest and allow
others to do the same• Respect will be the foremost goal of all participants; we will
center on issues, not personalities• All participants will center first on gaining understanding,
second on convincing others• All input raised will be captured for future use and shared
with all attendees• Think FUTURE; Think strategic; Think CAN DO !
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TDL & Exports Regional Intermediary DesignTDL & Exports Regional Intermediary Design
Workshop Desired Outcomes:
• Assess and Prioritize Regional Hub Capabilities• Evaluate Regional Hub Organizational and
Governance Models• Agree on next steps to assure project
implementation succeeds
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AgendaAgenda
• Welcome• Introductions• Hub Implementation Status• Best Practices Hub Research• Regional Intermediary Capabilities: Breakout 1
– Discussion– Report out
• Organizational Models: Breakout 2– Discussion– Report out
• Planning for next project steps
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Regional Economic OpportunityRegional Economic Opportunity
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SE MI: A Connected Region and EconomySE MI: A Connected Region and Economy
Highway and Rail Corridors
Map: Courtesy of Gallis and Associates
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Cities with SCM CapabilitiesCities with SCM Capabilities
City Supply Chain Management Capabilities
Memphis, TN Memphis was one of the first supply chain hubs building on its location as the global hub for Federal Express. The FedEx hub has attracted storage and processing facilities that can take advantage of the inbound and outbound movement of air freight. The educational needs of the region are supported strongly by programs at the University of Memphis.
Louisville, KY Louisville was the second major supply chain hub building on its location as the global hub for United Parcel Service. The UPS hub has attracted storage and processing facilities that can take advantage of the inbound and outbound movement of air freight. The educational needs of the region are supported strongly by programs at the University of Louisville.
Kansas City, MO Created an inter-modal hub including rail, motor, and air to facilitate movement and processing of goods throughout the central Midwest. The initiatives include a strong focus on education.
Chicago, IL Chicago has always been a major manufacturing and distribution center due to its proximity to inter-modal transportation services and its population density. While this will continue, Chicago locations are being challenged by other sites due to increasing congestion.
Columbus, OH Building on the Rickenbacker Airport and other inter-modal capabilities, Columbus has established itself as a distribution hub for fashion, electronics, and appliances. The initiatives include a strong focus on education.
Indianapolis, IN Indianapolis is positioning itself as a less congested alternative for Chicago as a distribution hub particularly for electronics and parts. Indianapolis is focusing on cross-country rail and truck movements. This initiative has some focus on education but not to the degree that Memphis, Louisville, Kansas City, and Columbus have.
SEMI/NWOH/SWON ?????????????????????????????
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TDL and Exports Strategy: Future Vision TDL and Exports Strategy: Future Vision
• World class cross-border distribution hub – Air freight to motor freight – Rail freight to motor freight– Value added services
• Lowest overall cost to serve for industry partners• Superior customer service for industry partners
and their respective customers• State of the art supply chain technology• Excellent management and labor talent • Win-win-win relationships with industry partners,
service providers, and supply chain hub
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TDL and Exports Strategy: SE MI AdvantagesTDL and Exports Strategy: SE MI Advantages
• Cross-border distribution hub away from congestion of Chicago-Toronto
• Trans-loading heavy imports from ocean ports with less congestion to U.S. using railroads
• Good airport, highway, and rail infrastructure with limited congestion
• Skilled Export and TDL management and labor talent is readily available
• Economical outbound motor carrier capacity
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The Bottom Line !The Bottom Line !
• Opportunity Assessment has re-enforced the economic development potential for the Hub– 66,000 new jobs created– Doing nothing may run the risk of additional jobs lost
• Maintaining momentum over the next few months will be critical to project success
• Each of us will play a key role to assure 66,000 new jobs are created…..starting today !
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Three Stages of SCM Economic ActivityThree Stages of SCM Economic Activity
Stage 1 (Current)
Economic activity associated with SCM
Stage 2 (+3 years)
Economic activity associated with SCM
following recovery
Stage 3 (+7 to10 years)
Enhanced economic activity associated with SCM scale
and industry attraction
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What Does it Take to Go from Stage 2 to Stage 3?What Does it Take to Go from Stage 2 to Stage 3?
