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NCFRP
National
cooperative
Freight
Research
Program
Report 13
Sponsored by the
Research and
Innovative Technology
Freight Facility Location Selection: Administration
A Guide for Public Officials
OCR for page R2
TRANSPORTATION RESEARCH BOARD 2011 EXECUTIVE COMMITTEE*
OFFICERS
Chair: Neil J. Pedersen, Administrator, Maryland State Highway Administration, Baltimore
Vice Chair: Sandra Rosenbloom, Professor of Planning, University of Arizona, Tucson
Executive Director: Robert E. Skinner, Jr., Transportation Research Board
MEMBERS
J. Barry Barker, Executive Director, Transit Authority of River City, Louisville, KY
Deborah H. Butler, Executive Vice President, Planning, and CIO, Norfolk Southern Corporation, Norfolk, VA
William A.V. Clark, Professor, Department of Geography, University of California, Los Angeles
Eugene A. Conti, Jr., Secretary of Transportation, North Carolina DOT, Raleigh
James M. Crites, Executive Vice President of Operations, Dallas-Fort Worth International Airport, TX
Paula J. Hammond, Secretary, Washington State DOT, Olympia
Michael W. Hancock, Secretary, Kentucky Transportation Cabinet, Frankfort
Adib K. Kanafani, Cahill Professor of Civil Engineering, University of California, Berkeley
Michael P. Lewis, Director, Rhode Island DOT, Providence
Susan Martinovich, Director, Nevada DOT, Carson City
Michael R. Morris, Director of Transportation, North Central Texas Council of Governments, Arlington
Tracy L. Rosser, Vice President, Regional General Manager, Wal-Mart Stores, Inc., Mandeville, LA
Steven T. Scalzo, Chief Operating Officer, Marine Resources Group, Seattle, WA
Henry G. (Gerry) Schwartz, Jr., Chairman (retired), Jacobs/Sverdrup Civil, Inc., St. Louis, MO
Beverly A. Scott, General Manager and CEO, Metropolitan Atlanta Rapid Transit Authority, Atlanta, GA
David Seltzer, Principal, Mercator Advisors LLC, Philadelphia, PA
Lawrence A. Selzer, President and CEO, The Conservation Fund, Arlington, VA
Kumares C. Sinha, Olson Distinguished Professor of Civil Engineering, Purdue University, West Lafayette, IN
Thomas K. Sorel, Commissioner, Minnesota DOT, St. Paul
Daniel Sperling, Professor of Civil Engineering and Environmental Science and Policy; Director, Institute of Transportation Studies; and Interim
Director, Energy Efficiency Center, University of California, Davis
Kirk T. Steudle, Director, Michigan DOT, Lansing
Douglas W. Stotlar, President and CEO, Con-Way, Inc., Ann Arbor, MI
C. Michael Walton, Ernest H. Cockrell Centennial Chair in Engineering, University of Texas, Austin
ex officio members
Peter H. Appel, Administrator, Research and Innovative Technology Administration, U.S.DOT
J. Randolph Babbitt, Administrator, Federal Aviation Administration, U.S.DOT
Rebecca M. Brewster, President and COO, American Transportation Research Institute, Smyrna, GA
Anne S. Ferro, Administrator, Federal Motor Carrier Safety Administration, U.S.DOT
LeRoy Gishi, Chief, Division of Transportation, Bureau of Indian Affairs, U.S.DOT
John T. Gray, Senior Vice President, Policy and Economics, Association of American Railroads, Washington, DC
John C. Horsley, Executive Director, American Association of State Highway and Transportation Officials, Washington, DC
David T. Matsuda, Deputy Administrator, Maritime Administration, U.S.DOT
Victor M. Mendez, Administrator, Federal Highway Administration, U.S.DOT
William W. Millar, President, American Public Transportation Association, Washington, DC
Tara O'Toole, Under Secretary for Science and Technology, U.S. Department of Homeland Security, Washington, DC
Robert J. Papp (Adm., U.S. Coast Guard), Commandant, U.S. Coast Guard, U.S. Department of Homeland Security, Washington, DC
Cynthia L. Quarterman, Administrator, Pipeline and Hazardous Materials Safety Administration, U.S.DOT
Peter M. Rogoff, Administrator, Federal Transit Administration, U.S.DOT
David L. Strickland, Administrator, National Highway Traffic Safety Administration, U.S.DOT
Joseph C. Szabo, Administrator, Federal Railroad Administration, U.S.DOT
Polly Trottenberg, Assistant Secretary for Transportation Policy, U.S.DOT
Robert L. Van Antwerp (Lt. Gen., U.S. Army), Chief of Engineers and Commanding General, U.S. Army Corps of Engineers, Washington, DC
Barry R. Wallerstein, Executive Officer, South Coast Air Quality Management District, Diamond Bar, CA
*Membership as of June 2011.
