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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 PlanShipping on the Great Lakes

The University of Toledo

November 7, 2006

Intermodal

Transportation Institute


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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


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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


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The Great Lakes: An

Underutilized 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


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Dock Facility

Railroad Depot

Intermodal Facility

Upper Midwest

Intermodal Sites


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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

  • Prince Rupert

  • Canso

  • Mexican West Coast

  • 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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