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Marketing Plan Shipping on the Great Lakes

Marketing Plan Shipping on the Great Lakes The University of Toledo November 7, 2006 Intermodal Transportation Institute Situational Analysis U.S. transportation system is overwhelmed Passenger vehicle traffic will increase 50% by 2020 Freight traffic will increase by more than 50% by 2020

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Marketing Plan Shipping on the Great Lakes

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  1. Marketing PlanShipping on the Great Lakes The University of Toledo November 7, 2006 Intermodal Transportation Institute

  2. Situational Analysis • 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

  3. Trucking industry is challenged by: • New hours of service rules • High fuel costs • Shortage of drivers and equipment • Increased costs of drayage/cartage • Increased highway congestion

  4. The Great Lakes: An Underutilized Resource

  5. Framework for a Marketing Plan • Opportunities • Constraints • Process • Participants • Outcomes • Who is responsible for execution

  6. 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

  7. 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

  8. Upper Midwest Highways

  9. Projected Interstate Truck Traffic: 2010

  10. 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

  11. Upper Midwest Rail Map

  12. Rail Congestion • Rail shipment: Containers or bulk cargo on ship • Sample data from Upper Midwest States

  13. Dock Facility Railroad Depot Intermodal Facility Upper Midwest Intermodal Sites

  14. International Trade The Emergence of Global Sourcing

  15. Current East to West Route for Container into the Midwest

  16. Alternate Routes for East to West Trade • Prince Rupert • Canso • Mexican West Coast • Panama to New Orleans

  17. Constraints • Operating season • Scheduled service • Other

  18. 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

  19. Participants • Shippers • Carriers • Maritime Labor • Port Authorities • Federal and state agencies • Other

  20. 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

  21. Who is responsible for execution

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