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Freight Facility Location Selection: A Guide for Public Officials (2001) / Chapter Skim
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Pages 11-16

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From page 11...
... . Significantresearchexistsonthetopicofeconomicimpacts,benefits, andcostsoffreightandmoredetailcanbefoundinNCFRPProject23 final research report available asNCFRP Web-Only Document 1 (http://www.trb.org/Main/Blurbs/165743.aspx)  as well as U.S. DepartmentofTransportationreportssuchastheGuide to Quantifying the Economic Impacts of Federal Investments in Large-Scale Freight Transportation Projects from 2006. Impacts thus fall into several differentcategoriesandnotallofthemwillapplytoeachtypeof logisticscenter,buttheprincipalbroadcategoriesare: • EconomicEffects–includingconstructionimpacts,direct economicactivity,multipliereffects,andeconomic development/businessattractionand
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From page 12...
... FACILITy TyPE CASE STuDy DIRECT AnD InDIRECT JOBS FREIGHT VOLumE TRAnSPORTATIOn ImPACTS InlandPort VirginiaInlandPort (FrontRoyal,VA) 17directjobs,over8,000 indirectjobs 33,600containers (2008)
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From page 13...
... Direct Economic Activity at the Freight Facility Thedirectimpactsofthenewfreightfacilityincludethenumberof peopleemployedatthefacility,theirwagesandsalaries,changesin revenue(businessoutput) ,andanydevelopmentsdirectlyrelatedto thefacility.Freightfacilitiesalsogenerateincometothecommunity and state directly in the form of property tax, corporate income tax,salestax,andthevariouspermittingfeesthataccompanythe activitiesatthesite.Inadditiontothis,theregionandstatealsogain additionaltaxincomethroughtheincomeandpurchasingactivityof employeesandvendors.
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From page 14...
... Traffic Thelocationofthefacilitywillchangetrafficpatternsintheimmediate surroundingarea.Thismayresult in increasedtrucktrafficto/from thefacilitydependingonhighwayaccess,localtrafficpatterns,and Transportation effects isadirectimpact.Howthatemployeethenspendsthissalarylocally ongroceriesandhousingisamultiplied,indirectimpact.Theimpact ofthefacilitythusexpandsintothecommunity,state,andcountry. Economic Development/Business Attraction Freightfacilitiescanbeacatalystforeconomicdevelopmentthrough attractingothersuppliersorvendors toforman industryclusterof activity.Theymayalsospurnewdevelopmentorredevelopmentof existingproperties.Thesizeandtimingofeconomicdevelopment/ businessattractioneffectscanvarygreatlybyfacilitybasedonlocal landuseandzoningpolicies,economicdevelopmentincentivesand marketing, transportation connectivity benefits, and so on.  Effects include: • Redevelopment–Economicandfinancialgainsfromredevelopment of existing underutilized land, includingadditional job creation andincreasesinpropertyvalue.
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From page 15...
... Freight Facility Location Selection: A Guide for Public Officials 15 access.Facilitiesthatpromotetheuseofmodesotherthantruckmay helpkeeplongerdistancetripsonmoreefficientandcost-effective modes, thus reducingoverall truckVMT (vehiclemiles traveled) on local,regional,andnationalhighways. Congestion Congestiononroads,rails,airandseacancausecommunityconflict aswellasdelayingoodsreachingtheirdestinations.Congestioncan alsohavedirectfinancialimpactsasitincreasesshippingcostsand can lead to investment in infrastructure improvements to alleviate delays.Congestioncanalsohaveairqualityimpactsbasedonidling.
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From page 16...
... • Public Services – The community and region may also incur additional annual costs for firefighting, public safety, police, public works, and related services as a result of additional freightactivity. While all of these measures may not be applicable to every freightfacility,allofthesecostsandbenefitsshouldbeconsidered in undertaking an assessment of the economic and transportation effectsoffreightfacilities. Other public sector costs conflictsresultinginaccidentsduetochangesintruckVMT,aswellas criminalactivitiesaroundthefacilityitself.
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Key Terms

  • direct jobs
  • public sector
  • freight facility
  • transportation effects
  • freight transportation


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