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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 plan shipping on the great lakes

Marketing PlanShipping on the Great Lakes

The University of Toledo

November 7, 2006

Intermodal

Transportation Institute

slide2

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
slide3

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
slide4

The Great Lakes: An

Underutilized Resource

framework for a marketing plan
Framework for a Marketing Plan
  • Opportunities
  • Constraints
  • Process
  • Participants
  • Outcomes
  • Who is responsible for execution
opportunities
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
we are working to get the data to assess opportunities

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

slide8

Upper Midwest

Highways

slide9

Projected

Interstate Truck Traffic: 2010

congestion on the highways
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

slide11

Upper Midwest

Rail Map

rail congestion
Rail Congestion
  • Rail shipment: Containers or bulk cargo on ship
    • Sample data from Upper Midwest States
slide13

Dock Facility

Railroad Depot

Intermodal Facility

Upper Midwest

Intermodal Sites

international trade

International Trade

The Emergence of Global Sourcing

slide15

Current East to West Route for

Container into the Midwest

slide16

Alternate Routes for East to West Trade

  • Prince Rupert
  • Canso
  • Mexican West Coast
  • Panama to New Orleans
constraints
Constraints
  • Operating season
  • Scheduled service
  • Other
process
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
participants
Participants
  • Shippers
  • Carriers
  • Maritime Labor
  • Port Authorities
  • Federal and state agencies
  • Other
outcomes
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