Stage 2 (+3 years)
Economic activity associated with SCM
following recovery
Stage 3 (+7 to10 years)
Enhanced economic activity associated with SCM scale
and industry attraction
Stage 1 (Current)
Economic activity associated with SCM
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Target Industries: Cluster DescriptorsTarget Industries: Cluster Descriptors
• HEAVY: Heavy Manufacturing and industrial cluster attracted to hub for resource efficiency and differentiation– Automotive renewal– Alternative energy– Carbon fiber manufacturing– Chemical processing– Defense– Electronics – industrial
• LIGHT: Light Manufacturing and industrial cluster attracted to hub for resource efficiency and differentiation– Food processing– Medical technologies– Water technologies
• DISTRIBUTION: Warehousing and consumer based industry attracted to hub market location for distribution and value added services– Beverage and alcohol distribution– Retail importing and value add– Waste management
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Economic Evaluation: Heavy ManufacturingEconomic Evaluation: Heavy Manufacturing
Industry Stage 2 Economic
Forecast ($M)
Stage 3 Economic
Forecast with Hub
($M)
Increase Resulting from Hub
($M)
Stage 2 Job
Activity (000)
Stage 3 Job
Activity with Hub
(000)
Increase Resulting from Hub
(000)
Automotive renewal
5,084 6,609 1,525 62.7 81.5 18.8
Alternative energy
757 1,056 299 4.0 5.5 1.5
Chemical processing
6,682 7,717 1,035 56.6 65.4 8.8
Defense 3,739 4,461 722 24.0 28.7 4.7
Electronics -Industrial
4,069 5,250 1,181 22.0 28.4 6.4
Forestry and bio-fuels
919 1,231 312 2.8 3.8 1.0
Total 21,250 26,324 5,074 172.1 213.3 41.2
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SCM Industry Activity – Heavy ManufacturingSCM Industry Activity – Heavy Manufacturing
$ ?
Jobs ?
$ 21,250M
Jobs 172,100
$26,324M (23.8% increase)
Jobs 213,300 (23.4% increase)
Stage 1 (Current)
Economic activity associated with SCM
Stage 2 (+3 years)
Economic activity associated with SCM
following recovery
Stage 3 (+7 to10 years)
Enhanced economic activity associated with SCM scale
and industry attraction
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Economic Evaluation: Light Manufacturing, DistributionEconomic Evaluation: Light Manufacturing, Distribution
Industry Stage 2 Economic
Forecast ($M)
Stage 3 Economic
Forecast with Hub
($M)
Increase Resulting from Hub
($M)
Stage 2 Job
Activity (000)
Stage 3 Job
Activity with Hub
(000)
Increase Resulting from Hub
(000)
Food, beverage
9,550 10,285 735 82.6 89.0 6.4
Wholesale trade
4,573 6,127 1,554 20.0 26.8 6.8
Retail trade 5,123 6,864 1,741 15.1 20.3 5.2
Warehouse & storage
3,659 4,902 1,243 11.1 14.9 3.8
Waste management
2,946 3,572 626 15.2 18.5 3.3
Total 25,851 31,750 5,476 144.0 169.5 25.5
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SCM Industry Activity – Light Manufacturing/DistributionSCM Industry Activity – Light Manufacturing/Distribution
$ ?
Jobs ?
$ 25,851 M
Jobs 144,000
$ 31,750 M (22.8% increase)
Jobs 169,500 (17.7% increase)
Stage 1 (Current)
Economic activity associated with SCM
Stage 2 (+3 years)
Economic activity associated with SCM
following recovery
Stage 3 (+7 to10 years)
Enhanced economic activity associated with SCM scale
and industry attraction
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Total SCM Industry Economic ActivityTotal SCM Industry Economic Activity
$ ?
Jobs ?
