Transportation Infrastructure Improvement Study for the Greater Columbus Inland Port Program
Prepared for Mid-Ohio Regional Planning Commission June 25, 1994 Final Report ------------------------------------------------------------------- Transportation Infrastructure Improvement Study for the Greater Columbus Inland Port Program Prepared by Cambridge Systematic, Inc. in association with Transmode Consultants, Inc. URS Consultants, Inc. Moody/Nolan - Ltd., Inc. Prepared for Mid-Ohio Regional Planning Commission June 25, 1994 Final Report ------------------------------------------------------------------- Transportation Infrastructure Improvement Study for the Greater Columbus Inland Port Program Prepared by ------------------------------------------------------------------- Cambridge Systematic, Inc. in association with Transmode Consultants, Inc. URS Consultants, Inc. Moody/Nolan - Ltd., Inc. Inland Port Infrastructure Study Table of Contents Preface. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i Executive Summary. . . . . . . . . . . . . . . . . . . . . . . .ES-1 1.0 Background. . . . . . . . . . . . . . . . . . . . . . . . . 1-1 1.1 Concept of the Inland Port . . . . . . . . . . . . . . 1-1 1.2 Opportunity of the Greater Columbus Inland Port. . . . 1-5 2.0 Findings. . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 2.1 Columbus is Well Located to be a Distribution Center for the Midwest. . . . . . . . . . . . . . . . . . . . . . 2-1 2.2 Columbus Has a Competitive Advantage Compared to Other Cities . . . . . . . . . . . . . . . . . . . . . . . . 2-3 2.3 Columbus is Well Located on National Highway, Rail and Air Transportation Networks. . . . . . . . . . . . 2-6 2.4 Columbus is Served by a Good Logistics Network . . . .2-13 2.5 Other Advantages . . . . . . . . . . . . . . . . . . .2-19 3.0 Forecasts . . . . . . . . . . . . . . . . . . . . . . . . . 3-1 3.1 Introduction . . . . . . . . . . . . . . . . . . . . . 3-1 3.2 Forecast of the Economy of the Columbus Area . . . . . 3-1 3.3 Forecasts of Truck, Air and Rail Intermodal Freight in the Columbus Area. . . . . . . . . . . . . . . . . . . 3-4 3.4 Forecasts of Warehousing and Distribution. . . . . . .3-11 4.0 Implications of Forecasts for Infrastructure Requirements 4-1 4.1 Introduction 4-1 4.2 Intermodal Rail Terminal Requirements 4-1 4.3 Aviation Requirements 4-5 4.4 Truck Requirements 4-9 4.5 Warehouse/Distribution Requirements 4-11 5.0 Recommendations . . . . . . . . . . . . . . . . . . . . . . 5-1 5.1 Introduction . . . . . . . . . . . . . . . . . . . . . 5-1 5.2 Initiatives to Increase Freight and Intermodal Traffic in the Columbus Area . . . . . . . . . . . . . 5-1 5.3 Infrastructure Improvements 5-7 5.4 Regulatory and Other Considerations. . . . . . . . . .5-20 5.5 Institutional Considerations . . . . . . . . . . . . .5-24 ------------------------------------------------------------------- Cambridge Systematic, Inc. i 6115 Inland Port Infrastructure Study Table of Contents (continued) 6.0 Conclusions. . . . . . . . . . . . . . . . . . . . . . 6-1 6.1 Overview . . . . . . . . . . . . . . . . . . . . . 6-1 6.2 Transportation improvements. . . . . . . . . . . . 6-2 6.3 Economic Benefits. . . . . . . . . . . . . . . . . 6-3 6.4 Recent Accomplishments . . . . . . . . . . . . . . 6-4 6.5 Critical Next Steps. . . . . . . . . . . . . . . . 6-5 ii Cambridge Systematic, Inc. 6115 Inland Port Infrastructure Study List of Tables 2.1 Population, Employment and Other Characteristics Columbus Trade Areas, 1995 . . . . . . . . . . . . . . 2-2 2.2 Comparison of Market Areas Within 250 Miles of Selected Cities (1995) . . . . . . . . . . . . . . . . 2-5 3.1 Population and Employment in Columbus and Its Trade Area, 1990-2010. . . . . . . . . . . . . . . . . . . . . . . 3-2 3.2 Summary of Freight and Warehouse/Distribution Forecasts Columbus Area, 1990-2010 . . . . . . . . . . . . . . . 3-5 3.3 Summary of Forecasts for the Columbus Area Base Case, High and Low Alternatives, 1993 and 2010 . . . . . . . 3-8 4.1 Intermodal Rail Terminal Capacity and Forecasts Columbus Area, 1993 and 2010 . . . . . . . . . . . . . 4-2 4.2 Air Freight, Port Columbus International Airport and Rickenbacker International Airport, 1993 and 2010. . . 4-6 4.3 Rickenbacker International Airport/Rickenbacker Air Industrial Park, 1981-1994 . . . . . . . . . . . . . . 4-7 4.4 Trucking: Truckload Equivalents and Movements Columbus Area, 1993 and 2010 . . . . . . . . . . . . .4-10 4.5 Warehouse/Distribution Space Requirements Columbus Area, 1993 and 2010 . . . . . . . . . . . . .4-12 Cambridge Systematic, Inc. iii Inland Port Infrastructure Study List of Figures 1.1 Goods Movement - Greater Columbus Inland Port. . . . . 1-2 1.2 Intermodal Facilities and Major Transportation Routes (Columbus Area). . . . . . . . . . . . . . . . . . . . 1-4 2.1 500 Mile Columbus Eastern U.S. Distribution Area . . . 2-4 2.2 250 Mile Columbus' Midwest Distribution Area . . . . . 2-4 2.3 Population in 250 Mile Radius Market Areas - Columbus and Competing Cities, 1995 and 2010. . . . . . . . . . . . 2-7 2.4 Roadway Corridors Serving the Columbus Area and Ohio . 2-9 2.5 Rail Service between Columbus and Large Container Ports Showing Key Gateways for Columbus. . . . . . . . . . .2-10 2.6 Full Container Movements between Columbus and Selected Ports, 1992 . . . . . . . . . . . . . . . . 2-12 Cambridge Systematic, Inc. v Inland Port Infrastructure Study Preface - Objectives The overall objective of the Transportation Infrastructure Improvement Study for the Greater Columbus Inland Port Program is to recommend actions that can be taken to strengthen the competitive position of Columbus by facilitating faster, more efficient and lower cost transportation of freight. Special emphasis is given to intermodal transportation, especially to intermodal rail service and facilities as well as to air cargo and trucking. Three specific objectives are to identify: 1. Transportation Infrastructure Improvements that will enhance the development of the Inland Port. This includes projects that will complement the expansion of intermodal terminals, such as Conrail's Westbelt Trailvan Intermodal Terminal at its Buckeye yard, Norfolk Southern's Discovery Park Intermodal Terminal at Watkins Road, Honda/Conrail's Marysville Intermodal Terminal, Rickenbacker International Airport, and Port Columbus International Airport. It also includes projects that will improve truck access to the areas in the vicinity of these intermodal facilities as well as improvements to roads and other transportation facilities in the metropolitan area. 2. Freight Transportation Service Improvements that will attract larger volumes of freight and result in better service. This includes identifying new types of rail service, providing better service between Columbus and rail and air gateways (such as Chicago), encouraging regional shippers to "pool" some of their shipments (especially backhauls) and thereby to attract more frequent and efficient service. It also includes recommending improvements in freight facilitation services, such as customs clearance, that will expedite receiving and shipping goods internationally. 3. Economic Benefits that will result from the Inland Port development program. These include new job opportunities for people living in the Columbus area. Jobs will be generated in transportation and distribution activities, as well as in expanding and new businesses which benefit from better transportation services. ------------------------------------------------------------------- Cambridge Systematic, Inc. vii Inland Port Infrastructure Study - Scope The scope of the study includes: 1. Review of the Intermodal Facilities in the Columbus area. This includes the intermodal rail terminals operated by Conrail and Norfolk Southern, the two major airports, warehouse/distribution and other transportation-related facilities. 2. Analysis of Rail, Highway and Air Transportation Networks serving the Columbus area. This includes the major routes, operators such as rail, truck and airline companies, and identification of transportation "gateways." Characteristics of routes are identified, such as the capacity of highways and rail lines capable of handling double-stack service. 3. Analysis of Shipping Patterns. This includes how selected shippers transport goods to and from their plants, the type and characteristics of the goods, their origins and destinations, transportation priorities (speed, cost, reliability of service), and adequacy of locally available freight services. This information was obtained in interviews with companies and several meetings with groups of Columbus shippers. 4. Forecasts of the Local and Regional Economy. Forecasts to 2010 are made for the economy of the Columbus area which are consistent with those of the Mid-Ohio Regional Planning Commission (MORPC), and for the Columbus hinterland (including Mid-Ohio), and for the area within 250 miles of Columbus (about a one-day round trip by truck). The characteristics of these hinterlands are used in forecasting freight volumes originating and terminating in the Columbus area. Fast growth sectors that are especially transportation dependent (such as warehousing) also are identified. 5. Forecasts to 2010 of Freight Handled by Rail, Truck and Air in the Columbus area. The volume of freight is projected using a proprietary transportation-economic forecasting model. Volumes are forecast for intermodal rail terminals and airports. Daily numbers of originating, terminating, and through truck trips in the Columbus area are forecast. These are compared with national trends to be sure they are consistent and discussed with railroads, trucking companies, and airlines. A special analysis of the development potential for warehouse/distribution activities was also made. 6. Identify Future Transportation Infrastructure Needs by comparing the capacity of transportation facilities with projected demand. In the case of intermodal rail terminals, the forecasts are compared with existing ------------------------------------------------------------------- viii Cambridge Systematic, Inc. Inland Port Infrastructure Study capacity, and planned expansions. Constraints on expansion are identified, as well as access road improvements that are needed to handle projected volumes of truck traffic. 7. Estimate Economic Impacts Resulting from the Implementation of the Inland Port Program. These include the numbers of jobs directly generated in transportation and related sectors, the increase in business, and the benefits to companies in the Columbus area. The advantages of the Inland Port program in facilitating the expansion of existing companies and attracting new businesses that are significantly dependent on fast, reliable and efficient transportation service are identified. 8. Recommend Implementation Steps. These include the timing, scale and expansion of existing intermodal rail yards, airports and warehouses that will be undertaken by the private sector. Specific transportation infrastructure projects that will complement expansion for intermodal facilities and of freight movement in the Columbus are suggested. These focus on three key districts, the Alum Creek Rickenbacker District, West Side District, (Conrail Intermodal Terminal) area and the Port Columbus District. Recommendations are also made for other improvements, such as completion of I-670. Suggestions are made for the roles of various agencies in implementing the Inland Port program. ------------------------------------------------------------------- Cambridge Systematic, Inc. ix Inland Port Infrastructure Study Executive Summary - Introduction Columbus has the opportunity to become the first large inland port in the United States. It is has an excellent location, the time is right, and it has the basic transportation facilities and services that are required. The inland port will meet the rapidly expanding needs of businesses and generate economic growth in the Columbus area. With astute planning, concerted efforts by the freight community, support by government institutions and aggressive marketing, Columbus can become a major multimodal transportation distribution center serving the Midwest and part of Canada. The overall goal of the Greater Columbus Inland Port is to accelerate economic growth in Columbus by improving transportation service and facilities. This will benefit existing businesses and help to attract new ones by providing better access to national and international markets, making transportation more efficient and meeting the increasingly demanding freight logistics requirements of today's and tomorrow's businesses. - Advantages of Columbus Columbus has several advantages that provide it with a good opportunity to become an inland port. These include: - A strategic location in the heart of the Midwest. Within a one-day oneway truck drive (500 miles) is about half of the population, employment and retail purchasing power in the nation. Columbus' hinterland (within about a 250 mile radius or a one- day round trip) includes approximately one-tenth of the nation's population and productive resources. - A hinterland that has more population, businesses and purchasing power than the hinterlands (within 250 miles) of other major Midwestern cities including Cleveland, Cincinnati, Pittsburgh, and Indianapolis. - A good location on major interstate highways 1-70 (east-west) and I-71 (northeast-southwest); service by three rail lines, Conrail, Norfolk Southern an CSX with three intermodal terminals; and service by two ------------------------------------------------------------------- Cambridge Systematic, Inc. ES-1 Inland Port Infrastructure Study airports, Port Columbus International Airport, which serves 42 cities with direct daily passenger flights, and Rickenbacker International Airport, which handles large volumes of international air freight. - Area businesses have more choices of mode for transporting goods than those located in other Midwestern cities, except gateways like Chicago. Goods can reach Columbus from mainland Asian ports, such as Hong Kong, in 14 to 16 days by container ship and double-stack train. From Europe, shipment times are about 10 to 12 days. By air, goods from all over the world can reach Columbus' Rickenbacker International Airport, clear U.S. Customs, and be delivered to receivers within one or two days. - Columbus has other advantages, such as being the only U.N.