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By Linda F. Jarrett
A quick look at comparable regions within a 300-mile radius turned up interesting information on how their infrastructure is progressing. All have interstates converging
within their metropolitan area and active air hubs. Rail and barge ports play a large part in three of the cities.
At the edge of Louisville’s business
district near the Ohio River, three interstates meet; I-64, I-71 and I-65. The largest two-bridge highway project in the United States was recently approved and entails the building of two bridges and rebuilding the Interstate junction. The $2 billion
project is in the design stage and is anticipated to be completed in 15 years.
| Louisville International Airport and WorldPort (a cargo sorting facility situated between the runways). |
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Bruce Traughber, cabinet secretary for community development, says the project meets a couple of needs for Louisville. “One is to clear up congestion in the interchanges and the other is to have a smooth transition into downtown between southern Indiana, the Louisville Metro area, and the surrounding counties.
“One of the bridges will be built in the downtown area and one in the east end,” he says “That will provide the missing link in an outer belt connector crossing the river, and that’s clearly major for us.”
As far as a transit system, Traughber says that the city utilizes buses, although they are looking closely at a bus rapid transit system.
Completed in the last five years was a second runway, costing over $300 million, for the Louisville International airport.
“Louisville is home of United Parcel Service,” Traughber says. “This is one of the top five air cargo facilities in the United States. This airport expansion made it possible for UPS to do a $1 billion WorldPort investment, a cargo sorting facility, between the runways. In 1998, that was the seventh largest economic development project in the world.”
CSX and Norfolk Southern railroads and their subsidiaries, serve the Louisville market due to the amount of traditional manufacturing.
Being within an eight-hour drive to half
of the population of the United States
also makes Louisville a prime location for trucking lines.
More tonnage moves through the McAlpine Lock on the Ohio River, than what passes through the Panama Canal in any given year, Traughber says. “The Army Corp of Engineers has a six-figure project on the board to rebuild and lengthen the locks to handle the larger tows that barges push today.”
While it may be Elvis’ hometown, Memphis, Tenn. boasts more than just Graceland and Beale Street. FedEx, the world’s largest express transportation company, also calls Memphis home. By shipping approximately 3.5 million pounds daily, FedEx contributes to the Memphis International Airport as the largest cargo airport in the world.
Interstates 55 and 40 meet in Memphis with two more on the “drawing board,” according to Mark Herbison, senior vice president of economic development at the Memphis Chamber of Commerce. “I-69, the ‘NAFTA Highway,’ which will run from Canada to Mexico, and I-22 running between Memphis and Birmingham,” he saiys. “We reach more metro markets overnight by truck than any other city in the country, and we can reach over 40 top metro markets in one day.”
Besides traveling through Memphis, five railroads have major facilities in the community. The second largest inland port on the Mississippi River, the International Port of Memphis, handles more than 18 million tons of cargo annually.
“We have a great infrastructure system here,” Herbison says. “It’s one of the reasons we have such incredible activity in regards
to logistics and manufacturing. Throughout
history, Memphis was a port city where
raw materials and finished products have been moved in and out for over one
hundred years.”
Of course, infrastructure is always in a state of flux, and Memphis is doing an
in-depth analysis of 45 county areas to assess its infrastructure.
“There are several ports up the Mississippi River in the Memphis region,” Herbison says. “And we are looking at them to see what capabilities and specialties they have, and how we can leverage those capabilities to recruit industry. We’re doing the same thing with our road system, our airport and our telecommunication system. We want to see what’s out there and how we can use those to promote industry to the region.”
With a population of 860,154, Indianapolis, Ind. ranks as the country’s 12th largest city. Its easy accessibility to major attractions from Downtown and its ability to lure top-notch sporting events attracts thousands of tourists each year.
Indianapolis is home to Eli Lilly and Company who is the city’s major employer. Other major companies include Roche Diagnostic Corporation, Dow AgroSciences, LLC and Allison Transmission.
Two major interstates, I-70 and I-65, run through the city with an outer connector loop, I-465, making all areas of the city accessible.
Mona Salem, deputy director of engineering for the City of Indianapolis Department of Public Works, says, “We have several major well-maintained corridors that connect the northern portion of the city to the southern portions. A lot of warehouses tend to be on the east side, and that area sees a lot of work.”
While the city does not have a large rail presence, they do engage in major air cargo activity. A $974 million project is currently underway at Indianapolis International Airport, including a new midfield terminal, concourse, parking garage and site improvements. Completion is due in 2007. Airport revenues along with a contribution from the federal government are funding the project.
A recently-completed $14.9 million expansion of I-70 allows direct access to a
business park south of the airport.