$ 47,101 M
Jobs 316,100
$ 58,074 M (23.3% increase)
Jobs 382,800 (20.8% increase)
Stage 1 (Current)
Economic activity associated with SCM
Stage 2 (+3 years)
Economic activity associated with SCM
following recovery
Stage 3 (+7 to10 years)
Enhanced economic activity associated with SCM scale
and industry attraction
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Summary of Enhanced Economic ActivitySummary of Enhanced Economic Activity
Industry Cluster Increase in Economic
Development
Number of New Jobs Created
Heavy Manufacturing $5 Billion 41,200 New Jobs
Light Manufacturing and Distribution
$5.5 Billion 25,500 New Jobs
TOTAL Over $10 Billion Over 66,000 New Jobs
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Supply Chain Opportunity Assessment:Implementation of Findings – Work ActivitiesSupply Chain Opportunity Assessment:Implementation of Findings – Work Activities
• Piloting the Implementation Approach• Education, Sharing of Findings, and
Communications• Recommendation of Organization Model and
Intermediary• Recommendations for Long Term Sustainability
Model
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Supply Chain Opportunity Assessment:Implementation of Findings – Work ActivitiesSupply Chain Opportunity Assessment:Implementation of Findings – Work Activities
• Piloting the Implementation Approach– Select a company in a chosen industry to serve as the
pilot for supply chain strategy implementation– Identify key public and private stakeholders critical for
project design and implementation– Pilot the strategy implementation by designing and
implementing a supply chain solution for the chosen company
– Pilot the implementation of policies to assure pilot success
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Supply Chain Opportunity Assessment:Implementation of Findings – Work ActivitiesSupply Chain Opportunity Assessment:Implementation of Findings – Work Activities
• Piloting the Implementation Approach• Education, Sharing of Findings, and Communications
– Share findings with appropriate organizations– Conduct implementation workshops for interested and
impacted stakeholders– Develop program for ongoing communications
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Supply Chain Opportunity Assessment:Implementation of Findings – Work ActivitiesSupply Chain Opportunity Assessment:Implementation of Findings – Work Activities
• Piloting the Implementation Approach• Education, Sharing of Findings, and Communications• Recommendation of Organization Model and
Intermediary– Review examples of successful multi-jurisdiction, multi-state,
and multi-nation organizational models– Identify leader organization and governance to implement supply
chain strategy– Recommend Intermediary and Champion to pursue
implementation– Ensure capabilities of supply chain expertise, economic
development, collaboration and grantsmanship are embedded within the intermediary
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Supply Chain Opportunity Assessment:Implementation of Findings – Work ActivitiesSupply Chain Opportunity Assessment:Implementation of Findings – Work Activities
• Piloting the Implementation Approach• Education, Sharing of Findings, and Communications• Recommendation of Organization Model and Intermediary• Recommendations for Long Term Sustainability Model
– Determine appropriate organizational and staffing model to assure long term implementation success
– Implement economic development policies based on lessons learned from the pilot
– Develop long term sustainability model for ongoing operations of intermediary
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AgendaAgenda
• Welcome• Introductions• Hub Implementation Status• Best Practices Hub Research• Regional Intermediary Capabilities: Breakout 1
– Discussion– Report out
• Organizational Models: Breakout 2– Discussion– Report out
• Planning for next project steps
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TDL and Exports Hub Best Practices ResearchTDL and Exports Hub Best Practices Research
• Best Practices Hub Capabilities
• Best Practices Organizational and Governance Models
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TDL and Exports Hub CapabilitiesTDL and Exports Hub Capabilities
The Phase 1 Opportunity Assessment Concluded the Supply Chain Hub CapabilitiesShould Fit into the Following Four Competencies:
• Supply Chain Expertise
• Economic Development
• Strategic Infrastructure / Intermediary Funding
• Collaboration
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TDL and Exports Hub Capabilities from Best Practice ResearchTDL and Exports Hub Capabilities from Best Practice Research
• Supply Chain Expertise– Economic Competitiveness and Lowest Supply Chain
Cost to Serve– Supply Chain Sustainability– Infrastructure / Modal Support
• Economic Development– Competitive Tax Environment– Ability to Serve Global Markets