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National cooperative Freight Research Program
NCFRP Report 13
Freight Facility Location Selection:
A Guide for Public Officials
Christopher W. Steele
CWS Consulting Group, LLC
Newton, MA
Daniel Hodge
HDR Engineering, Inc.
Boston, MA
Halcrow, Inc.
Cambridge, MA
Fitzgerald & Halliday, Inc.
Hartford, CT
Resource Systems Group, Inc.
White River Junction, VT
Subscriber Categories
Economics · Environment · Freight Transportation · Marine Transportation
Motor Carriers · Railroads ·Terminals and Facilities
Research sponsored by the Research and Innovative Technology Administration
T r a n s p o r tat i o n R e s e a r c h B o a r d
Washington, D.C.
2011
www.TRB.org
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national cooperative Freight NCFRPREPORT 13
research program
America's freight transportation system makes critical contributions Project NCFRP-23
to the nation's economy, security, and quality of life. The freight ISSN 1947-5659
transportation system in the United States is a complex, decentralized, ISBN 978-0-309-21354-7
and dynamic network of private and public entities, involving all Library of Congress Control Number 2011937874
modes of transportation--trucking, rail, waterways, air, and pipelines. © 2011 National Academy of Sciences. All rights reserved.
In recent years, the demand for freight transportation service has
been increasing fueled by growth in international trade; however,
bottlenecks or congestion points in the system are exposing the COPYRIGHT Information
inadequacies of current infrastructure and operations to meet the
Authors herein are responsible for the authenticity of their materials and for obtaining
growing demand for freight. Strategic operational and investment written permissions from publishers or persons who own the copyright to any previously
decisions by governments at all levels will be necessary to maintain published or copyrighted material used herein.
freight system performance, and will in turn require sound technical Cooperative Research Programs (CRP) grants permission to reproduce material in this
guidance based on research. publication for classroom and not-for-profit purposes. Permission is given with the
understanding that none of the material will be used to imply TRB, AASHTO, FAA, FHWA,
The National Cooperative Freight Research Program (NCFRP) is
FMCSA, FTA, RITA, or PHMSA endorsement of a particular product, method, or practice.
a cooperative research program sponsored by the Research and It is expected that those reproducing the material in this document for educational and
Innovative Technology Administration (RITA) under Grant No. not-for-profit uses will give appropriate acknowledgment of the source of any reprinted or
reproduced material. For other uses of the material, request permission from CRP.
DTOS59-06-G-00039 and administered by the Transportation Research
Board (TRB). The program was authorized in 2005 with the passage of
the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A
Legacy for Users (SAFETEA-LU). On September 6, 2006, a contract to NOTICE
begin work was executed between RITA and The National Academies. The project that is the subject of this report was a part of the National Cooperative Freight
The NCFRP will carry out applied research on problems facing the Research Program, conducted by the Transportation Research Board with the approval of
the Governing Board of the National Research Council.
freight industry that are not being adequately addressed by existing
The members of the technical panel selected to monitor this project and to review this
research programs.
report were chosen for their special competencies and with regard for appropriate balance.
Program guidance is provided by an Oversight Committee comprised The report was reviewed by the technical panel and accepted for publication according to
of a representative cross section of freight stakeholders appointed by procedures established and overseen by the Transportation Research Board and approved
by the Governing Board of the National Research Council.
the National Research Council of The National Academies. The NCFRP
Oversight Committee meets annually to formulate the research The opinions and conclusions expressed or implied in this report are those of the researchers
who performed the research and are not necessarily those of the Transportation Research
program by identifying the highest priority projects and defining Board, the National Research Council, or the program sponsors.
funding levels and expected products. Research problem statements
The Transportation Research Board of the National Academies, the National Research
recommending research needs for consideration by the Oversight Council, and the sponsors of the National Cooperative Freight Research Program do not
Committee are solicited annually, but may be submitted to TRB at any endorse products or manufacturers. Trade or manufacturers' names appear herein solely
time. Each selected project is assigned to a panel, appointed by TRB, because they are considered essential to the object of the report.
which provides technical guidance and counsel throughout the life
of the project. Heavy emphasis is placed on including members
representing the intended users of the research products.
