Southwestern Illinois Freight Transportation

Study

May 18, 2015

TranSystems with GKSF Global Research

Welcome

Mark Harms SITE Committee Chair

Ellen Krohne Leadership Council

Sara Clark TranSystems

Joe Geraty GKSF Global Research

Background

Southwestern Illinois Transportation Enhancement Initiative

Identify quantitative means for Southwestern Illinois to understand its

position in the marketplace and evaluate key performance indicators to

prioritize areas of investment.

Purpose of Study

Role of Stakeholders

FEEDBACK IDEAS ADVOCATE

…understand its position in the marketplace and evaluate key performance indicators… Freight Flow Outlook Freight Infrastructure Inventory Market Survey of Industry Representatives Comparative Cities Review

4th 3rd 8th 4th

Top 10 Inland Hub Ranking

Domestic Inbound 47.0%

Domestic Outbound

44.9%

Export* 6.4%

Import* 1.6%

Study Area: St. Louis MO-IL CSA (IL Part)

Estimated Freight in 2012: 95 Million Tons

Truck 33.4%

Rail 20.3%

Pipeline 32.3%

Water 11.8%

Multiple Modes 2.1%

Other 0.2%

Air 0.0%

Study Area: St. Louis MO-IL CSA (IL Part)

Distribution by Transport Mode

* Import and export shipments are understated as some international cargo moves as domestic freight; for example, a domestic shipment from an import distribution center in Los Angeles to St. Louis.

Lower Value

Coal, Grain, Liquids

Strong presence in refinery, pipeline and liquid terminals

Higher Value

Warehouseable, Manufactured

Greater advantage to capture growth with available land over Missouri

79%

21%

Maritime Gateway Asian Trade of

Consumer Products

Maritime Gateway European Trade of Consumer Products

Bulk Gateway Critical for

Export Shipments

Emerging Gateway Crude Dominant, Growing Latin American Trade

Crossborder Gateway Strong Economic

Recovery

Crossborder Gateway Dominant in

Automotive Parts

Illinois

FY 2013-2018 State Program Distributions

$6.622 Billion

System Maintenance 45% Bridge Maintenance 23%

Congestion Mitigation 21% System Expansion 11%

Customers

Labor

Infrastructure

Institutional

300-400 Mile Service Area

Large and talented pool, driven by manufacturing history

Presence of all modes: air, rail, truck, barge, parcel package

Generally equal tax incentives, need to improve business-friendly nature

Location Selection Criteria: Retail and Manufacturing

Instability = Contingency Planning

Truck Shortages Labor Disruptions Fuel Price Volatility

Cargo Routing Houston

Modal Choice IM vs. Truck

Peer Comparisons

209

131

119

109

96

76

St. Louis

Indianapolis

Kansas City

Nashville

Columbus

Memphis

Freight Volume (Tons)

520

629

731

912

987

997

Indianapolis

St. Louis

Columbus

Nashville

Kansas City

Memphis

Truckload Cost to Chicago

Southwest Illinois is Competitive with its Peers

Identify quantitative means for Southwestern Illinois to understand its

position in the marketplace and evaluate key performance indicators to

prioritize areas of investment.

Four Takeaways 1.The greater St. Louis region, including Southwestern Illinois, ranks as the fourth largest inland hub in the nation

2.Infrastructure investment should consider emerging gateways including, Latin America

3.Southwestern Illinois need to become a part of shipper contingency plans

4.Promotion of Southwestern Illinois needs to show advantages over other regions