-sanctioned Trade Point in North America, having an active foreign trade zone, and a good business climate. More than 20 international trade consultants, 38 freight forwarders and Customs brokers, representatives of steamship companies, numerous banks, attorneys, translators, and other services that facilitate international and domestic freight transportation are located in Columbus. - Intermodal Facilities and Related Services - A good location on interstate highways I-70 (east- west) and I-71 (northeast-southwest). There is good truck access over these and other routes, such as US 23, US 33 and SR 16, to most large Ohio cities and to much of the Midwest. - Exceptionally good intermodal rail terminal facilities. These include Norfolk Southern's Discovery Park Intermodal Terminal at Watkins Road, Conrail's Westbelt Trailvan Intermodal Terminal at its Buckeye Yard at Roberts Road, and the Marysville Honda/Conrail Terminal. Together, these terminals handle 180,000 containers and trailers annually, which is more than any other Ohio city and more than most other Midwest cities except Detroit, Chicago, and St. Louis. - Very good aviation capacity for handling air cargo and passengers. Port Columbus International Airport was the fastest growing commercial passenger airport in the United States in 1992. It also handles packages, air freight and mail. Rickenbacker International Airport has the longest runways in Ohio and handles all types of cargo aircraft from all over the world. With 5,000 acres, more than 4.3 million square feet of warehouse ------------------------------------------------------------------- ES-2 Cambridge Systematic, Inc. Inland Port Infrastructure Study space, an operational Foreign-Trade Zone, and rail spur, it is an important and rapidly expanding intermodal center. - A large freight transportation sector which includes more than 86 million square feet of warehouse/distribution space, over 130 truck lines, more than 38 freight forwarders, representatives of major steamship lines, and numerous other supporting services. - Forecasts of the Economy, Freight and Warehouse/ Distribution in the Columbus Area Economy The six-county Columbus metropolitan area has been and is expected to continue to be one of the fastest growing areas in the Midwest. Between 1990 and 2010: - Population is expected to increase from 1,377,000 to 1,650,000 (by nearly 20 percent); and - Employment is expected to increase from 712,000 to 958,000 (by 35 percent). This rapid growth will generate strong local demand for freight shipments into and out of the Columbus area, adding to that generated in its expanding hinterland. Truck, Air and Rail Intermodal Freight in the Columbus Area Forecasts of truck, air, and intermodal rail freight in the Columbus area indicate that between 1993 and 2010: - The number of intermodal containers and piggyback trailers handled at the three intermodal rail yards will more than double, increasing from 180,000 to 390,000 annually; - Air cargo and mail loaded and unloaded at Port Columbus International Airport and at Rickenbacker International Airport will increase almost fourfold, rising from 108,000 to 404,000 tons annually; and ------------------------------------------------------------------- Cambridge Systematic, Inc. ES-3 Inland Port Infrastructure study - Truckloads of freight originating and terminating, as well as passing through the Columbus area, will increase from about 16,200 to 21,800 a day. These forecasts are consistent with national trends and reflect the economic growth of the Columbus area. Warehouse/Distribution Space Warehouse/distribution space is forecast to increase by 58 percent, rising from 86 million square feet to 134 million square feet. The additional 48 million square feet of building space will occupy about 3.4 square miles. A substantial share of this is expected to be located south of I-70, especially in the vicinity of Rickenbacker International Airport, Route 317, and the Alum Creek Drive Corridor. - Recommendations Three general types of recommendations are made to strengthen and develop the Greater Columbus Inland Port. These relate to improved transportation services, infrastructure improvements, and institutional development. Service Recommendations - Increase direct service with Columbus by offering larger shipments to carriers. This can be accomplished by shippers working together (facil- itated by The Greater Columbus Inland Port Commission's Shipper Council) to aggregate or "pool" shipments, especially large outbound air shipments. - Improve rail service between gateways and Columbus by working with railroads and steamship lines to evaluate the possibility of initiating new types of scheduled "shuttle" service between Columbus and the gateways. - Improve U.S. Customs and other support services by working with the U.S. Customs to explore possibilities for expanding their operations in Columbus as freight traffic grows and to insure responsiveness to shippers' needs. ------------------------------------------------------------------- ES-4 Cambridge Systematic, Inc. Inland Port Infrastructure Study - Strengthen marketing efforts to attract new business and transportation services to Columbus. The promotional campaign planned by The Greater Columbus Wand Port Commission and The Greater Columbus Chamber of Commerce will help to bring new business to the area and to increase the volume of freight handled by all modes of transportation. The volume of freight through Columbus will increase due to the expansion of local businesses and the capture of a larger proportion of shipments in its hinterland (by increasing market penetration). The larger freight volume will make it more attractive for carriers to improve service. Infrastructure Recommendations Infrastructure improvements are grouped into three districts and a fourth area which includes the rest of the Columbus area. These are: - Alum Creek-Rickenbacker District, which is centered on the Alum Creek Drive Corridor from I-70 to Rickenbacker International Airport and includes Norfolk Southern's Discovery Park Intermodal Terminal, many warehouse/distribution facilities and truck terminals, part of the Route 317 corridor, and Rickenbacker International Airport and its vicinity; - West Side District, which is centered on Conrail's Westbelt Trailvan Intermodal Terminal at the Buckeye yard and includes the area bounded by 1-270, Fisher Road, Hilliard-Rome Road, and the Hilliard-Cemetery Road, north of Roberts Road; - Port Columbus District, which is centered on the Airport and includes the surrounding area from Fifth Avenue to I-670 and I-270; and - Other areas in Columbus where specific improvements are designated, The districts provide a focus so that the improvements complement each other and achieve the overall objective of improving freight transportation in the Columbus area. Alum Creek-Rickenbacker District It is recommended that the Alum Creek Corridor be developed as an intermodal freight/distribution area. Some of the infrastructure Improvements include: Alum Creek Drive Corridor Widen Alum Creek Drive from I-270 northward. This extends the widening south of I-270 and includes completing the widening between SR 104, and I-70. ------------------------------------------------------------------ Cambridge Systematic, Inc. ES-5 Inland Port Infrastructure Study Improve intersections with 1-270, SR 104, and Groveport Road as traffic warrants. Williams Road Corridor Widen Williams Road from Alum Creek Drive to Groveport Road to handle trucks going to and from the warehouses along Williams Road and make other related intersection and underpass improvements. Construct an overpass for Williams Road over the Norfolk Southern main line or relocate Williams road to the south. Watkins Road and New World Drive Corridor Widen Watkins Road and New World Drive from the bridge over the Norfolk Southern rail lines to Alum Creek Drive and make related improvements including bridge replacement and upgraded intersections. Route 317 Corridor/Alum Creek Drive Carry out recommendations of the ongoing Route 317 corridor development study. Widen and relocate Route 317 in the vicinity of Alum Creek Drive and Rickenbacker International Airport to improve airport access and encourage development. Rickenbacker International Airport Continue implementing planned improvements; including improving access, upgrading utilities, and providing the airfield/air cargo improvements needed to handle increasing volumes of air cargo. West Side District The focus of the infrastructure program in the West Side District include: - Facilitating the expansion of Conrail's Intermodal Terminal and providing road linkages to satellite operations; - Planning rational land use development for expansion and to minimize conflicts between warehouse/distribution and residential and com- mercial activities; - Providing good road access to thoroughfares and major routes, such as I-70 and 1-270, without increasing truck traffic through residential areas; - Planning and scheduling water, sewer, and drainage improvements to improve the development potential of land in this area; and - Coordinating the timing of infrastructure improvements with the expansion of activity at the Conrail Intermodal Terminal and acquiring rights-of- way for road widenings before development occurs. ------------------------------------------------------------------- ES-6 Cambridge Systematic, Inc. Inland Port Infrastructure Study Roberts Road Corridor Widen Roberts Road to four lanes from the Conrail overpass to Walcutt Road and improve intersections from 1-270 to Walcutt Road. Walcutt Road Corridor Widen Walcutt Road for heavy truck use and improve intersections with Roberts Road and Trabue Road. Trabue Road Corridor Widen Trabue Road to four lanes from the Conrail overpass to Hilliard Rome Road and improve intersections; improve access for businesses located along Trabue Road. Port Columbus District Infrastructure planning and development in the vicinity of Port Columbus International Airport mainly focuses on improvements that will be needed in the future to handle new development and redevelopment that is expected to occur because of: - Rapid growth in aviation which will attract many businesses, spin-offs and suppliers to locate in the vicinity of the Airport; - Recent completion of I-670 which will attract businesses to locate along it and in the "gateway" area; - Potential availability of the very large McDonnell Douglas plant located along the south side of the Airport; and - Expansion of warehousing/distribution along Stelzer/Hines Road north of I-670 to a new interchange being constructed with I-270. Specific improvements in the Port Columbus District include: Southeast Cargo Area Add truck queuing lanes along Hamilton Road and Fifth Avenue for trucks entering and leaving the cargo area of the Airport. McDonnell Douglas Plant The current study of the reuse of this large plant and related area should take into account the long-term aviation and intermodal requirements of the Port Columbus International Airport. Its needs should receive high priority. It is suggested that the Master Plan for the Airport be updated, taking into consideration the potential availability of this site. The Master Plan recommendations should be taken into account in the reuse study. ------------------------------------------------------------------- Cambridge Systematic, Inc. ES-7 Inland Port Infrastructure Study Airport Entrance Improve the intersection at the Airport entrance on Stelzer Road by upgrading signalization and coordinating major intersection improvements with the implementation of the Airport's Master Plan over the long term. Institutional Recommendations The Greater Columbus Wand Port Commission will continue to play a key role in coordinating and providing leadership and direction for the Inland Port program. Institutional