BUFFALO NIAGARA INTERNATIONAL TRADE GATEWAY What is a
BUFFALO NIAGARA INTERNATIONAL TRADE GATEWAY What is a trade gateway? At a March, 2012 strategic planning session facilitated by UB’s Regional Institute, stakeholders evaluated a number of proven concepts related to regional logistics and trade and built a consensus around the appropriate strategic direction. Based upon Buffalo Niagara’s existing assets and other factors, the group determined that its work should focus on positioning our region as an international trade gateway International Trade Gateway • Integrated center for transshipment, storage, collection and distribution of goods, regionally-centered around a convergence point of rail lines, truck routes, water shipping routes and air transport modes and facilities • Heavily features “soft” infrastructure assets related to trade – customs brokerage, 3 PL, legal, financial, etc. – with an added emphasis on workforce development, education and training to ensure the strength of industry clusters served • May include a single location in a region or simply a philosophical and political connection of all of a region’s public and private sector assets
BUFFALO NIAGARA INTERNATIONAL TRADE GATEWAY What does that mean in English? • Coordinated marketing of Buffalo Niagara as an intelligent option for cross-border trade • “Single-window” facilitator for trade information resources • Cataloguing of regional trade assets • Collaborative engagement in regional planning discussions • Targeted advocacy to fill holes, open up opportunities • Leverage trade assets to support Buffalo Billion investments
BUFFALO NIAGARA INTERNATIONAL TRADE GATEWAY Why Buffalo Niagara? • Strong advanced manufacturing base • Skilled workforce • Second largest port of entry along the nation’s northern border • 15% of all trade between the U. S. and Canada • “One day’s trip” access to GTA and East Coast • Unmatched “soft” infrastructure for trade • Growing university support for logistics, supply chain, data
BUFFALO NIAGARA INTERNATIONAL TRADE GATEWAY What is the benefit to our region? • Every $1 billion in new exports generates approximately 5, 000 additional jobs • Between 2007 -2011, global companies in our region consistently earned three times more revenue than domestic companies • Create greater export opportunity for regional manufacturers • Create light manufacturing opportunities by interrupting throughput close to its border crossing • Well-situated geographically and politically to serve as an inland port to the Port of NY/NJ • Expertise and location (cost and time-to-market) are key drivers in decisions on where to do business ON A GLOBAL STAGE In 2012, the Buffalo Niagara region Z exported $9. 3 billion in machinery to markets including China, India, Germany, South Korea and Saudi Arabia
BUFFALO NIAGARA INTERNATIONAL TRADE GATEWAY Who else has made it work? Virginia Inland Port – Front Royal, VA “Development in the last 21 years surrounding VIP has been significant, as 39 major companies have located near VIP investing over $747 million and developing over 8. 5 million square feet of space. ” - Virginia Inland Port Case Study – www. freightlocation. org “At full build-out, LPKC will have in excess of 7 million square feet of vertical development, creating over 7, 700 direct and indirect new jobs and providing in excess of $1 billion economic impact to the State of Kansas. ” - www. kcsmartport. com “In a study conducted for the Winnipeg Airports Authority developing just a study conducted for the Winnipeg Airports Authority, developing just the lands west of the airport alone would generate 2, 600 jobs and $150 million in annual wages. ” - “Why Centre. Port Canada? Presentation” – www. fmi. ca
BUFFALO NIAGARA INTERNATIONAL TRADE GATEWAY How does Buffalo Niagara stack up? Logistics Capabilities Buffalo Niagara Cleveland Detroit Kansas City Memphis Airports 2 international airports 2 airports (1 international) 1 international airport FAA Air-Cargo Capacity Rank BUF #80, 280 mil. lbs. of landed cargo CLE; #65 DTW # 35, YIP #108 MCI #43, MKC #120 MEM: #1 No. of All-Cargo Air Carriers BUF: 4 CLE: 8 DTW: 2, YIP: 7 MCI: 4, 21 from KC Smart Port 22, Fed. Ex Super Hub location 1 Great Lakes: Port of Cleveland 1 Great Lakes: Detroit/ Wayne Co. 1 River: KC Smart Port 1 River: Port of Memphis I-70, I-35, 1 -29 I-40, I-55, I-240 Ports 1 Great Lakes: Port of Buffalo Road Access I-90, I-190, I-290, I-990 I-90, I-271, I-77, I-71 I-75, I-94, I-96, I-275, I-375, I 696 Rail Carriers 4 Class I: CSX, CN, CP, NS 2 Class I: NS, CSX 3 Class I: CSX, CN, CP 5 Class I: BNSF, UP, NS, CP, KC So. 5 Class I: BNSF, CSX, NS, UP, CN Workforce 775, 000 2, 100, 000 1, 000 613, 000 U. S- Canada Border Crossings 4 auto/truck & 2 rail 0 3 auto/truck & 2 rail 0 0 Foreign Trade Zones (FTZ) 2: No. 23, No. 34 2: No. 40, No. 181 2: No. 40, No. 210 (Port Huron) 1: No. 17 2: No. 77, No. 223 Multi. Major Pop. Centers w/in 250 miles Overnight: 152 U. S. metro markets 1 day: 55% of U. S pop & 65% of CA Location/ Proximity to Consumers pop. Destination Hub*
BUFFALO NIAGARA INTERNATIONAL TRADE GATEWAY Who’s involved? During the fall of 2011, over 40 regional stakeholders in logistics and trade engaged with the WNY Regional Economic Development Council as part of its Bi-National/Logistic Workgroup. Under the guidance of the WNY Regional Economic Development Council, approximately 50 stakeholders in logistics and trade participated in a strategic planning session in March, 2012. In June of 2012, the Buffalo Niagara Partnership’s Logistics Council was asked by the WNY REDC to convene stakeholders and move the trade gateway initiative forward. For the last 16 months, stakeholders representing both the private and public sectors have met at least bi-monthly to develop the International Trade Gateway strategic plan, which was rolled out on August 1.