The NCFRP will produce a series of research reports and other
products such as guidebooks for practitioners. Primary emphasis will
be placed on disseminating NCFRP results to the intended end-users of
the research: freight shippers and carriers, service providers, suppliers,
and public officials.
Published reports of the
national cooperative Freight research program
are available from:
Transportation Research Board
Business Office
500 Fifth Street, NW
Washington, DC 20001
and can be ordered through the Internet at:
http://www.national-academies.org/trb/bookstore
Printed in the United States of America
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The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific
and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. On the
authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal
government on scientific and technical matters. Dr. Ralph J. Cicerone is president of the National Academy of Sciences.
The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel
organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the
National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also
sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior
achievements of engineers. Dr. Charles M. Vest is president of the National Academy of Engineering.
The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members
of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the
responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government
and, on its own initiative, to identify issues of medical care, research, and education. Dr. Harvey V. Fineberg is president of the
Institute of Medicine.
The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of
science and technology with the Academy's purposes of furthering knowledge and advising the federal government. Functioning in
accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the
National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and
the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine.
Dr. Ralph J. Cicerone and Dr. Charles M. Vest are chair and vice chair, respectively, of the National Research Council.
The Transportation Research Board is one of six major divisions of the National Research Council. The mission of the Transporta-
tion Research Board is to provide leadership in transportation innovation and progress through research and information exchange,
conducted within a setting that is objective, interdisciplinary, and multimodal. The Board's varied activities annually engage about
7,000 engineers, scientists, and other transportation researchers and practitioners from the public and private sectors and academia,
all of whom contribute their expertise in the public interest. The program is supported by state transportation departments, federal
agencies including the component administrations of the U.S. Department of Transportation, and other organizations and individu-
als interested in the development of transportation. www.TRB.org
www.national-academies.org
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cooperative Research programs
CRP STAFF FOR NCFRP REPORT 13
Christopher W. Jenks, Director, Cooperative Research Programs
Crawford F. Jencks, Deputy Director, Cooperative Research Programs
William C. Rogers, Senior Program Officer
Charlotte Thomas, Senior Program Assistant
Eileen P. Delaney, Director of Publications
Scott E. Hitchcock, Editor
NCFRP PROJECT 23 Panel
Freight Research Projects
A. Ray Chamberlain, Fort Collins, CO (Chair)
Vann Cunningham, BNSF Railway Company, Fort Worth, TX
Anne V. Goodchild, University of Washington, Seattle, WA
Arthur Goodwin, Alameda Corridor Transportation Authority, Carson, CA
John "Jock" Menzies, The Terminal Corporation, Baltimore, MD
Jennifer L. Moczygemba, Texas DOT, Austin, TX
John C. Morris, Cushman and Wakefield of Illinois, Inc., Rosemont, IL
Roberta E. Weisbrod, Sustainable Ports, Brooklyn, NY
Edward L. Strocko, FHWA Liaison
Ann Purdue, TRB Liaison
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F ORE W OR D
By William C. Rogers
Staff Officer
Transportation Research Board
NCFRP Report 13: Freight Facility Location Selection: A Guide for Public Officials describes
the key criteria that the private sector considers when making decisions on where to build
new logistics facilities. The location of freight facilities can have both positive and negative
economic and social effects on local communities, regions, and states. By providing insight
on location decisions for freight facilities, and suggesting best practices for transportation,
land use, economic development, and regional partnerships, public sector agencies can ben-
efit from a fuller understanding of the dynamics of freight movement and the factors affect-
ing private sector location decisions. With this insight, public sector agencies may success-
fully plan for, attract, locate, and partner with freight-related activities in their jurisdictions.
Public officials at the state and local levels are frequently called on to consider the siting
of freight intermodal terminals, inland ports, and warehouses and distribution centers.