recommendations include: - Coordinate the businesses, governmental agencies, and institutions involved in the development of the Greater Columbus Inland Port and manage the Inland Port program; - Support and coordinate the efforts of the shipper, transportation, and trade councils; - Assist in identifying and supporting infrastructure improvements related to development of the Inland Port; - Implement the marketing program for the Wand Port. A program to market the Greater Columbus Inland Port is underway, - Continue negotiating with coastal port authorities, steamship companies, and other agencies to establish preferential relationships with Columbus; - Undertake planning to improve freight transportation in the Columbus area, its hinterland, and between Columbus and other national and international locations; - Develop revenue sources to sustain the ongoing work of the Commission; - Develop a "one-stop" transportation development service in cooperation with governmental agencies in the area; and - Build The Greater Columbus Inland Port Commission's capacity for maintaining its leadership role and carrying out key tasks that do not fall within the responsibility of other agencies. ------------------------------------------------------------------- ES-8 Cambridge Systematic, Inc. Inland Port Infrastructure Study - Conclusions Based on the findings of this study, we conclude that it is feasible for Columbus to become the first major inland port in North America because: - Columbus has good transportation facilities and services to support its role as a warehousing and distribution center; - The infrastructure investments required to realize the Greater Columbus Inland Port are moderate and within the funding capacity of the City of Columbus, Franklin County and the State of Ohio; and - The Mid-Ohio community has the leadership and the community support to implement the Greater Columbus Inland Port - Critical Next Steps Four recommended projects warrant immediate action: - Coordinate and encourage the implementation of public and private infrastructure improvements in the Alum Creek- Rickenbacker Corridor and related sections of the Route 317 corridor; - Coordinate and encourage the implementation of public and private infrastructure improvements in the vicinity of Conrail's Buckeye Intermodal Terminal; - Complete implementation of the Greater Columbus Inland Port's marketing program and coastal ports partnership program; and - Institutionalize the shipper, transportation, and trade councils, as well as other ongoing functions of The Greater Columbus Inland Port Commission. ------------------------------------------------------------------- Cambridge Systematic, Inc. ES-9 Inland Port infrastructure Study 1.0 Background - 1.1 Concept of the Inland Port Concept The term "inland port" encompasses the transportation facilities, services, and related activities that are involved in moving freight within, into, and out of the Columbus area. The focus of the Inland Port infrastructure program recommended in this study is to improve the infrastructure associated with these freight movements. Objective An objective of the Inland Port is to make Columbus a hub or "gateway" for the distribution of goods to and from the Midwest. Columbus is centrally located in the large Midwest market area (between Pittsburgh, St. Louis, and Chicago) which makes it a good place from which to distribute goods which are received in large volumes from long distances by double-stack rail containers, cargo aircraft, and long-haul trucks. It is also a central location for aggregating long-haul shipments from the Midwest to the west, south, and east coasts, as well as to Canada and Mexico. (See Figure 1.1.) In order to capitalize on its locational advantage, Columbus must be able to offer good, fast, reliable, and low-cost long- haul transportation service by all modes of transportation. Components of the Inland Port Improving long-haul service into and out of the Columbus area requires simultaneously undertaking many interrelated improvements. These include infrastructure (which are the focus of this study), assembling larger shipments to attract better rail, air and truck service, establishing the North American Trade Point (NATP) in Columbus which will make international information available to local shippers, facilitating international trade by the operation of the Foreign Trade Zone and expanded U.S. customs processing facilities, implementing regulatory changes that facilitate truck transportation, and marketing the Inland Port to make its advantages ------------------------------------------------------------------- Cambridge Systematic, Inc. 1-1
Inland Port Infrastructure Study known locally and nationally. The Inland Port encompasses the integration and enhancement of the wide range of transportation facilities and services available in Columbus in order to improve freight transportation. It does not just refer to a single facility, location or service. Key Facilities The key physical components of the Inland Port include the three rail intermodal terminals - Conrail's Westbelt Trailvan Terminal at its Buckeye Yard, Norfolk Southern's Discovery Park Intermodal Terminal at Watkins Road, and the Honda /Conrail Marysville Intermodal Terminal - as well as the three rail lines, Conrail, Norfolk Southern, and CSX together with their yards and other facilities. Two airports are included; Rickenbacker International Airport, which is the major air cargo facility in the area (and includes Foreign Trade Zone No. 138, and Port Columbus International Airport, which is the main passenger airport. (See Figure 1.2.) Other components include more than 25 passenger and cargo airlines, over 130 truck lines, more than 30 freight forwarders, over 30 public warehouses, more than 800 private warehouses and distribution centers operated by retail, wholesale and manufacturing companies, and numerous other businesses providing legal, financial and logistics services to companies in the Columbus area. Public and Private Participation A key feature of the Inland Fort program is the close working relationship that has been established between the public and private sectors. Most of the rail lines, airlines, trucking companies, warehouses/distribution centers, shippers and other activities associated with freight transportation are privately-owned and operated. However, trucks operate over publicly owned and regulated roads, and airlines operate out of publicly-owned airports. Under the leadership of The Greater Columbus Inland Port Commission, representatives of a wide range of private businesses and government agencies have been working together to develop a coordinated program for improving transportation facilities and services in the Columbus area. Many of the recommendations of the infrastructure study reflect suggestions made by members of The Greater Columbus Inland Port Commission. These include many actions that will mutually benefit the public sector (improved transportation flows and economic growth), and the private sector (improved access to intermodal facilities and opportunities for business expansion). ------------------------------------------------------------------- Cambridge Systematic, Inc. i-3 Figure 1-2
Inland Port Infrastructure Study Organization The Greater Columbus Inland Port Commission and its members are the focal point for development of the Inland Port. The Commission includes: representatives of rail lines, airlines, trucking companies, shippers, legal firms, banks, logistics firms, and other businesses; representatives of city, county and state governments; port authorities; transportation agencies; and the participation and support of The Greater Columbus Chamber of Commerce and The Ohio State University. As the Inland Port program is implemented, some functions of the Inland Port Commission will become institutionalized. In the meantime, the Commission will continue to play a leading role in bringing together the wide range of participants needed for the support and implementation of an effective Inland Port program. - 1.2 Opportunity of the Greater Columbus Inland Port Introduction Columbus is fortunate to be located at the right place, at the right time, and to have the basic facilities and services for the Inland Port already in place. Now is the right time for establishing an inland port in Columbus because it will meet the rapidly expanding logistics needs of businesses. With astute planning, concerted efforts by the freight community, and support by government institutions and marketing, Columbus can become a major multimodal transportation-distribution center serving the Midwest and part of Canada. New Market Opportunity Currently a revolution is taking place in transportation logistics as business and freight transportation enter the information age. Computers, communications and information technology are rapidly changing and speeding up the way business is done. This is reflected in shorter times between ordering products and components from worldwide suppliers and their delivery to manufacturers, retailers and other businesses. Product development cycles are becoming shorter, more goods are being custom-tailored to the needs of specific clients and markets, and just-in-time manufacturing and retail deliveries are essential to the success of businesses in an increasingly competitive world. ------------------------------------------------------------------- Cambridge Systematic, Inc. 1-5 Inland Port Infrastructure Study As these changes are introduced, they are forcing businesses to choose their locations carefully, paying special attention to their logistics needs. Companies are looking for sites at the center of major market areas with excellent access to air, rail, port, truck, and information networks. They are seeking sites that can support national and international logistics systems cost effectively. Columbus is in a unique position to meet these needs. It is centrally located in the large Midwest market area, is served by a good regional transportation network and has exceptionally good long distance service by double-stack rail and international air cargo, and has a strategic location on the interstate highway system. Columbus is Already Becoming an Inland Port Columbus is in the unusual position of already becoming an inland port. This means that the focus of its efforts can be to build on growth that is occurring - helping this to continue and to become more successful. Many of the basic facilities for an inland port are already in place. Two of the three intermodal rail terminals are expanding. Port Columbus International Airport was the fastest growing commercial airport in North America in 1992. Air cargo has been growing at Rickenbacker International Airport and considerable warehouse development is occurring in the 2,000-acre Rickenbacker Air Industrial Park. More than two million square feet of warehousing alone were added last year and more than 1,500 jobs opened up in the distribution and transportation sectors. Companies in the Columbus area are dramatically increasing their exports and new inter- national companies, including suppliers to the automobile industry, are locating and expanding in the area. In response to the growing volumes of freight, the rail lines, including Conrail and Norfolk Southern, are in- creasing their service to Columbus. Steamship companies (such as "K" Line, Maersk, APL, Hyundai, Evergreen, NYK and Mitsui) are all increasing the volumes of freight handled through Columbus. The Greater Columbus Inland Port has the Leadership, Public and Private Sector Support Needed for Success Columbus has the institutional support required to implement an effective program. This includes support of shippers and freight transportation companies, as well as the business community, proactive local governments and the State. With this support and an understanding of the requirements of transportation logistics, transportation investments will be identified that will make Columbus a major intermodal distribution center. ------------------------------------------------------------------- 1-6 Cambridge Systematic, Inc. Inland Port Infrastructure Study Public and private capital will be leveraged to implement those improvements. Columbus will be marketed as a major inland port, attracting new domestic businesses and transportation services. This initiative is consistent with meeting the changing logistics needs of business and with the objectives of the new federal Intermodal Surface Transportation Act (ISTEA). The action program outlined in this report is designed to make Columbus an international model for intermodal transportation. Its success will make Columbus a better location for business and generate substantial economic benefits in the area. ------------------------------------------------------------------- Cambridge Systematic, Inc. 1-7 Inland Port Infrastructure Study 2.0 Findings - 2.1 Columbus is Well Located to be a Distribution Center for the Midwest Introduction Columbus is strategically located in the heart of the Midwest. it is about a one-day drive (12 hours, 500 miles) from New York, Atlanta, St. Louis and Chicago, which are the major distribution centers in the northeast quadrant of the United States. Within this large trade area is about half of the population, employment and retail purchasing power in the nation. (See Table 2.1.) Within the hinterland of Columbus (about a 250-mile radius) is approximately one-tenth of the nation's population and productive resources. This distance is about the longest round trip that a truck can make from Columbus in a day. In 1995, Columbus hinterland will contain: - 24.1 million people, about 9.3 percent of the population of the United States; - 12.8 million workers, about 8.9 percent of the employment in the nation; - 2.3 million manufacturing workers, about 11.2 percent of those employees in the nation; and - 2.3 million retail workers, accounting for about 9.4 percent of those employees in the nation. Columbus is located near the center of the Northeast- Midwest manufacturing belt. A large number of manufacturing plants that are heavily dependent on transportation are located in its hinterland. Included are many of the new automobile assembly plants established during the past decade, such as those of Honda and Toyota. Associated with these are hundreds of parts suppliers. In addition to heavy manufacturing (such as steel n-tills) are companies producing a wide range of industrial machinery, fabricated metal parts, food products and a rapidly increasing number of high technology companies. Many of the industries and businesses in this area produce goods for national and international markets outside of the Midwest. ------------------------------------------------------------------- Cambridge Systematic, Inc. 2-1 Table 2-1
