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The Importance of Freight Movement to Ohio's Economy

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2009 Ohio Conference on Freight

September 22, 2009

Hilton Toledo Inn

The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services.


Mark Barbash

Assistant Director and Chief Economic Development Officer

Ohio Department of Development


Looking Toward the Future

• Ohio Department of Development Strategic Plan makes

a commitment to Logistics and Distribution as a critical

targeted industry.

The State of Ohio and the Federal Government are

partnering to make strategic investments in Logistics and

Distribution.

There are important challenges and opportunities facing

the industry as we move forward.


Our strengths in logistics and transportation

make Ohio an ideal location for any business.

“Our Toledo sorting hub and warehouse facility is the heart of an international

logistics solution network. Ohio’s world-class infrastructure helps us rise to the

toughest transportation challenges.”

- Steve Grier, Vice President, Transportation Hub Operations, BAX Global

Inc.

“Located in the middle of the North American population, Ohio offers superior

distribution opportunities throughout the United States and Canada. This strategic

location is supplemented by an established logistics infrastructure including

international airports, an extensive highway network and expansive railroad

service”

- Elaine Roberts, President and CEO, Columbus Regional Airport Authority


Ohio Quick Facts

• Air: Ohio is 4th in the nation in airports with 519. That includes 180 public airports,

six international airports, and three air cargo hubs.

• Rail: Ohio is 4th in active rail lines, with 5,350 miles and 36 freight railroads. That

includes major lines from CSX and Norfolk Southern.

• Port: Ohio is 4th in the nation in maritime tonnage moved. The state has nine ports

on Lake Erie, 16 terminals on the Ohio River, and 700 miles of navigable waterways.

• Road: Ohio is 6th in the nation in interstate highways (1,574 miles; eight interstate

highways)


Ohio’s Airports & Major Highways


Ohio’s Port Authorities


Ohio’s Rail Lines


Ohio Logistics and Distribution Stimulus



$100 million available for projects that expand

connections to logistics and intermodal centers,

improve the flow of freight, and increase access

to new markets.

To date, $48.1 million has been awarded.

Sample Projects

Lucas County Improvement Corporation - $7.5 million to further develop

Midwest Terminals multimodal capabilities to improve rapid freight loading and

unloading at The Port of Toledo.

Bluegrass Farms of Ohio, Inc. - $7.5 million to develop the Central Ohio

Logistics Center, an intermodal facility in the City of Jeffersonville (Fayette

County).


Federal Stimulus

• Funding: $774 million from the

American Recovery and Reinvestment

Act

• Projects: 149 transportation

infrastructure projects across the state

• Uses:

– improve the flow and safety of

Ohio’s highways

– rebuild historical bridges

– make travel more efficient on

Ohio’s railways, transit water, and

in our airports


Transportation Investment Generating Economic

Recovery (TIGER) Grant Applications

• American Recovery and Reinvestment Act TIGER Discretionary

Grant Program:

– Funds major capital investments in surface transportation, including

highway and bridge projects, improvements at air or water ports, public

transportation, and passenger and freight rail projects.

– Priority given to projects that can be completed by February 2012 and

include as job creation, economic stimulus, innovation, and partnership.

• Nine applications submitted to U.S. Department of Transportation

this month.

• Seeking a total of $587,899,855 in stimulus funding.


TIGER Grant Application:

Toledo-Lucas County Port Authority Dredge Purchase

Why:

• Reducing dredging from Maumee Bay and the ship channel in the

Maumee River threatens the very existence of the port.

The purchase of dredging equipment to maintain the channel and

berth depth of Toledo port terminals is critical for this inland seaport

and northwest Ohio’s gateway to global commerce.

Request:

• This request of $10.8 million in TIGER Grant funds will be used to

leverage $8 million/year in local operating costs and $12 million in

already-approved Ohio stimulus-funded projects.


Job Ready Sites

• Goals:

– Bolster Ohio’s current inventory of sites available for future development

– Promote reinvestment and reuse of property

– Leverage the state and local communities’ previous investment in infrastructure

– Foster regional cooperation and economic growth strategies

– Encourage sustainable development

Sample Project

Lake Erie Port Manufacturing and Industrial Center – $5 million was

awarded to improve the former Chevron site in Toledo. The project will involve

dredging for a deep sea port along the Maumee River and infrastructure

improvements on the 181-acre site making the Toledo Port the largest on the

Great Lakes.


Partnerships

• Ohio Department of Development – Ohio Department of

Transportation

– ODOT 21st Century Transportation Task Force Report

– Ohio Ambassador Program

– Transportation Futures Plan

• Ohio Department of Development – Ohio Rail Development

Commission

– Partners in advising on economic development issues and connecting

rail projects to economic development priorities.

• Ohio Department of Development – Ohio’s Port Authorities

– Collaboratively invest in near- and long-term projects.


Challenges and Opportunities

• Ohio’s manufacturing future

• Cost to update aging

infrastructure

• Understanding the

interactivity between modes

of transportation

• Future of energy sources and

costs

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