Decisions to pursue these facilities as economic development generators--as a supporting
function for current and future businesses or in response to outside proposals--have a
greater potential for success when the public sector understands the private sector financial
and transportation drivers. A limited understanding of these critical site-selection drivers
can lead public officials to expend time and resources on flawed strategies to attract facilities
and react incorrectly to facility proposals. For instance, they may not understand the differ-
ences between international and domestic freight markets in the supply chain, the various
functions they provide, or their respective support requirements. This can ultimately lead
to inefficient transportation systems and failed economic development strategies. To for-
mulate effective economic development strategies and react appropriately to proposals for
the development of public or private freight facilities, public sector decision makers should
have the benefit of a better understanding of these drivers and impacts.
Under NCFRP Project 23, CWS Consulting Group, with the assistance of HDR Engineer-
ing, Halcrow, Resource Systems Group, and Fitzgerald & Halliday, was asked to develop a
guide to (1) inform public sector freight policy and decision makers about the key criteria
that the private sector considers when determining where to locate new freight facilities, (2)
inform the public sector about the complexity of the various facility types and the role they
play in goods movement and supply chain management, and (3) enhance the potential for
successful projects. A final report that provides background material used in the develop-
ment of this Guide has been published as NCFRP Web-Only Document 1: Background
Research Material for Freight Facility Location Selection: A Guide for Public Officials (NCFRP
Report 13), available at http://www.trb.org/Main/Blurbs/165743.aspx
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Table of Contents
Preface ix
Chapter 1: Introduction and Background 1
What is the purpose of this guide? 1
Who should use this guide? 3
How to use this guide 4
What do we mean by freight facilities? 5
Keys to freight facility development success 10
Chapter 2: Evaluating Freight Facility Impacts and Benefits 11
Economic effects 13
Transportation effects 14
Other public sector costs 16
Chapter 3: The Critical Roles of Groundwork and Collaboration 17
Laying the groundwork 19
Public sector assistance and incentives 22
Best practices for the public sector 25
Chapter 4: How the Location Selection Process Works 29
Site selection: the big picture 30
Stages of site selection 31
Planning and strategy 32
Network modeling and analysis 34
Location screening 35
Field and site analysis 36
Cost modeling 37
Incentives, negotiations, and final selection 38
Chapter 5: How Candidate Sites Are Evaluated 39
Ability to access key markets or customers 40
Interaction with transportation networks 43
Labor and workforce 48
Total cost environment 49
Freight Facility Location Selection: A Guide for Public Officials vii
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Availability and cost of suitable facilities 50
Utilities 52
Permitting and regulation 52
Tax environment 52
Public sector assistance and incentives 53
Climate and natural hazards 53
Weighing site selection factors 53
Chapter 6: The Changing Landscape (Complicating Factors) 55
Changing role of the freight facility 55
Changes in global sourcing 56
Fuel costs and environmental factors 58
Organizational factors and comprehensiveness 60
Computer model use and sophistication 60
Transportation network congestion 61
Competition with other types of development 62
Appendix A: List of private sector interviewees 63
Appendix B: Glossary of terms 64
viii Freight Facility Location Selection: A Guide for Public Officials
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Preface
This guide for public sector officials is made possible by funding
from the National Cooperative Freight Research Program (NCFRP)
of the Transportation Research Board. The guide is a companion
to, and results from, research contained in the final report for
NCFRP Project 23: "Economic and Transportation Drivers for
Siting Freight Intermodal and Warehouse Distribution Facilities,"
published as NCFRP Web-Only Document 1 (http://www.trb.org/
Main/Blurbs/165743.aspx).
The objective of this research is to develop a guide that:
1. informs public sector planners and decision makers about
the key criteria that the private sector considers when
siting logistics facilities,
2. informs the public sector about the complexity of the
various facility types and the role they play in goods
movement and supply chain management, and
3. enhances the potential for successful projects.
Both the technical report and this guide were developed by a
project team consisting of:
· CWS Consulting Group, LLC
· HDR Engineering, Inc.
· Halcrow, Inc.
· Resource Systems Group, Inc.
· Fitzgerald & Halliday, Inc.
Special thanks to CWS Consulting Group, LLC, Halcrow, Inc., and
Fitzgerald & Halliday, Inc. for photographs and graphics.
Freight Facility Location Selection: A Guide for Public Officials ix