Inland Port Infrastructure Study The large population and comparatively high incomes of people living in the area generate a large demand for retail goods. These include food products, building materials, clothing, appliances, furniture and general merchandise. Most of these goods are brought into the area from national and international sources. Generally, most manufacturing, retail, construction and other businesses in this area can be served better from Columbus because it is closer to them than to the three major distribution centers. (See Figures 2.1 and 2.2.) Depending on the direction goods are coming from and their final destination, some firms closer to Columbus than 250 miles will not ship through Columbus if this results in a substantial backhaul in their overall trip; however, some others located farther away will ship through Columbus because it is on the way to their final destination. A large proportion of the goods consumed and produced in the hinterland of Columbus come from or are shipped into or out of the Midwest. Through its Inland Port, Columbus serves as the "gateway" for a substantial share of the goods entering and leaving its hinterland which en- compasses the heart of the Midwest. - 2.2 Columbus Has a Competitive Advantage Compared to Other Cities Columbus is the best location from which to serve the Midwest market between New York, Chicago, Atlanta and St. Louis because Columbus' hinterland (within 250 miles) has more population and businesses than those of other major Midwestern cities including Cleveland, Cincinnati, Pittsburgh and Indianapolis. As shown in Table 2.2, in 1995, Columbus' hinterland will be: - 24.5 to 30.9 percent larger in population; - 26.8 to 31.9 percent larger in employment; and - 3.7 to 34.9 percent larger in retail sales. The methodology for carrying out this analysis was to use population, employment and other characteristics forecast by the U.S. Bureau of Economic Analysis for the counties and economic areas in the hinterlands (approximately 250 miles) of each of these metropolitan areas. The hinterlands were adjusted to reflect competition from the three major centers when the hinterlands of the Midwestern cities are less than 250 ------------------------------------------------------------------- Cambridge Systematic, Inc. 2-3 Figure 2-1
Figure 2-2
Table 2-2Inland Port Infrastructure Study miles from them. In those cases, part of the trade area could be served with one-day truck trips from both the Midwest city and from the major center. Figure 2.2 shows the competitive Midwest cities and Table 2.2 and Figure 2.3 show the size of their hinterlands compared with Columbus. Some of the considerations in reaching the conclusion that Columbus is the best location for serving the Midwest market are the following: - Columbus is centrally located in the Midwest. Its 250-mile hinterland does not overlap those of New York or Atlanta. Chicago's and Columbus' hinterlands overlap about 50 miles (to the west of Columbus). - Pittsburgh's hinterland is significantly overlapped by New York's, as well as by Philadelphia's, Baltimore's and Washington, D.C.'s to the east. Also, the areas north and south of Pittsburgh are mainly in rural Appalachia and are not heavily developed. - Cleveland's hinterland is constrained on the north by Lake Erie. Buffalo on the northeast and Detroit on the northwest are the main gateways to Canada. Also, the part of its hinterland to the southeast is not heavily populated. - Cincinnati's hinterland is more impacted by Chicago to the northwest and by St. Louis, on the west than is Columbus'. Distribution from Chicago significantly cuts into the densely developed area northwest of Cincinnati. Also, much of the area south of Cincinnati is rural. - Indianapolis hinterland is more overshadowed by Chicago on the north than is Cincinnati's or Columbus. To the west, it is significantly over- shadowed by St. Louis. The area south of Indianapolis, for which it is the dominant center, is not heavily developed. Looked at from the point of view of the relative size of its hinterland, Columbus is the best location for serving the Midwest market. Of course, the ability to serve this market depends in large measure on its transportation network and services, which are discussed in the following sections. - 2.3 Columbus is Well Located on National Highway, Rail and Air Transportation Networks Introduction Columbus is located at the intersection of highway, rail and air transportation networks. It is well served by highways, such as major interstate highways I-70 (east- west) and I-71 (northeast-southwest). It is located on ------------------------------------------------------------------- 2-6 Cambridge Systematic, Inc. Figure 2-3
Inland Port Infrastructure Study three rail lines, Conrail, Norfolk Southern and CSX. It has two airports, Port Columbus International Airport which serves 42 cities with daily direct flights and Rickenbacker International Airport which handles large volumes of international air freight as well as package freight through its Federal Express hub. While other cities may have a larger airport, be located on higher volume double-stack rail lines or have more interstate highways, it is the only city of its size in the Midwest that offers this combination of transportation facilities which gives it the potential of being a unique intermodal center. Truck Network Columbus is well-served by interstate highways. East- west transportation is provided by 1-70 which links Columbus with Pittsburgh, Philadelphia, New York and Washington on the east, and Indianapolis, St. Louis, Kansas City and Denver on the west. Interstate 71 connects with Cleveland on the northeast and with Cincinnati and Louisville to the southwest. Other highways also radiate out from Columbus providing good access to many cities. These include US 23 which links Columbus with Toledo on the northwest and to Portsmouth, OH and Charleston, WVA to the southeast. US 33 serves northern Indiana and to the southwest, Parkersburg, West Virginia. (See Figure 2.4.) Interstate 70 is used by large numbers of trucks traveling east-west. On an average day, between 10,000 and 12,000 large trucks travel through Columbus on this route. Interstate 71 carries between 7,000 and 8,000 large trucks to and from the northeast, the south, and the west. Highway US 23 and US 33 carry between 2,000 and 4,000 large trucks in the vicinity of Columbus. Columbus is a major hub in the national distribution network served by truck. Rail Network Columbus is served by three railroads, Conrail, CSX and Norfolk Southern. (See Figure 2.5.) Conrail provides service to east coast ports including New York, Philadelphia and Baltimore, as well as the "gateways" of Chicago and St. Louis, where it interconnects with transcontinental rail lines, such as the Santa Fe and the Burlington Northern. Norfolk Southern provides service to the southeastern United States, especially to ports such as Norfolk, VA, and to gateways such as Kansas City and Chicago, where it interconnects with the Santa Fe, Union Pacific and Burlington Northern. CSX provides service between Columbus and the southeast, and gateways including Detroit and Chicago. Its traffic through Columbus is mainly bulk commodities, such as coal moving from the mines in West Virginia and Kentucky to power plants in the northern Midwest, including Detroit. ------------------------------------------------------------------- 2-8 Cambridge Systematic, Inc. Figure 2-4
Inland Port Infrastructure Study Although Columbus is well-served by railroads, it is not located on main lines crossing the United States. Columbus is the only city in Ohio served by three intermodal rail terminals. All of these have been established during the last 10 years. More containers (180,000) are handled in Columbus than in any other Ohio city. Only gateway cities in the Midwest, such as Detroit, Chicago and St. Louis handle more containers. Columbus has very good double-stack service with the west coast whose ports handle twice as many international con- tainers as do east coast ports. (See Figure 2.6.) Tunnel clearances through the Appalachian mountains do not permit direct double-stack service to the east coast. This is available on Conrail through Cleveland and good single-stack service is provided on Norfolk Southern. Norfolk Southern provides service through its Discovery Park/Watkins Road Intermodal Terminal, which handles about 50,000 containers annually. Single-stack service is provided between Columbus and Norfolk, VA and double- stack service with the west coast is mainly provided through its Kansas City gateway. Recently, it has begun to provide service, subject to some limitations, through Cincinnati, operating over Conrail's tracks. Conrail provides intermodal service through its Westbelt Trailvan Intermodal Terminal located at its Buckeye rail yard, where it handles about 80,000 containers annually, as well as through Honda's Marysville Intermodal Terminal, which handles about 40,000 containers annually. Conrail provides double-stack service to the east coast through Cleveland and to the west coast through its Chicago and East St. Louis gateways. CSX operates an intermodal container terminal in Columbus, however most of the goods going to and coming from the west coast are trucked to and from Cincinnati rather than shipped over its branch line. CSX also operates its Bulk Intermodal Distribution Services facility in Columbus for trans-loading solids, liquids, pellets, resins and powder or granule from rail car to truck. Aviation Network Columbus is served by two large commercial airports. Port Columbus International Airport is the main air passenger airport and Rickenbacker International Airport is the major air cargo airport. Columbus is the only Ohio city with two large commercial airports; together these provide the area with the best aviation facilities in Ohio. Port Columbus International Airport was the most rapidly growing passenger airport of its size in North America in 1992. In 1992, the Airport handled a total of about 5.3 million passengers. Direct passenger service is ------------------------------------------------------------------- Cambridge Systematic, Inc. 2-11
