Economic Development News
Early results on the Multi Modal Port Feasibility Study are in
Published: Wednesday, December 20, 2017 1:00 pm
By: Randy Allen
The Preliminary Draft of the Phase 1, Central Missouri Multi‐Modal Port Project Feasibility Study was recently submitted by Cambridge Systematics to Chamber staff and stakeholders.
The following is some of the information and preliminary conclusions of the research provided by the Consultant, Cambridge Systematics, Inc: Some of the information has been excerpted from the Draft Report for this Article.
The Jefferson City Area Chamber of Commerce, Jefferson City, Cole County and Callaway County funded this study to assess the feasibility of a multimodal port facility in central Missouri. The port would potentially have one or more barge terminals on the Missouri River to help spur economic development in central Missouri region. The purpose of the current study is to assess potential market demand for a river port in the region and a formal Port Authority.
Missouri ports give the state’s businesses a logistical advantage over other states without port access. Transporting freight by water is often the lowest cost method of transportation, which provides businesses an advantage in negotiating freight rates between rail, truck, and barge modes. Public investment in Missouri’s port assets leads to private investments, which in turn creates economic opportunities in the short and long-term.
The ultimate success of a port facility in central Missouri in attracting users depends on its ability to add value in the supply chain. Ports can provide the means to optimize transportation-related costs associated with supply chains. While a facility has the potential to attract businesses providing additional auxiliary and value-added services, multimodal transfer facilities can be created and exist in absence of these additional developments. However, the port and distribution facilities by definition require the attraction and agglomeration of these value-added activities. Considering the potential in existing freight assets, freight-dependent industries, successes of other peer facilities, and future development plans, the findings of the SWOT analysis for a multimodal port facility in central Missouri are shown in Table 6.1
Overall the results show that there is a potential market for a port.
Table 7.9 and Figure 7.1 show the future catchment market by mode for 2020 and 2045. In 2020 and 2045, over 292.4 kilo and 412.3 kilo tons of freight will flow into and out of the catchment area, respectively. Of this, over 82 percent will move by truck in 2020. A significant share will also move by rail (around 18 percent). By 2045, the share of truck and rail from the total freight flow into and out of the catchment area will be 79 and 21 percent, respectively. This becomes the base from which the potential port demand is derived.
Applying the barge friendly commodity filter to the overall demand yields the potential market for a new port facility in the region.
Figure 7.2 presents the results for 2020 and 2045. In total, the maximum potential market for port traffic is about 80.1 kilo tons in 2020, of which 77 percent is diverted from truck and 23 percent from rail. By 2045, the maximum potential market for port traffic is expected to increase to 115.2 kilo tons, 73 percent of which accounts for commodities diverted from truck mode and the remaining 27 percent consists of commodity flows diverted from rail. In both 2020 and 2045, diversion from truck accounts for the majority of maximum potential market for port traffic. Capturing the truck market could give rise to more benefits as it provides additional cost savings to businesses and relieves some of the traffic demand on the region's roadways, potentially leading to maintenance and highway user savings.
Market and Commodity Information
The study team used market and commodity information during the development of the conceptual site plans for the two sites. The market information consisted of relatively high-level Freight Analysis Framework (FAF) commodity and tonnage data, as well as commodity information obtained through interviews with stakeholders and potential port users. The study team reviewed this market information and organized it by its freight movement direction (inbound versus outbound) and the general material handling requirements of the particular commodity involved.
The general market information is summarized in Table 8.1. Note that the multipliers in the table correspond to the number of stakeholders that expressed interest in possibly utilizing a port facility in the Jefferson City area for that commodity
In summary, a new port facility would need to capture a minimum of 30 to 40 percent of the potential market to be viable and self-sustaining. Given that only about 38 percent of the total market potential is with origin and destination greater than 500 miles, this means that the port would have to be competitive for shorter distance hauls which are more challenging.
The Chamber and Stakeholders will be reviewing the findings and other information including the recommendations for the proposed North and South sites. Consultant will submit the Final Phase 1 report in December. We look forward to sharing this information in the upcoming weeks and months.
**SOURCE for tables - Cambridge Systematics