Mike Dearing, manager of the Indianapolis Metropolitan Planning Organization, said that Indianapolis does not have a viable transit system except busses. “We are
looking into a rapid transit system, and are studying the possibility of bringing light rail to Indianapolis.
“We’re experiencing the beginning of
congestion problems, but we’re not anywhere close to being critical like other metro areas,” he says.
Salem says the city spends its annual budget of approximately $50 million on upgrades, resurfacing and other upgrades to maintain the system. “We do a limited amount of road expansion with local and federal funding.”
The majority of city funding, limited primarily to transportation, comes from gas tax revenue which, according to City of Indianapolis Trans-portation Administrator Larry Jones, is dropping with the growing popularity of hybrids.
As they say, “Everything’s up-to-date in Kansas City,” and that goes for their transportation infrastructure.
With a convergence of three major interstates, (I-35, I-70 and I-29), Kansas City has more freeway miles per capita (1.43) than any other U.S. city. Over 300 trains arrive and depart daily making Kansas City the second largest rail hub in the country. Through its three airports, the Kansas City area moves more air cargo in a six-state area than any other region in the U.S.
| SmartPort, an organization fowarding the Kansas City metro area as America's Inland Port Solution, hopes to bring freight from Mexico directly to Kansas City. |
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Shipping American cars and electronics to Mexico will be easier with the May 2006 opening of the first Mexican customs office. The $3 million facility will usher thousands of trucks through export inspections and back out on the North American Free Trade Agreement corridor where they can pass through the border without further delays.
SmartPort, an organization forwarding the Kansas City metro area as America’s Inland Port Solution, is promoting the project.
Chris Guitierrez, SmartPort president says, “SmartPort is actually an economic development-based organization looking out for the transportation and logistics-based industry. We’re closely affiliated with the Kansas City Development Council, which is like the RCGA in that we work exclusively on transportation and logistics or, what we call, freight-based projects that are distribution centers and some manufacturers.
Last March, officials from Kansas City and Lazaro Cardenas, Mexico signed a cooperative agreement that established a trans-Pacific trade corridor to alleviate delays and congestion at West Coast Ports.
Kansas City roads have low levels of traffic congestion, although that is changing says Ron Achelpohl, assistant director of transportation for the Mid-America Regional Council. “Our biggest challenge is that our infrastructure is aging and the cost to maintain is growing.”
He explains that they did not think it was reasonable to continue to build new roads and bridges to address congestion issues. “So were looking at ways we can improve public transportation in the region.”
A transportation funding survey showed that residents overwhelmingly wanted the option to vote on a regional sales tax to fund public transportation, greenway and traffic management improvements for the Kansas City region.
Achelpohl says while the bus system is utilized and needs improvement, the interest in light rail has been low. “We are looking at the possibility of commuter rails that would Hershey Foods Company decided on Gateway to locate their 1.1 million-square-foot center, the fourth warehouse that is part of the company’s plan to improve customer service around the country.
Logistically Speaking
The St. Louis region is beginning to do something right since it is home to a growing number of major distribution companies.
James Pennekamp, former executive director of the Leadership Council of Southwestern Illinois, says that state
and local governments are “pro-distribution. These officials work with companies to help them locate here easily and
cost-effectively.”
The $65 million Gateway Commerce Center located in Edwardsville, Ill. is one example of various companies’ belief in this area’s advantage.
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 Hershey Foods Company
Hershey Foods Company decided on Gateway to locate their 1.1 million-square-foot center, the fourth warehouse that is part of the company’s plan to improve customer service around the country |
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 Dial Corporation
The Dial Corporation, also located in Gateway, is the company’s largest warehouse in the U.S. and is the site for 40 percent of the company’s total production. The Dial Corporation ships over 26 million cans of product annually. |
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 Unilever
Unilever, also housed in Gateway, sends out about 650,000 tons per year by truck, according to Ed Ehrenberger, facility manager for GENCO, logistics coordinator for Unilever. |
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 GlaxoSmithKline
GlaxoSmithKline, has been marketing Oscal and Tums in St. Louis since 1930, although it was here over 100 years ago under the name “Nature’s Remedy.” Steve Bishop, interim site director, says that, in 2005, the company produced 6.02 billion Tums tablets, which represented 257 million bounds of production. “Everything is by truck and we ship to regional distribution centers in the United States,” he says. “We’re the only manufacturing site for Tums, and if you stacked last year’s product end to end, it would go around the world more that 2.2 times at the equator!” That would cure a lot of heartburn! |
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 Anheuser Busch
Anheuser Busch’s St. Louis brewery produces 12 brands of beer, and shipped nearly 15 million barrels from the St. Louis location in 2005. Nearly 85 percent of the beer shipped from here is by truck. The remainder goes by rail to key distribution points. |
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