2-12 Inland Port Infrastructure Study provided to 42 cities throughout the nation. Cities served include Los Angeles, Denver, Dallas, New York, Toronto and Orlando, as well as major hubs, such as Chicago and all of the important Midwestern cities, including Pittsburgh, Detroit, Indianapolis and Nashville. Columbus serves as a regional hub in the Midwest as well as having good national and international service (with Canada). Rickenbacker International Airport handles large amounts of international and domestic air cargo. Currently Federal Express has a small hub operation at the airport. Large freighter aircraft bring in sizeable volumes of goods from the Far East for distribution from the Columbus area. As many as five wide-bodied cargo aircraft a day land and unload at the airport during the Fall when stores are stocking up for the Christmas season. In addition, many small private planes and commercial aircraft use the airport. Rickenbacker International Airport is a former military airbase that has been partly taken over and operated as an air cargo facility by the Rickenbacker Port Authority. With parallel 12,000 and 10,000 foot long runways, it has the two longest runways in Ohio. Chicago's O'Hare Airport and New York's JFK Airport each have only one runway longer than 12,000 feet. The airport has the runway strength, facilities and instrumentation to handle the largest aircraft arriving and departing on international flights. Although a joint use facility (military and civilian), it has ample capacity to serve as a cargo hub. Furthermore, there is little residential development around the airport so there is little noise exposure and cargo operations are not constrained by noise restrictions. Under the leadership of the Rickenbacker Port Authority, Franklin County and other agencies, many support services for air cargo and distribution are being developed in the Rickenbacker Air Industrial Park and Foreign Trade Zone No. 138, on the Airport and in its vicinity. The airport has been nationally recognized as one of the leading air cargo airports in the United States. - 2.4 Columbus is Served by a Good Logistics Network Introduction The Columbus area has good service by all modes of transportation. Shippers have a choice of mode - truck, rail or air - for moving goods between the Columbus area and a large number of destinations. They are able to ------------------------------------------------------------------- Cambridge Systematic, Inc. 2-13 Inland Port Infrastructure Study select the mode, or combination of modes, that best meets their requirements of cost, speed and reliability of service. Columbus offers more choice than any of the other Midwestern cities, except gateways, such as Chicago. However, it does not have the traffic congestion and high costs of handling and moving goods. For example, the per mile costs of trucking goods in New York City are about twice as high as they are in the Columbus area. Fast, reliable shipment times are available between Columbus and many destinations worldwide. Goods can reach Columbus from mainland Asian ports, such as Hong Kong, in 14 to 16 days by container ship to the west coast and double-stack train to Columbus. From Europe, shipment times are about 10 to 12 days. By air, goods can reach Columbus, clear U.S. Customs and be delivered to shippers in one to two days from Europe and Asia, if the shipments are made in cargo planes using Rickenbacker International Airport. Smaller loads shipped through a gateway, such as Chicago, require about one-half day longer. The cost of air freight is approximately 10 times ship/rail. Expedited truck and rail service between Columbus and the west coast is two- and one-half to three days. As mentioned earlier, Columbus is at the hub of highways serving the major cities in the Midwest. Within a day's round trip by truck about 10 percent of the nation's population, manufacturing, and retail business can be served from Columbus. The service provided by transportation companies is related to the volume of goods that are shipped into and out of an area. During the past decade, the volume of goods moving into and out of Columbus has increased rapidly especially by rail and air. Companies serving national and international markets have expanded rapidly. These include both manufacturers and warehouse/distribution activities. As this has occurred, more frequent, competitive, faster and expedited service is being provided by truck, rail, and air carriers. In turn, this has attracted more transportation dependent activities to locate in Columbus. However, Columbus does not have the volume of freight of "gateway" cities, so its service is not as good, especially by air and rail. Improvement of through service commensurate with increasing volumes of goods handled in Columbus, better service between Columbus and air and rail gateways, and steps to assemble larger regular shipments, as discussed later, are improvements that will strengthen Columbus as an intermodal center. Trucking Columbus is well-served by trucking. There are about 130 truck lines in the Columbus area providing local, intrastate and national service. These include national companies, such as CF MotorFreight, Roadway and Yellow Freight Systems, Inc., as well as smaller companies, such as Walker ------------------------------------------------------------------- 2-14 Cambridge Systematic, Inc. Inland Port Infrastructure Study Trucking and Freight-A-Ranger. They are located near the major east-west interstate highway (1-70) and the north- south interstate highway (1-71). Truck delivery times for full truckload shippers, from Columbus to the west coast (Los Angeles) is about 54 hours. Because of the large number of truck lines, there is strong competition for business and rates are comparable or lower than from other areas of the United States. Ohio has a good balance of inbound and outbound goods moving by truck which means more two-way full trips and more favorable rates. Rail Columbus has good rail service provided by the three rail lines which operate traditional marshalling yards, and two of the rail lines, Conrail and Norfolk Southern, also provide intermodal service. Intermodal service inbound from the west generally is on double-stack trains from the ports of Seattle-Tacoma, San Francisco -Oakland, and Los Angeles - Long Beach. These are routed through gateways, such as Chicago, Kansas City and St. Louis. The containers for Columbus are separated from the through trains at these gateways, and brought to Columbus by rail and truck. For expedited service, actual travel time is about two days from the port to the gateway city and another day to reach Columbus. To this is added loading, cutoff times (goods must arrive several hours before the train leaves to allow for loading and assembling the train) and local drayage, generally bringing through shipping times to three to four and one- half days between the west coast and Columbus, depending on the route. The frequency and timing of service and connections through gateways affect shipment times to and from Columbus. For example, if an inbound international shipment's arrival is not coordinated with an expedited double-stack train's departure (or the containers can't be accommodated on the train), then a day or two can be lost in delivery. For both international and domestic service, there may not be daily expedited train service, which means that loads must wait for the train. In addition, the day of the week that expedited service is provided must be taken into account. For example, if trains depart on Thursday night or Friday morning from the west coast, they will arrive in Columbus at the beginning of the next business week. On the other hand, if they leave on Tuesday or Wednesday, they may arrive on the weekend and be held in the terminal for a day or two, making effective delivery times five or six days from the west coast. A critical link in rail logistics is the service between Columbus and the gateway cities. Breaking off the cars destined for Columbus and routing these without delay is critical to fast and efficient service. For this to happen, there must be enough rail cars to make up a small train or there must be scheduled train service coordinated with the arrival of the double stack train in the gateway city. Improved coordination of switching and ------------------------------------------------------------------- Cambridge Systematic, Inc. 2-15 Inland Port Infrastructure Study transferring rail cars to trains from the gateway to Columbus would reduce overall shipping times. It would help to eliminate the need to truck some shipments between Columbus and the gateway cities. Scheduling of through double-stack trains between the west coast ports and the gateway cities depends on overall market and transportation considerations, over which individual Columbus' shippers have little influence. As the volume of intermodal goods trans-loaded in Columbus increases, service between the gateways and the cities will improve. In 1993, Conrail added two additional trains a week between Chicago and Columbus. The steamship companies, such as "K" Line, APL, Maersk, Hyundai, NYK and Mitsui play an important role in aggregating shipments and contracting for regularly scheduled rail service. Mitsui, for example, contracts for two weekly double-stack trains from the west coast to Columbus /Marysville. Much of the traffic on these is automobile parts. "K" Line is beginning to use Columbus as a distribution point for the Midwest and is increasing its traffic, much of which is now handled by Conrail's Buckeye Intermodal Terminal. Maersk is establishing a central container facility in Columbus which will serve all of Ohio. Although Columbus has good rail service with west coast ports, continuing improvements between Columbus and the gateway cities will benefit shippers in the area. It will also make rail more competitive with truck. Currently, the flexibility of truck service gives it a small time advantage for domestic shipments between Columbus and the west coast. Trucks can leave when they have a full load and go directly from the shipper to the receiver. Train shipments depend on which days of the week service is available, and load, unload, cutoff time and drayage to and from the rail terminals must be taken into account. Rail service for intermodal containers between the northeast coast ports and Columbus is generally through Cleveland, and for southeast coast ports, through Cincinnati or Louisville. Only about one-half as many rail containers are handled between the east coast and Columbus as are handled with the west coast. This is partly due to the less direct rail routes, less double- stack capacity and greater competition from trucks because of the shorter distance. For example, a large number of containers between Baltimore and Columbus move by truck, partly because of the more direct highway route. Columbus has a logistics advantage as a distribution (and shipment aggregation) center in the Midwest for goods shipped through east coast ports. Its location, more than 500 miles from most east coast ports, means that rail costs are competitive with truck. In addition, the cost of distribution from Columbus to most of the Midwest is less than the cost of distributing to this area directly from the east coast. Labor and handling costs, congestion and other factors in these coastal ports make distribution by truck more expensive per mile than in Columbus. Columbus' strategic ------------------------------------------------------------------- 2-16 Cambridge Systematic, Inc. Inland Port Infrastructure Study location, low cost, good intermodal infrastructure, and transportation services, make it an ideal location to serve as an inland port. Rail service improvements are needed with the east coast. These include more frequent and more direct service. just as with the west coast, increased volumes of intermodal goods will generate demand for improved service. This is occurring now, such as on Norfolk Southern's new oper- ations with Conrail by way of Cincinnati and Columbus, which provides better service between the southeast and to New England. In addition, other types of service and equipment, such as improved piggyback service, Triple- Crown, Road Rafler, and "iron highway," can provide alternatives to double-stack that are more competitive with trucking on short (500 mile) hauls. Persuading the railroads to introduce these new services in Columbus will strengthen its position and enable it to offer better, faster and lower cost rail service with the east coast. Air Port Columbus International Airport and Rickenbacker International Airport (RIA) provide good air service for both passengers and cargo. Port Columbus International Airport mainly serves passengers and Rickenbacker International Airport mainly serves cargo, although each serves both markets. Rickenbacker International Airport's cargo operations include packages handled through Federal Express' small hub operation, handling large all cargo aircraft from around the world and smaller charter and general aviation aircraft. In 1993, the Airport handled about 50,000 metric tons of air cargo, which is twice the amount handled in 1990. These were transported on about 5,000 aircraft operations, which is less than 10 percent of the flights at the Airport, and which account for a very small part of its available capacity. Airlines serving Rickenbacker International Airport include Federal Express, which operates daily flights, and all cargo charter flights operated by airlines such as Cargolux, Arrow, Evergreen, Northwest Cargo, Polar Air, Korean Airlines, and Kalita which provide service between Columbus and the Far East and Europe. Cargo aircraft using Rickenbacker include "wide bodies" such as Boeing 747s, and DC10s, as well as narrow-bodied and smaller aircraft such as DC8s, Boeing 727s, Cessna C208s and Fairchild F27s. Rickenbacker International Airport's Category 1 Instrument Landing System together with its FAA approved Noise Control Program mean that aircraft can land and take off at all times of day and in early all kinds of weather. Having dual runways means that there is an open runway even during most emergency repair conditions. ------------------------------------------------------------------- Cambridge Systematic, Inc. 2-17 Inland Port Infrastructure Study Facilities