Background Research Material for Freight Facility Location Selection: A Guide for Public Officials (NCFRP Report 13) (2011) / Chapter Skim
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68 8.5 Rickenbacker Intermodal Rail Facility – Columbus, Ohio Introduction Figure 8-2 Rickenbacker International Airport Facility Type: Intermodal Facility Rickenbacker Intermodal Rail Facility is an intermodal terminal operated by Norfolk Southern Railroad (NS)
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69 site which would allow for expansion by the railroad itself as well as for attracting other companies to colocate at the site. Such development would allow for these shipping and warehousing companies to operate more closely (and efficiently)
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70 the central rail hub of Chicago, which is important for rail movements of international shipments from the West Coast of the United States. Environmental and acquisition considerations for development of the facility included the habitat of the Indiana bat and ensuring that this species would not be negatively impacted.
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71 The intermodal containers are generally filled with a broad variety of consumer goods and move from ocean to rail to truck within the same container, improving the overall efficiency and transport costs. The improvements to the Heartland Corridor will also allow for more double-stacked trains to pass through the Rickenbacker facility.
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72 facility was served on (including the Heartland Corridor)
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73 human environment and therefore the project does not require an environmental assessment (EA) or environmental impact statement (EIS)
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74 To finance development, Safe Handling secured a low-interest loan from the Auburn Business Development Corporation (ABDC) for land acquisition, equipment, and working capital.
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75 Central Manufacturing Facility 65,000 sf Used for Chemical Manufacturing Standalone Manufacturing Facility 9,000 sf Used for Chemical Manufacturing Rail-to-truck Transloading Gantries Six gantries available Source: Savage Safe Handling Website The Auburn site is large enough to store several hundred rail cars. This capability was expanded after the site was originally established.
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76 Transportation Access The main facility, which houses the administration building, a large plastics manufacturing building, and a large rail yard where many products are transloaded/handled, is connected via rail to the Port of Auburn. The Port of Auburn consists of five tracks and is owned by Savage Safe Handling and is switched/serviced seven days per week by the St.
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77 Information gaps regarding site selection criteria of the Savage Safe Handling facility includes specific financing arrangements for Savage Safe Handling's sites. Summary of Location Factors In summary, the primary location factors (as described/defined in Chapter 5)
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78 Transportation Impacts Every year, Savage Safe Handling handles 500,000 tons of freight coming in by rail and leaving by truck.15 Table 8-6: Railroad and Truck Freight Transportation The facility transloads/handles 5,000 rail cars per year, with one rail car generally moved into four truckloads upon arrival at the facility. Railcar/Trucks per Year Average Length of Haul Annual Tonnage Railroad 5,000 n/a 500,000 tons Truck 20,000 150 miles 500,000 tons Source: Interview with Savage Safe Handling and website Savage Safe Handling indicated that they make a concerted effort to choose transportation options that are more "green" than others.
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79 Due to the configuration of the store network, the siting and need for this new facility was concentrated on serving markets in Florida, the southern half of Georgia and Alabama as well as southeastern Mississippi. Figure 8-6: Family Dollar Marianna Distribution Area As Family Dollar began their site selection process, there were 118 potential communities in the target region for the new facility.
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80 The Family Dollar distribution center is a 75-acre site within the larger 351-acre distribution park. The DC building has 26 acres of space under the roof with 1.1 million in square feet, has 32 foot high ceilings and 250,000 of the square feet are in mezzanine.
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81 Freight Facility Development Conditions As noted above, one of the key elements of the Marianna site selection was the strong local, regional and state-level support for this rural development projects. In particular, the public commitment to develop a distribution park facility with multiple large-site parcels helped ensure that this effort would produce a development impact beyond the Family Dollar facility.
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82 Local support for new development opportunities and jobs was very positive as there were very few homes near the site, so there were no "NIMBY" (not in my backyard) issues.
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83 truck trips or truck vehicles miles of travel (VMT) , the following estimates provide an approximation of total truck trips and VMT on the Florida and national highway system: Assuming 300 working days per year, and counting both inbound and outbound trips, that equates to 54,000 annual truck trips related to the Family Dollar distribution facility; and Assuming an average of 300 miles for inbound and outbound shipments, truck VMT is approximately 16.2 million miles per year.
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84 Site Selection Factors and Facility Characteristics Physical Characteristics of the Site Murphy Warehouses owns and operates nine facilities within the MSP region, and six of these are either on or adjacent to rail sidings. In total, these nine facilities consist of approximately 2.4 million square feet of warehousing space.