• Strategic Infrastructure / Intermediary Funding– Infrastructure Support and Capabilities
• Collaboration– Joint Commission or Authority– Strategic Alliances
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Hub Capabilities: Best Practices ResearchHub Capabilities: Best Practices Research
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Hub Capabilities: Best Practices ResearchHub Capabilities: Best Practices Research
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Best Practices Research Focused On The Following GeographiesBest Practices Research Focused On The Following Geographies
Geography Title Target Industry
Arkansas / Oklahoma Bi-State Metropolitan Planning Organization Retail
Chicago Chicagoland Chamber of Commerce Diverse
Columbus Columbus Region Logistics Council/Chamber and Rickenbacker Global Logistics Park
Appliance / Fashion
Georgia Georgia Center of Innovation Logistics (Page Siplon) State/Georgia Tech
Bioscience, Tech
Indianapolis Greater Indianapolis Chamber of Commerce,and Develop Indy and Conexus
Electronics
Kansas City KC SmartPort Fast Moving Consumer Goods
Louisville Greater Louisville Inc. Repair / Maintenance
Memphis Regional Logistics Council/Chamber Distribution
NW Indiana NW Indiana Forum
New York / New Jersey NY/NJ Port Authority Diverse
Toledo Regional Growth Partnership/Port Authority/TMACOG Glass, Plastic, Metal
Toronto City of Toronto and Invest Toronto Financial Services, Life Sciences
Windsor Port Windsor and Windsor – Essex Chamber of Commerce Eng, R&D, Agriculture, Tourism
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Target Industries for MI HubTarget Industries for MI Hub
• Heavy Manufacturing– Automotive renewal– Alternative energy– Carbon fiber manufacturing– Chemical processing– Defense– Electronics – industrial
• Light Manufacturing– Food processing– Medical technologies– Water technologies
• Distribution– Beverage and alcohol distribution– Retail importing and value add– Waste management
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Supply Chain ExpertiseSupply Chain Expertise
Descriptor SymbolAbove AverageAverageLaggingUnknown
GEOGRAPHIES
CAPABILITIES:
AR /
OKCh
icago
Colu
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City
Loui
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NY /
NJTo
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Win
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Supply Chain SustainabilityCust Service & ReliabilitySecurityGreen / Environ AspectsSupply Chain Skilled Labor
Economic CompetitivenessHub Operations CostHub Service LevelsIB / OB Shipping Balance
Infrastructure / Modal SupportIdentifying Strategic CorridorsLand & Facility AvailabilityTechnology Enablers
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Supply Chain Expertise – MI Hub RatingsSupply Chain Expertise – MI Hub Ratings
Descriptor SymbolAbove AverageAverageLaggingUnknown
CAPABILITIES: MI NotesSupply Chain SustainabilityCust Service & Reliability Strong position but costs and uncertainty increasingSecurity Consumers and regulators expecting increased securityGreen / Environ Aspects Firms strongly focus on low cost suppliersSupply Chain Skilled Labor Readily available labor
Economic CompetitivenessHub Operations Cost Higher cost to operate
Hub Service LevelsManagerial and skilled labor may create advantages; northern fringe location may inhibit access to entire U.S.
IB / OB Shipping Balance Trade imbalance; excess empty containers
Infrastructure / Modal SupportIdentifying Strategic Corridors Identified, but importance is unclearLand & Facility Availability Competitive real estate prices
Technology EnablersGood resources and capabilities: EDI, RFID, GPS tracking, demand, visibility systems, TMS, WMS, trade mgmt systems skills
Relative Importance
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Economic DevelopmentEconomic Development
Descriptor SymbolAbove AverageAverageLaggingUnknown
GEOGRAPHIES
CAPABILITIES:
AR /
OKCh
icago
Colu
mbu
sGe
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aIn
dian
apol
isKa
nsas
City
Loui
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emph
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Indi
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NY /
NJTo
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Win
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Ability to Service Global MarketsUnderstanding Global LandscapeUse of MarketingUS Border Trade CorridorNAFTA Transport LinksAccess to PortsCustoms & Related ServicesForeign Trade Zone Facilities
Competitive Tax ClimateTax Abatement and IncentivesProperty Taxes on EquipmentBusiness TaxIncome Tax
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Economic Development – MI Hub RatingsEconomic Development – MI Hub Ratings
Descriptor SymbolAbove AverageAverageLaggingUnknown