for efficiently handling, loading, storing (including in active Foreign Trade Zone No. 138), and U.S. Customs processing are available on Rickenbacker International Airport. This means, for example, that goods arriving at Rickenbacker International Airport can be quickly unloaded, processed through U.S. Customs and delivered to receivers in the Midwest. Service for international shipments is faster, more reliable and less expensive at Rickenbacker International Airport than at major gateway airports. Port Columbus International Airport is served by about 18 passenger airlines with 325 daily nonstop and direct one-stop service to 42 cities. These aircraft carry "belly" freight, which means that there is good narrow body (small container) freight service to these cities. Good, frequent air service is important to both business travelers (who account for about half of the passenger trips), as well as to pleasure travelers. America West operates a small hub operation serving regional and national markets. In addition, the Airport handles several charter air passenger airlines, such as Sun Country, Carnival and Miami Air. Port Columbus also handles small packages and mail. United Parcel Service (UPS), for example, operates daily flights carrying packages between Columbus and their network of hubs. Air freight and mail are carried in the bellies of passenger aircraft and in smaller all-cargo planes. Some all-cargo charter aircraft also use the Airport. Altogether, about 55,000 tons of air cargo and mail were handled in 1992. About 60 percent of this (about 30,000 metric tons) was air cargo and about 25,000 tons was air mail. Columbus is an important air mail distribution point in the Midwest. For less than planeload shipments, especially with international locations, shippers in Columbus mainly rely on service through international gateway airports, such as Chicago, New York (JFK), and Miami (especially with Central and South America). These gateway airports have the frequency of direct service to a large number of international destinations on wide bodied aircraft that are required by shippers. Goods are usually trucked to or from the gateways and Columbus. Through Chicago, this adds about one-half day to the one- or two-days overall shipping time and increases the cost by a small percentage. To New York or Miami, it adds an additional one to two days and higher trucking costs. Because shipments may be less than truckload, the per pound costs may be high if the shipments are not consolidated. However this may also require more time and handling may be slower. Shipping through gateways is less reliable because packages may be bumped" by those of higher priority shippers. Providing better service between Columbus and gateway airports is one step that would be helpful to air cargo shippers. A second step is to improve the backhaul on large air cargo planes departing from Columbus. Currently most all-cargo flights arrive full, but leave empty. Aggregating ------------------------------------------------------------------- 2-18 Cambridge Systematic, Inc. Inland Port Infrastructure Study backhaul shipments out of Columbus would provide direct outbound service to more destinations and would help to reduce air shipment costs because planes would be carrying cargo both inbound and outbound, rather than just inbound. - 2.5 Other Advantages Many logistics services that support intermodal transportation are located in the Columbus area. These include integrated transportation companies such as UPS, which operates one of its largest package distribution hubs in the Midwest through its two Columbus facilities. LandAir, an important company handling the ground transportation of air cargo to and from airports, has recently located its national hub at Rickenbacker Inter- national Airport. Many large public and private warehouses are located in Columbus which distribute goods throughout the Midwest and nationwide from their Columbus locations. Other support services include the North American Trade Point(NATP) which is being established in Columbus. It is the only trade point in North America designated by the United Nations Conference on Trade and Development (UNCTAD) as part of its trade efficiency initiative. The U.N. network, which includes Trade Points in more than 30 countries worldwide, is designed to facilitate international trade by providing small- and medium-sized businesses with a centralized access point for trade information, databases, trade linkages, and advanced communications technologies.The World Trade Center Columbus, working closely with The Greater Columbus Area Chamber of Commerce, provides additional support and assistance in foreign trade.The recently completed 158,000 square foot Ohio Distribution Warehouse constructed within FreeTrade Zone No. 138 at Rickenbacker International Airport provides foreign trade zone services and complements services provided by U.S. Customs bonded warehouses in the area.Several logistics companies, including Exel and Impex Logistics, are located in Columbus. More than 20 other international trade consultants, 38 freight forwarders and customs brokers, and representatives of international ocean shipping companies, such as APL, Honda Trading Company, and Evergreen, have local offices. Numerous banks, attorneys, translators, and other services which facilitate international and domestic freight transportation are also available in Columbus. The area has a broad range of logistics services required by companies carrying out international trade from the Columbus area. Several large companies in Columbus are leaders in domestic and intermodal transportation. The volume of their activities and their knowledge play an instrumental role in improving intermodal service in the Columbus ------------------------------------------------------------------- Cambridge Systematic, Inc. 2-19 Inland Port Infrastructure Study area. On one hand, their requirements (such as Honda Motor Company's) mean that more frequent expedited double-stack rail service is provided to the Columbus area.To some extent, other shippers can take advantage of this by "piggybacking" on this service through the steamship companies (such as Mitsui and Honda Trading Company) who handle some of this freight.Other large volume companies, such as Consolidated Stores Corporation, The Limited and Ross Laboratories have extremely knowledgeable logistics staff who make their insight available to other shippers in the area.The combination of high volumes of goods movements, knowledgeable logistics staff and local experts available from The Ohio State University and from specialized logistics companies, strengthen the capabilities of many companies in the area and help them to take advantage of the good transportation services and freight infrastructure in the Columbus area. ------------------------------------------------------------------- 2-20 Cambridge Systematic,Inc. 3.0 Forecasts - 3.1 Introduction This section presents forecasts to 2010 of the freight handled by the intermodal rail terminals, airports and trucks in the Columbus area.It begins with a review of the trends in the local economy which provides a back- ground for the forecasts. The concluding section presents a forecast of warehousing, which, is closely related to the growth of intermodal traffic in Columbus and is expected to be one of the most rapidly growing sectors of the Columbus economy. - 3.2 Forecast of the Economy of the Columbus Area The Columbus metropolitan statistical area (MSA) has been one of the fastest growing in the Midwest and it is expected to continue to grow rapidly in the future (see Table 3.1). Between 1980 and 1990, the population of the six-county MSA increased by 9.3 percent, from 1,260,000 to 1,377,000.This is an annual rate of growth of 0.9 percent.Its population is forecast to increase by 273,000, reaching 1,650,000 in 2010.This is nearly a 20 percent increase and reflects a continuation of its 1980 to 1990 annual rate of growth. The Mid-Ohio area, with a 1990 population of 3,341,000, is expected to grow about two-thirds as fast as Columbus.Its population is forecast to increase by 459,000 (13.7 percent or 0.7 percent annually), reaching 3,800,000 in 2010.The population of Columbus' hinterland (within about 250 miles) is forecast to increase by 1,579,000 by 2010, reaching 25,236,000 in 2010.Although the numerical increase is larger than the 1990 population of Columbus, the annual rate of growth is less than one- third as fast as in Columbus and about one-half as fast as in the Md-Ohio area. The annual average rate of growth in employment in Columbus is forecast to about one-quarter faster than in the Mid-Ohio area and three times faster than in its hinterland.Between 1990 and 2010, employment in Columbus is forecast to increase by 246,000 (34.6 percent), rising from 712,000 to 958,000.In the Mid-Ohio area, it will increase by 420,000 (25.4 percent), rising from 1,652,000 to 2,072,000.Employment in Columbus' hinterland will increase by 1,544,000 (12.8 percent), rising from 12,110,000 Cambridge Systematic, Inc. 3-1 Inland Port Infrastructure Study Table 3.1 Population and Employment in Columbus and Its Trade Area, 1990-2010
Sources: 1. Columbus MSA data was forecast by Cambridge Systematic, Inc., taking into account projections by MORPC, The Greater Columbus Chamber of Commerce and other sources. 2. Mid-Ohio Area is approximately within 50 miles of Columbus. The forecast reflects growth in the Columbus MSA and forecasts for the surrounding economic region by the U.S. Bureau of Economic Analysis in, "BEA Regional Projections to 2040." 3. The forecasts for the 250-mile area are based on, "BEA Regional Projections to 2040." ------------------------------------------------------------------- 3-2 Cambridge Systematic, Inc. Inland Port Infrastructure Study to 13,654,000.The increase in employment in the hinterland is more than twice the total employment in Columbus in 1990. There are many reasons for the continued rapid growth of Columbus.These include a strong and well diversified industrial base, good labor force, competitive costs, good business climate and a location in the industrial heartland of the United States.Columbus was fortunate in not having the large concentration of heavy industry found in many Midwestern metropolitan areas.These industries have been through a long period of restructuring and downsizing which has adversely affected the economies of their areas.Instead, Columbus has attracted national corporate headquarters, seen the expansion of financial services, distribution, retail trade, tourism and conventions, and construction.The Ohio State University, Battelle Memorial Institute and other institutions have played important roles in spinning-off and supporting the growth of successful medium- and high- technology businesses.Both the City and the County governments have outstanding national reputations.This is reflected in the high quality of government services and good infrastructure, especially for transportation, that has been developed in the area.The rapid growth of the Columbus area adds to its national and international reputation as a good location for business in the Midwest. The continuing strong growth of Columbus and the Mid-Ohio area will generate rapidly growing demand for the shipment of manufactured products, retail goods, construction materials and other freight into and out of the area.Large national companies in the area are increasing the volume of goods shipped to and received from national and international markets.The expanding markets of smaller companies will add to this.The continued rapid rate of population growth and income will generate growing demand for retail goods, most of which will be brought into the Columbus area from national and international sources.The continued rapid expansion of warehousing and distribution will substantially increase the amount of freight coming into and being distributed from the Columbus area. Forecasts indicate that the economy of Columbus' 250-mile Midwest hinterland is recovering, making the transition from traditional heavy industry to more specialized manufacturing, higher technology businesses and services.While not growing as rapidly as Columbus, demand for intermodal freight transportation will increase with the expansion of businesses, especially as they develop national and international markets. ------------------------------------------------------------------- Cambridge Systematic, Inc. 3-3 Inland Port Infrastructure Study The economic forecasts indicate that demand for the intermodal transportation of goods will increase rapidly due to: - The continued rapid growth of the Columbus and Md- Ohio area; and - The growth of Columbus hinterland and expansion of national and international trade by the businesses located within one day's truck delivery time from Columbus. Columbus is the best location for serving the rapidly growing intermodal freight transportation needs of its Midwest hinterland, being centered between Chicago, Atlanta and New York, and it will attract an increasing share of goods moving into and out of this area. - 3.3 Forecasts of Truck, Air and Rail Intermodal Freight in the Columbus Area Overview Forecasts to 2010 of truck, air and intermodal rail freight in the Columbus area are presented in this section.The results are summarized in Table 3.2. These indicate that between 1992/1993 and 2010: - The number of intermodal containers and piggyback trailers handled at the three intermodal rail yards will more than double, increasing from 180,000 to 390,000 annually; - Air cargo and mail loaded and unloaded at Port Columbus International Airport and Rickenbacker International Airport will increase almost fourfold, rising from 108,000 to 404,000 tons annually; and - Truckloads of freight originating and terminating, as well as passing through the Columbus area, will increase from about 16,200 to 21,800 a day. These forecasts are consistent with national trends and reflect the economic growth of the Columbus area. 3-4 Cambridge Systematic, Inc. Table 3-2