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85 Commodities and Shipping Patterns Murphy Warehouses handles over 10,000 rail carloads a year at their six rail-served facilities, and over 76,000 truckloads. Smaller facilities can accept up to 15 carloads a week, while larger facilities can receive over 80 carloads a week.
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86 zones with funding based on the incremental increase in property value. The development turned a contaminated site into taxable real estate with growth in property value.
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87 By transporting freight via rail rather than truck, they reduce truck mileage by approximately 852 miles per truckload.17 If freight were to switch from rail to truck mode, the 10,000 rail cars would equate to roughly 27,400 trucks. 18 Freight traveling by rail reduces truck VMT annually by approximately: 1.3 million VMT.
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88 significant revenue through the movement of cargo and manufactured goods. The FAA agreed, and thus begun the public-private partnership between the FAA, Fort Worth, and Hillwood ― Mr.
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89 is directly accessible to the BNSF Alliance Intermodal facility, the BNSF rail line, Fort Worth Alliance Airport, and I-35W. It is also less than two miles from Texas Highways 170 and 114.
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90 Commodities and Shipping Patterns A large variety of freight moves through the AllianceTexas facilities. The largest commodities by value are consumer electronics, including phones, televisions and DVDs.
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91 The FTZ exempts resident companies from inverted tariffs, and manufacturers also avoid paying duty on products imported for manufacturing. This significantly reduces the costs of production.
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92 smaller businesses, none of which are required to submit activity data to the owner, aggregate tonnage figures were not available. This precluded independently estimating VMT and no figures were available directly from the facility.
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93 Inter-Regional Hub Service Centers Morristown, TN Atlanta, GA Dallas, TX Greensboro, NC Harrisburg, PA Indianapolis, IN Memphis, TN Rialto, CA Regional Hub Service Centers Albany, NY Fort Wayne, IN Birmingham, AL Jackson, MS Chicago, IL Jersey City, NJ Columbus, OH Kansas City, KS Denver, CO Parsons, KS Des Moines, IA Salt Lake City, UT Old Dominion has 12 regional hubs located across the United States as far east as Jersey City, New Jersey, and as far west as Salt Lake City, Utah. In addition, the company has eight inter-regional hubs, which are located in the larger metropolitan areas of Atlanta; Dallas; Greensboro, North Carolina; Harrisburg, Pennsylvania; Indianapolis; Memphis; and Rialto, California.
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94 Although both Tennessee cities generally met the three key requirements, the Morristown site was ultimately chosen based on a strong available workforce and Old Dominion was able to find adequate property at a reasonable price. Regarding the available workforce, the Morristown area of Tennessee has a strong furniture manufacturing history, and at the time that Old Dominion was considering developing a regional hub, furniture manufacturing was decreasing in the area and moving overseas.
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95 chemicals, and groceries. Shipping generally originates as far south as Dallas, heads to Morristown and then goes into the larger metropolitan areas of the northeast.
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96 It is not clear if Old Dominion's presence in the area has attracted additional businesses to the Morristown area. There is a Walmart Distribution Center located in the area; one in Shelbyville is approximately 20 miles away from Old Dominion's hub.
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97 Distribution Center Family Dollar 75 acres, 1.2 million sq ft for buildings Direct ramp to I-10 Highway Consumer retail goods Warehouse Murphy Warehouses Average 250,000 to 300,000 sq ft for buildings Rail, Interstate highways Food, beverages, paper, plastics Integrated Logistics Center AllianceTexas (Fort Worth, TX) 11,600 acres Two Class 1 Railroads (BNSF & UP)
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98 Table 8-10: Economic and Transportation Impacts of Freight Facility Case Studies Facility Type Case Study Direct & Indirect Jobs Freight Volume Transportation Impacts Inland Port Virginia Inland Port (Front Royal, VA) 17 direct jobs, catalyst to another 8,000 jobs22 33,600 containers (2008)
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99 (VIP) and Rickenbacker were both developed to address capacity concerns in existing facilities.
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100 Public Sector Assistance and Incentives As noted elsewhere in this report, public incentives do not drive location decisions at the strategic level. However, incentives become a potentially differentiating factor as companies narrow their list of potential sites.
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101 In addition to the capital costs of developing these facilities, the total cost environment criteria also considers operating costs, such as labor costs, tax exposure or fuel costs. Companies that rely primarily on truck transportation place particular emphasis on fuel and operating costs.
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102 Tax Environment The tax environment was not often cited as a primary site selection criterion. If mentioned as part of the site location decision, it was related to tax incentives.
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