CAPABILITIES: MI NotesAbility to Service Global MarketsUnderstanding Global Landscape Strong understanding of global supply chain operationsUse of Marketing Need for better communicationUS Border Trade Corridor Some infrastructure and institutional barriers for US / Canada borderNAFTA Transport Links Access to multiple transportation modes but limited integrationAccess to Ports Provides competitive option between U.S. eastern ports and CanadaCustoms & Related Services Services already in place but benefits not fully realizedForeign Trade Zone Facilities High quality, underutilized capability
Competitive Tax ClimateTax Abatement and Incentives Competitive, targetedProperty Taxes on Equipment Relatively highBusiness Tax Gross receipts intensity and surcharge issuesPersonal Income Tax Relatively low and flat
Relative Importance
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Strategic Infrastructure / Intermediary FundingStrategic Infrastructure / Intermediary Funding
Descriptor SymbolAbove AverageAverageLaggingUnknown
GEOGRAPHIES
CAPABILITIES:
AR /
OKCh
icago
Colu
mbu
sGe
orgi
aIn
dian
apol
isKa
nsas
City
Loui
svill
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emph
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Indi
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NY /
NJTo
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Toro
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Win
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Infrastructure DesignAirport CapabilityInterstate HighwaysRailroal NetworkIntermodal CapacityDistribution FacilityPort CapabilityNetwork Resiliency
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Strategic Infrastructure / Intermediary Funding – MI Hub RatingsStrategic Infrastructure / Intermediary Funding – MI Hub Ratings
Descriptor SymbolAbove AverageAverageLaggingUnknown
CAPABILITIES: MI NotesInfrastructure Design
Airport CapabilityDTW airport capacity; frequent direct Asian flights; available capacity for dedicated and belly cargo freight
Interstate HighwaysNetwork of I-75, I-94, and I-69 is less congested than Chicago’s, great connectivity, but aging
Railroad NetworkUS-Canada railroads pass through Michigan; shipper access to NS and CSX through Conrail; access to U.S. East coast and Chicago
Intermodal Capacity Several dispersed facilities with excess capacityDistribution Facility Good private, leased, and public warehouse capacityPort Capability Mostly bulk shipping and in need of fundingNetwork Resiliency Infrastructure developed, but in need of updating
Relative Importance
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CollaborationCollaboration
Descriptor SymbolInnovativeAdequateLaggingUnknown
GEOGRAPHIES
CAPABILITIES:
AR /
OKCh
icago
Colu
mbu
sGe
orgi
aIn
dian
apol
isKa
nsas
City
Loui
svill
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emph
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Indi
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NY /
NJTo
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Win
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Strategic AlliancesStreamlined GovernmentFostering InnovationCommunity InvolvementSupplier CapabilitiesEngaging Federal GovernmentParterning with EducationLeverage Business Partnership
Joint Commission or AuthorityFinancial CapitalInfrastructure BankStrategic Transportation PlanInformation Sharing
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Collaboration – MI Hub RatingsCollaboration – MI Hub Ratings
Descriptor SymbolInnovativeAdequateLaggingUnknown
CAPABILITIES: MI NotesStrategic AlliancesStreamlined Government Complex business taxes and lawsFostering Innovation Need for better promotion of collaboration Community Involvement Need for better communication and outreachSupplier Capabilities Strong supply baseEngaging Federal Government Understanding better role and responsibilitiesParterning with Education Need for additional collaboration projectsLeverage Business Partnership Better use of resources
Joint Commission or AuthorityFinancial Capital Lack of venture capitalists and angel fundingInfrastructure Bank Does not existStrategic Transportation Plan Transportation dollars prioritized with local considerationsInformation Sharing Need for additional opportunities and resources
Relative Importance
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AgendaAgenda
• Welcome• Introductions• Hub Implementation Status• Best Practices Hub Research• Regional Intermediary Capabilities:
Breakout 1– Discussion– Report out
• Organizational Models: Breakout 2– Discussion– Report out
• Planning for next project steps
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TDL & Exports Regional Intermediary Design – Break Out Session OneTDL & Exports Regional Intermediary Design – Break Out Session One
Small group breakout #1: Assess and Prioritize Regional Intermediary Capabilities
• What capabilities are essential to achieve the economic development opportunities? What is their relative importance?