Inland Port Infrastructure Study Methodology The forecasts of truck and intermodal rail freight were made by Transmode using their proprietary freight forecasting model. It started with the forecast of the economy of Columbus and its trade areas, which was sum- marized in the previous section.The annual tons/volume of freight generated and attracted by each economic sector were estimated by the model.Sectors generating most of the truck movements include manufacturing, wholesaling/distribution and retail trade.Based on the characteristics of goods being transported, such as their weight and volume, the number of equivalent 40-foot truckloads was estimated.Taking into account the types of goods, typical mode of transportation and distance shipped, these were allocated between intermodal rail /piggyback and trucks.The base year (1990) estimates were calibrated with available information on truck flows and movements of intermodal containers.The shares of goods in the Columbus MSA, Mid-Ohio area, State of Ohio, and within 250 miles that are handled through Columbus were estimated. Future volumes were forecasted taking into account: - The economic growth in each of the areas served, including the MSA, Mid-Ohio, State of Ohio and hinterland within 250 miles. - Increasing the share of goods in each area handled through Columbus by 5 to 10 percent, reflecting the growth of intermodal service through Columbus and rapid expansion of warehousing and distribution there. This means that if 20 percent of the goods in an area were handled through Columbus in 1990, this would increase to 21 to 22 percent in 2010. - The increase in goods movement per unit of output resulting from companies serving more distant(especially international) markets,greater outsourcing of components, and obtaining more good sand components from national and worldwide suppliers. The results of the forecasts were compared with national trends to assure they were consistent. The forecasts of intermodal rail containers were reviewed with the intermodal departments of the railroads who own the terminals, steamship companies, trucking companies and other local agencies involved in forecasting transportation needs. The forecasts were regarded as being reasonable, especially through the year 2000. No transportation company had made forecasts beyond the turn of the century. The air cargo and mail forecasts are based on special aviation studies, historic trends and comparisons with national forecasts. The forecasts of freight at Rickenbacker International Airport are based on the Airport Master Plan, the judgment of the aviation consultant and staff, and the 3-6 Cambridge Systematic, Inc. Inland Port Infrastructure Study judgment and staff of Rickenbacker International Airport. Forecasts for Port Columbus International Airport are based on the continuation of trends in air freight and mail at the Airport, national trends, and discussions with the staff of the Airport. Forecasts of Intermodal Rail Containers In 1990, a total of about 170,000 rail containers and piggyback trailers were handled annually at the three intermodal terminals in the Columbus area. Approximately 50,000 of these were at Norfolk Southern's Discovery Park (Watkins Road) Intermodal Terminal, 45,000 at the Marysville Honda/ Conrail Intermodal Terminal, and 75,000 at Conrail's Entermodal Terminal at the Buckeye Yard. Conrail's operations at Buckeye have increased substantially during the past three years. However, the number of intermodal containers handled at the Marysville Intermodal Terminal has declined because Honda has increased its domestic sourcing, mostly from suppliers within 300 miles who truck automobile parts to the plant. The total number of containers and trailers inbound is about 10 percent higher than the number outbound. The freight projection model estimated that the number of containers and trailers handled in the three Columbus intermodal terminals will increase from about 180,000 in 1993 to 270,000 in the year 2000 and to 390,000 in 2010 (see Table 3.2). The number of international containers, that is those coming from or destined for international locations, is expected to increase at an average annual rate of about 7.3 percent. Domestic containers, which are a new, small and rapidly growing market, are expected to increase at an average annual rate of 25 percent. RoadRailer and other new types of container equipment are expected to grow at an average annual rate of 10 percent. Both domestic containers and RoadRailers are expected to cut into the volume of piggyback trailers, which are expected to decrease by a ' bout 10 percent annually. The overall result is that container, trailer, RoadRailer and other types of movements are expected to increase at an average annual rate of about 4.7 percent annually. High and low ranges were forecast as well as the "most likely." (See Table 3.3.) The low range was forecast to be 293,000 containers annually, which is a 63 percent increase over number of containers handled in the Columbus area in 1993. This would occur if there is a substantial slowdown in the rate of growth of international containers from the historic rate of 7 to 10 percent annually, the domestic intermodal market develops less rapidly than expected, and trailers decline faster. On the other hand, if Cambridge Systematic, Inc. 3-7
3-8 Inland Port Infrastructure Study domestic container traffic develops faster than anticipated and new service/equipment, such as RoadRailer and the "iron highway" are implemented quickly, the forecast of containers and trailers could reach 372,000 in 2010. This is 47 percent higher than forecasted and three times the current number. While some steamship companies considered the "most likely" forecasts to be conservative, these were more in line with the expectations of some of the railroads. Neither had made forecasts of containers and trailers to 2010. Forecast of Truck Traffic There were estimated to be a total of 15,400 truckloads of goods daily in the Columbus area in 1990. Of this total, 10,900 were originating and terminating truckloads. Approximately 57 percent of these truckloads were associated with warehousing/distribution.. 25 percent with manufacturing and 18 percent with retail and other trips. In addition, there were about 4,500 truckloads passing through the Columbus area daily. The methodology used in making these forecasts was described earlier. Briefly, the volume of goods originating and terminating was forecasted based on the production of goods and inputs of materials in each economic sector. These were adjusted to truckload equivalents (full 40-foot long standard trailers) by taking into account weight and bulk characteristics of goods being shipped and received. Then truckloads were estimated by taking into account the size of trucks. Local deliveries are made using more small trucks and long distance movements mainly are by large trucks. It was assumed that most trucks were operating nearly full, which results in a conservative estimate of actual truck movements. The forecast of average daily truck movements indicated that there were a total of 16,200 originating and through movements in 1992/1993 and that this would increase to 18,400 in the year 2000 and then to 21,800 in 2010, in the "most likely" case. In 2010, 15,400 would be originating and terminating truck trips and 6,400 would be through truck trips. The 2010 forecast of average daily truck trips is 34.6 percent higher than the level in 1993. Both low and high forecasts of truck movements were made (see Table 3.3). In the low scenario, in which the Columbus area would expand less rapidly and wholesale/distribution would not grow as fast, average daily truck movements would total 19,700 in 2010, which is 10 percent less than in the "most likely" case. In this example, domestic containers and RoadRailer/Iron Highway types of technologies would cut into the long-haul truck market. In the high scenario, there would be 25,400 average daily truck movements, about 17 percent higher than the "most likely" scenario. The rapid rate of expansion that is forecasted in warehousing/distribution and ------------------------------------------------------------------- Cambridge Systematic, Inc. 3-9 Inland Port Infrastructure Study the increasing share of goods in Columbus hinterland handled through its intermodal facilities suggest that the number of truck movements should reach the level forecast in the "most likely" scenario and it is probable that they will be higher. Forecast of Air Cargo In 1993, it was estimated that a total of 108,000 tons of air cargo and mail were handled at Port Columbus International Airport and at Rickenbacker International Airport. Excluding mail, Rickenbacker International Airport handled about twice as much air freight and cargo as Port Columbus International Airport. It is forecasted that air cargo will more than double by the year 2000, reaching 240,000 tons; by the year 2010, it will nearly quadruple, reaching 404,000 tons. Most of the growth in air freight and cargo is expected to be handled at Rickenbacker International Airport. It is expected that international air cargo operations will increase rapidly, especially with improved backhauls. The Aviation Consultant expects that a small international hub operation will be established at Rickenbacker International Airport, growing out of the expansion of current international operations and negotiations that are underway with several airlines. The rate of growth in air freight and cargo at Rickenbacker International Airport is expected to average about nine percent annually. The growth of air cargo and mail at Port Columbus International Airport is expected to reflect a continuation of past trends, averaging about six percent annually. The conservative forecast indicates that total air freight and mail for both airports would almost double by 2010, reaching 197,000 tons (see Table 3.3). In this scenario, no international or domestic air freight hub would be established at Rickenbacker International Airport, so it represents normal growth in air freight, more or less paralleling the national rate of growth. In the high alternative, a domestic air cargo hub (such as a package or mail hub) would be established at Rickenbacker International Airport and total freight and mail handled at the Airport would total more than one million tons annually. The Aviation Consultant expressed the opinion that there is some possibility that a hub might relocate to Columbus, a satellite package hub might be established, or a new cargo/ package airline might base its operations at Columbus. A domestic hub, which is one of the scenarios presented in the Airport Master Plan, would result in a tenfold increase in air cargo. 