marketing plan shipping on the great lakes the university of toledo november 7, 2006 intermodal...
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Marketing PlanShipping on the Great Lakes
The University of ToledoNovember 7, 2006
IntermodalTransportation Institute
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• U.S. transportation system is overwhelmed– Passenger vehicle traffic will increase 50% by 2020– Freight traffic will increase by more than 50% by 2020
• Cannot build enough highways and rail to meet demand
• China to become top US trading partner within three years
• Imports from Asia/China growing rapidly• US DOT has serious concerns about US distribution
system
Situational Analysis
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• New hours of service rules• High fuel costs• Shortage of drivers and equipment• Increased costs of drayage/cartage• Increased highway congestion
Trucking industry is challenged by:
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The Great Lakes: AnUnderutilized Resource
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Framework for a Marketing Plan
• Opportunities
• Constraints
• Process
• Participants
• Outcomes
• Who is responsible for execution
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Opportunities• Intra-lakes shipping (includes Canada & US)
– Cope with highway and rail congestion– Identify market segments well served by Great
Lakes shipping
• International trade– Seaway access– West coast access– Gulf coast access
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We are working to get the data to assess opportunities
We have a good start on the data from the Upper Midwest States
Freight Study
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Upper Midwest Highways
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Projected Interstate Truck Traffic: 2010
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Congestion on the Highways
• Traffic on I-80/90– Sample data from Upper Midwest States:
Projected Average of 14,700 Daily Truck Trips
on I-80 / I-90 between Cleveland and Chicago by 2010
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Upper Midwest Rail Map
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Rail Congestion• Rail shipment: Containers or bulk cargo on
ship– Sample data from Upper Midwest States
ORIGIN DESTINATION COMMODITY $Millions KtonsDetroit Chicago Basic chemicals 0.217 8.930Detroit Chicago Coal & n.e.c. 116.052 541.726Detroit Chicago Machinery 234.064 40.407Detroit Chicago Motorized vehicles 212.024 39.070Detroit Chicago Nonmetallic minerals 1.395 146.783Detroit Chicago Plastics/rubber 2.021 0.310Detroit Chicago Waste/scrap 19.649 526.151Buffalo Chicago Base metals 18.529 14.691Buffalo Chicago Basic chemicals 5.906 141.612Cleveland Chicago Base metals 14.334 78.851Cleveland Chicago Basic chemicals 47.741 52.862
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Upper MidwestIntermodal Sites
Dock FacilityRailroad DepotIntermodal Facility
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International Trade
The Emergence of Global Sourcing
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Current East to West Route for Container into the Midwest
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Alternate Routes for East to West Trade
1. Prince Rupert2. Canso 3. Mexican West Coast4. Panama to New Orleans
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Constraints
• Operating season
• Scheduled service
• Other
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Process• Leadership:
– GLMRI at University of Minnesota Duluth and University of Wisconsin Superior
– ITI and GISAG at University of Toledo– ICHCA International Limited
• Data-based analysis of current and potential markets
• Broad participation
• Information is public and available to all
• Other
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Participants
• Shippers
• Carriers
• Maritime Labor
• Port Authorities
• Federal and state agencies
• Other
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Outcomes• Market Segments are Identified
– Tonnage– Cargo value– Frequency
• Key decision makers for each segment are identified
• Sales approach and marketing plan for each identified segment
• Other
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Who is responsible for execution