• What are the current gaps for implementing the prioritized hub capabilities?
• How can we differentiate our hub from other regions based on the implementation of the prioritized capabilities?
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Breakout Group AssignmentsBreakout Group Assignments
Each Group will explore the Hub Capabilities associated with the following Competencies:
• Supply Chain Expertise – Group A
• Economic Development – Group B
• Strategic Infrastructure & Intermediary Funding – Group C
• Collaboration – Group D
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AgendaAgenda
• Welcome• Introductions• Hub Implementation Status• Best Practices Hub Research• Regional Intermediary Capabilities: Breakout 1
– Discussion– Report out
• Organizational Models: Breakout 2– Discussion– Report out
• Planning for next project steps
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TDL and Exports Hub Best Practices ResearchTDL and Exports Hub Best Practices Research
• Best Practices Hub Capabilities
• Best Practices Organizational and Governance Models
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Governance ModelsGovernance Models
• Port Authority Model
• Port Authority “Lite” Model
• Public / Private Partnership Model
• Industry Collaboration Model
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Attributes for Organizational ModelsAttributes for Organizational Models
• Government Regulatory Power• Governance• Funding• Expertise focus• Multi-state / Multi-nation Collaboration• International or Export Focused• Reliance on Smart Zones• Foreign Investments
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Attributes Aligned to Organizational Models Attributes Aligned to Organizational Models
Port Authority Port Authority Lite Public Private Partnership
Industry Collaboration
Government Regulatory Power
Governance
Funding
Expertise focus
Multi-state / Multi-nation Collaboration
International or Export Focused
Reliance on Smart Zones
Foreign Investments
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General Port Authority CharacteristicsGeneral Port Authority Characteristics
• A government-created, owned, and governed organization• With or without private sector representation (not that material to the
powers)• With a dedicated source of revenue(s) for its operations (from government
budgets or from a tax or fee stream)• Ability to tax, or to go to the taxpayers for taxes• Ability to assemble and own land for development and development deals
within its territory or jurisdiction• Ability to design incentives or use incentives designed by its government
owners• Ability to bond• Ability to impose user fees• Ability to own facilities• Ability to operate facilities• Ability to select and authorize supply chain/TDL operators within its
boundaries• Ability to create and operate foreign trade zones• Ability to market itself to shippers and their carriers• A planning capability (independent of but connected with, the council of
governments)
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Port Authority ModelPort Authority Model
• NY / NJ Port Authority• Governor of each state appoints 6 members that serve
for 6 years• Funded from revenue of facility operation, bridge / tunnel
tolls, airport and bus user fees, rail fares, rent from facilities, consumer services, and from retail stores
• Role– Promote and protect the commerce of the Port District and
undertake improvements
• Interface with private sector in form of regulatory body and collector of fees
• Powers include collecting fees and approving / managing port improvements
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Port Authority Model (NY/NJ Port Authority)Port Authority Model (NY/NJ Port Authority)
• Ability to own and develop facilities• Ability to select/authorize supply chain/TDL operators
within its boundaries• Ability to create and operate foreign trade zones• A planning capability (independent of but connected with
the council of governments)
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Port Authority “Lite” ModelPort Authority “Lite” Model
• Detroit and Toledo Port Authorities• Primarily public sector governance• Limited regulatory powers• Revenue growth driven by export and import• Limited geographic scope• Limited mode scope• Funded from use of modes within Port Authority
control
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Public / Private Partnership ModelPublic / Private Partnership Model
• KC Smartport• Board Consists of Public (DOT, MPO, Airports, Econ
Develop Corps), Private (TDL, Consultant, Chambers) and Universities from two states
• Funded in part by dues or donations (“investments”) from board members’ organizations
• Roles– Market– Site Location Assistance (Real Estate and Transportation)– Advocacy for Global Logistics Mindset– Transportation Resources Connections– Supply Chain Education– Supply Chain Data Exchange
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Industry Collaboration ModelIndustry Collaboration Model
• Example – Columbus 2020• Objectives
– Add 180,000 jobs by 2020– Increase per capita personal income by 40% by 2020– Attract capital investment of $10 billion– Become a recognized national leader in economic