3-10 Cambridge Systematic, Inc. Inland Port Infrastructure Study - 3.4 Forecasts of Warehousing and Distribution In 1993 there were about 86 million square feet of warehouse/distribution space in the Columbus area. This occupied nearly 4,000 acres of land, or about 6.2 square miles. More than one-half of this space was associated with warehouse/distribution/wholesaling operations, almost one-third was associated with manufacturing plants and the remaining 15 percent was approximately equally divided between government (such as the Defense Construction Supply Center), retailing and other activities. The "most likely" forecast of warehouse/distribution indicates that its space will increase by 56 percent, reaching 134 million square feet and occupying about 9.6 square miles in 2010. Private and public warehouses are expected to increase by 80 percent. Mixing warehouses, in which goods are brought from long distances into a central warehouse that supplies a large number of retail stores (and other activities) within a one day drive (250 miles) of Columbus, are expected to continue to grow rapidly. Also major national distribution warehouses, such as those operated by Consolidated Stores Corporation, The Limited, and Spiegel's, are expected to continue to expand rapidly. On the other hand, warehouse facilities associated with manufacturing only are expected to expand about one-third as rapidly. Warehousing associated with government activities will show little overall growth. There may be some reduction of federal warehousing activity which will be more than offset by the expansion of state and local warehousing and storage. Under the low scenario, warehousing/distribution would be about one-sixth less in 2010 than in the "most likely" case, reaching about 113 million square feet. Reasons for lower overall growth are that there would be a greater reduction in government-related (especially Department of Defense) warehousing, manufacturing-related warehousing would expand at a slower rate and Inland Port-related transportation improvements by private companies (such as rail lines) would be implemented slowly. This appears to be unlikely. Under the high scenario, warehouse/distribution space would be about 13 percent more than in the "most likely" case, and nearly double the current amount. There is good likelihood that this higher expansion will be achieved, especially if the Inland Port development program is implemented and the aggressive marketing program is undertaken as planned. ------------------------------------------------------------------- Cambridge Systematic, Inc. 3-11 Inland Port Infrastructure Study 4.0 Implications of Forecasts for Infrastructure Requirements - 4.1 Introduction The forecasts indicate that some intermodal and related transportation facilities in the Columbus area must be expanded. The intermodal rail terminals will need to almost double their capacity to handle containers. Warehousing and distribution activities will require approximately an additional 3.4 square miles of area for development. The growth of truck traffic will require the improvement of some roads, bridges, and thoroughfares and would benefit from improved traffic management. The increase in air freight will require additional cargo handling equipment and related facilities, but not major expansion of the airports. Some of the specific in- frastructure requirements are discussed in the following sections. - 4.2 Intermodal Rail Terminal Requirements Overview The number of containers and trailers handled at the three intermodal rail terminals is forecast to increase by 90,000 by the year 2000 and to more than double between 1993 and 2010, increasing by about 210,000. (See Table 3.2.) Unused capacity and currently planned expansions can accommodate about one- half of the demand through the year 2000 and about one-fourth of the total increase by 2010. The remainder will need to be accommodated by the expansion of existing terminals, mainly before the year 2000, and the continued expansion and/or addition of new terminals after the year 2000. Currently, there is sufficient unused capacity to handle about 30,000 containers and trailers at the three terminals. (See Table 4.1.) About two-thirds of this is at the Marysville Intermodal Terminal. However, this terminal is mainly operated to serve the Honda automobile plant and it is not ------------------------------------------------------------------- Cambridge Systematic, Inc. 4-1 Inland Port Infrastructure Study Table 4.1 Intermodal Rail Terminal Capacity and Forecasts Columbus Area, 1993 and 2010
Note: Intermodal terminals include NS's Watkins Road, Conrail's Westbelt Trailvan and Marysville/Honda-Conrail. Data is for the base case. Source: Transmode Consultants, Inc. and Cambridge Systematic, Inc. ------------------------------------------------------------------- 4-2 Cambridge Systematic, Inc. Inland Port Infrastructure Study certain how much of that capacity, if any, will be available for other users. Furthermore, the terminal is nearly an hour's drive from Columbus. The remaining unused capacity is mostly at Norfolk Southern's Watkins Road (Discovery Park) Intermodal Terminal, with a small amount at Conrail's Westbelt Trailvan Intermodal Terminal. Current Intermodal Facilities Norfolk Southern's Discovery Park (Watkins Road) Intermodal Terminal opened in February 1990. It is a two-track facility located on a 40-acre site which is on the west side of NS's switching yard. Currently, the Terminal can accommodate about 38 rail cars, 188 stacked units, and 321 wheeled units. Overhead loaders are used to handle containers and trailers. Norfolk Southern is planning to approximately double the capacity of the Intermodal Terminal in 1994. Two additional tracks will be added with a capacity of 76 rail cars, 300 stacked units, and 650 wheeled units. It is expected that the volume of containers will increase by about 50 percent during the next three years, reaching more than 60,000 units. Expansion will take place on a 20-acre site adjacent to the current facility on part of the land that NS owns in this area. Conrail's Westbelt Trailvan Intermodal Terminal is located on the east side of the Buckeye Yard, which is its main Columbus terminal. The Intermodal Terminal has direct rail access to Conrail's Western Branch main line to Toledo and the west, to its main line to Cleveland and the east, and to its Cincinnati line. The Intermodal Terminal can accommodate 100 rail cars and about 900 wheeled units. Seven storage tracks are also used for assembling trains. More than 80,000 containers and trailers are handled annually. In 1993, "K" Line decided to use Columbus as a distribution center for the area within about 300 miles. This has resulted in substantial new business for the Intermodal Yard and requires more area for storage of containers and related needs. The Marysville Intermodal Terminal was established as a joint venture between Honda and Conrail. It is located adjacent to the Honda automobile plant which is about 40 miles west of Downtown Columbus, near US 33. The Intermodal Terminal is served by a five-mile long rail spur from Conrail's Western Branch line. The Terminal is operated by PTL Transportation Services almost exclusively for Honda. This Intermodal Terminal opened in 1990 and is a spacious, well-designed facility. It has four tracks, a total capacity of 176 rail cars, and 700 wheeled units. Overhead loaders are used. Approximately 40,000 containers are ------------------------------------------------------------------- Cambridge Systematic, Inc. 4-3 Inland Port Infrastructure Study handled annually. Full inbound containers arrive on six dedicated container trains per week. Complete automobiles are shipped out in rail car carriers, not containers. Honda is increasing domestic sourcing of automobile parts, most of which are produced within trucking distance (300 miles), so the number of inbound containers is decreasing. Future Requirements Long-term expansion of the existing intermodal terminals to meet the forecast levels of container and trailer traffic may not be possible. Conrail's Westbelt Trailvan Intermodal Terminal is "landlocked." A few small (e.g., 10-acre) undeveloped parcels may be acquired but most of the rest of the surrounding area is developed for warehousing and other uses. The satellite container facility that is being established is not adjacent to the Terminal. Norfolk Southern has additional land for expansion at Discovery Park. However, this probably would be in a swampy area which might present environmental problems, as well as being difficult and expensive. it might result in more rail grade crossings at Williams Road. While expansion needs through the year 2000 might be accommodated at Discovery Park, it is not certain that all longer-term needs can be met at that location. One long-term alternative that has been suggested by the Rickenbacker Port Authority is expansion (or relocation) to an undeveloped area south of Watkins Road in the general vicinity of Rickenbacker International Airport. The future requirements do not all need to be met by the expansion of intermodal terminals. Small, scattered loading and unloading facilities may be used for RoadRailers and similar types of equipment, which are expected to handle an increasing proportion of intermodal freight, especially after the year 2000. However, the increase in domestic container traffic is expected to cut into trailer traffic, which will lead to an increase in the number of containers handled. This will partly offset the decrease resulting from the introduction of RoadRailers and similar systems. The conclusion is that existing intermodal terminal facilities may be expanded to meet most of the area's needs through the year 2000, especially if some traffic is shifted to the Marysville Intermodal Terminal. However, after the year 2000, it is very likely that a new intermodal rail terminal, especially for Conrail, will be needed in the area. Planning for the expansion of existing and new facilities will be carried out by the railroads who will build and operate them. Public agencies may be able to facilitate expansion in a variety of ways, including providing access roads and other infrastructure, zoning, and expediting development reviews. ------------------------------------------------------------------- 4-4 Cambridge Systematic, Inc. Inland Port Infrastructure Study - 4.3 Aviation Requirements Introduction Rickenbacker International Airport and Port Columbus International Airport have the basic aviation facilities required to accommodate their forecast increases in air freight and mail. Runways, taxiways, air traffic control, and other airport facilities that were primarily constructed for military or civilian passenger aircraft, are adequate for air cargo needs. There is sufficient basic airside capacity to meet short-term requirements. Some improvements will be required at both airports to handle the rapid growth in air cargo. These are described in the following sections and summarized in Table 4.2. Rickenbacker International Airport Rickenbacker International Airport generally has adequate facilities to meet short-term needs. Rickenbacker International Airport has a Category 11 instrument Landing System on its main runway which permits approaches to be flown when cloud ceilings are as low as 100 feet. Between 1981 and 1994, the "Capital Investment Summary" prepared by Rickenbacker International Airport indicated that a total of $262.6 million was invested on site. Investment by purpose is summarized in Table 4.3. The airfield and air cargo improvements listed above include a 273,000 square foot building for sorting packages built on a 60-acre ramp by the Flying Tigers during 1986/1987. This project involved private and public investment totalling about $60 million. Subsequently, Flying Tigers.was acquired by Federal Express and most of its operations were transferred to Indianapolis in 1989. The large ramp space is used by Federal Express and many other aircraft carrying air cargo. When Federal Express ceases to occupy the building, it is likely to continue to be used for air cargo. It would meet much of the projected air cargo needs through the year 2000, especially if it were converted to a joint use or multi-tenant building. Airport improvements that are planned, as air cargo increases and new development takes place, include a new entrance road, renovation and relocation of facilities as military uses are cut back and consolidated, building and utility improvements, purchase of new cargo handling equipment, and ramp upgrading. ------------------------------------------------------------------- Cambridge Systematic, Inc. 4-5 Inland Port Infrastructure Study Table 4.2 Air Freight, Port Columbus International Airport and Rickenbacker International Airport, 1993 and 2010
Note: 1. Tons are metric (2,200 pounds) 2. If a hub is established at RIA (Scenarios 2 and 3) then larger cargo/apron/runway facilities would be needed. 3. Data is for the "most likely" case. Source: Cambridge Systematic, Inc., Aviation Consultant and Master Plans for Port Columbus and Rickenbacker International Airports. 4-6 Cambridge Systematic, Inc. Inland Port Infrastructure Study Table 4.3 Rickenbacker International Airport/Rickenbacker Air Industrial Park, 1981-1994
Source: Rickenbacker International Airport. ------------------------------------------------------------------- Cambridge Systematic, Inc. 4-7 Inland Port Infrastructure Study The draft Airport Master Plan indicates that the primary short-term needs are for two new exit taxiways, at a cost of about $1.7 million. During the next five years, the pavement on the alternate runway (5L-23R) is expected to reach a "poor" or "failed" condition. The Aviation Consultant recommends that it be rehabilitated (at a cost of $1.3 million) or reconstructed (at a cost of $19.9 million). The 1991, "Port Columbus Reliever Airport Study," for MORPC recommended reconstruction of Runway 5L-23R, new taxiways, and other improvements totalling $26.9 million between 1990 and 1995, additional improvements costing $4.0 million between 1996 and 2000, and additional expenditures of $2.8 million between 2001 and 2010, based on the airport maintaining its current configuration. That report indicated that 90 percent of the costs would be borne by the federal government and five percent by the state. The remaining five percent ($1.7 million) would become locally. However, it is not certain that the federal and state government funding will actually be available. Expansion to maintain high quality complementary s