development by 2020
• Focus on value added potential rather than infrastructure
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Industry Collaboration Model (Columbus)Industry Collaboration Model (Columbus)
• Initial organizational representation– Columbus Partnership– Columbus Chamber– Battelle– NetJets– Cardinal Health
• Columbus MSA– Licking– Fairfield– Pickaway– Madison– Union– Delaware– Morrow
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Industry Collaboration Model (Columbus)Industry Collaboration Model (Columbus)
• Pillars of activity– Retention and expansion of existing businesses– Attraction of major employers to establish operations
in Central Ohio– Creation of more commercial enterprises by
leveraging research assets– Support of civic infrastructure and political conditions
that enhance the economic development environment
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Industry Collaboration Model (Columbus)Industry Collaboration Model (Columbus)
• How different than past efforts– Shared community vision and goals– Implementation is led collaboratively by individuals from
throughout the region– Goals have clear metrics to track progress– Developed a clear set of strategies and initiatives based on
goals– Organized with a central chief economic officer for the region– Significantly increase both the financial and professional
resources dedicated to executing the strategic vision– Failure is not an option
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Industry Collaboration Model (Columbus)Industry Collaboration Model (Columbus)
• Successful programs require:– A clear regional vision with community buy-in– Active leadership engagement in all phases of the effort, not just
the upfront strategy– A sense of urgency that acts as a forcing mechanism for change
and coordination– Quality of life that reinforces economic-development efforts and
regional prosperity– Belief that workforce development and K-12 education, which
strengthen long-term regional health and talent availability, helps address reputation as a place for businesses
– University involvement in research, commercialization and talent development
– Multi-generational commitment to economic development and a systematic approach
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Attributes Aligned to Organizational ModelsAttributes Aligned to Organizational Models
Port Authority Port Authority Lite Public Private Partnership
Industry Collaboration
Government Regulatory Power
Extensive Limited
Governance Government Industry collaboration
Funding Tax based Value add or foundation
Expertise focus Public sector infrastructure
Supply chain integration
Multi-state / Multi-nation Collaboration
Numerous cases Limited evidence
International or Export Focused
Extensive Reduced
Reliance on Smart Zones
Yes Yes
Foreign Investments
Extensive Limited
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Hub Organization Model TypesHub Organization Model Types
GEOGRAPHIES
CAPABILITIES:
Port AuthorityPort Authority "Lite"Public / PrivateIndustry Collaboration
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AgendaAgenda
• Welcome• Introductions• Hub Implementation Status• Best Practices Hub Research• Regional Intermediary Capabilities: Breakout 1
– Discussion– Report out
• Organizational Models: Breakout 2– Discussion– Report out
• Planning for next project steps
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TDL & Exports Regional Intermediary Design – Break Out Session TwoTDL & Exports Regional Intermediary Design – Break Out Session Two
Small group breakout #2: Evaluate and Recommend Hub Organizational Model
• Validate attribute alignment for the breakout organizational model
• Which combination of attributes are appropriate for the region?• What are the strengths and weaknesses of the organizational
model?• What refinements or extensions would be necessary?• Who are the stakeholders and/or Board members?• How does the model interface with industry and government?
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Breakout Group AssignmentsBreakout Group Assignments
Each Group will explore the Hub Organizational Model Concepts associated with the following Model Types:
• Port Authority Model – Group A
• Port Authority “Lite” Model – Group B
• Public/Private Partnership Model – Group C
• Industry Collaboration Model – Group D
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AgendaAgenda
• Welcome• Introductions• Hub Implementation Status• Best Practices Hub Research• Regional Intermediary Capabilities: Breakout 1
– Discussion– Report out
• Organizational Models: Breakout 2– Discussion– Report out
• Planning for next project steps
- 68 -
TDL & Exports Regional Intermediary DesignTDL & Exports Regional Intermediary Design
Preparation for Workshop Two:
April 29, 2011 at MSU Detroit Center
Workshop Two topics:• Validate necessary hub capabilities to assure project success• Recommend hub organizational and governance model• Develop plan to work with pilot companies towards implementation
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TDL & Exports Regional Intermediary DesignTDL & Exports Regional Intermediary Design
Workshop Participant Feedback