BUFFALO NIAGARA INTERNATIONAL TRADE GATEWAY ITG Steering Committee Jack Ampuja Michael Casale Rick Crawford Nancy Dempsey Michael Glesk Samuel Ferraro Dr. Kathryn Friedman Christopher Johnston Anthony Kurdziel James Manno (CHAIR) John Manzella Rosanna Masucci Tim Mathien Kimberly Minkel Damon Piatek Nicole Rosso Jason Siembida Craig Turner Darrell Wilson Supply Chain Optimizers Niagara County Center for Economic Development Norfolk Southern Fed. Ex Trade Networks Continental 1 Niagara County Center for Economic Development University at Buffalo World Trade Center Buffalo Niagara Enterprise Sonwil Distribution Center Manzella Trade Communications Buffalo U. S. Export Assistance Center ROAR Logistics Niagara Frontier Transportation Authority Welke Customs Brokers Buffalo Niagara Partnership Pfannenberg, Inc. Buffalo Niagara Partnership Norfolk Southern
BUFFALO NIAGARA INTERNATIONAL TRADE GATEWAY Who have we engaged? • Port of NY/NJ • GBNRTC • CSX • Buffalo Niagara Partnership • Norfolk-Southern • Buffalo Niagara Enterprise • Port of Buffalo • World Trade Center Buffalo Niagara • NYS Department of Transportation • UB Regional Institute • Peace Bridge Authority • Canadian Consulate of Buffalo/NY • Niagara Falls Bridge Commission • Buffalo U. S. Export Assistance Center • Trans. Hub Ontario • NFTA
BUFFALO NIAGARA INTERNATIONAL TRADE GATEWAY What are the next steps? The International Trade Gateway strategic plan focuses immediate action on the formation of an entity to oversee the plan’s implementation, as well as coordination of a host of on-going initiatives • August 1, 2013 • Fall, 2013 (ITGO) • Spring, 2014 Strategic Plan rolled out “Road show” presentations to local elected officials, agencies; alignment with WNY REDC, Buffalo Billion, etc. Creation of not-for-profit entity: International Trade Gateway Organization Hire executive director for ITGO Build external relationships (e. g. shipping companies, other ports, GTA economic development) Regional rail and workforce assessments
BUFFALO NIAGARA INTERNATIONAL TRADE GATEWAY The Goal: Creation of a logistics ecosystem “Soft” Infrastructure / ”Know-how” External Relationships International Trade Gateway Proximity to Markets Intermodal Capabilities: Road, Rail, Air, Great Lakes Skilled Workforce Buffalo Billion Manufacturing Investment
BUFFALO NIAGARA INTERNATIONAL TRADE GATEWAY Priority Projects As outlined in the International Trade Gateway strategic plan, the steering committee – and ultimately the ITGO Board of Directors – will advocate for the completion of a number of projects critical to the creation of the trade ecosystem, including: • Peace Bridge U. S. Plaza Project(s) incl. pre-inspection • Niagara Falls International Airport Master Plan/NFIA Land Acquisition and Improvements • Portageville Bridge Replacement • Continental 1/Route 219 completion • CP Draw Bridge Replacement • Lewiston-Queenston Bridge U. S. Plaza Renovations
BUFFALO NIAGARA INTERNATIONAL TRADE GATEWAY Correlation with Buffalo Billion/REDC “A Strategy for Prosperity in WNY, ” the WNY Regional Economic Development Council’s award-winning 5 -year plan, calls for timely and concerted strategic action for WNY to take a primary position in the global trade, transportation and logistics network. The plan calls for coordination, key investments, improved operational relationships and effective promotion of the region. From “The Buffalo Billion Investment Development Plan” (Feb. 2013) “Other industry segments also have significant size and future job creation potential for the region. Some opportunities in these industries will flow from productivity investments to support the manufacturing, health and life sciences and tourism sectors that will have spillover effects – such as an increasing need for transportation and logistics to support a growing manufacturing sector. “ From “Initiatives for a Smart Economy” (June 2013) “Improvements to our intermodal capabilities will create a business climate conducive for international shippers and manufacturers, who will in turn bring new investments from outside our region. ” The ITG steering committee and stakeholders believe that current strategic initiatives – specifically those in manufacturing, life sciences and entrepreneurship – will be strengthened by making key investments in infrastructure and organizing regional trade assets.
BUFFALO NIAGARA INTERNATIONAL TRADE GATEWAY What do we need? • Governmental and business community buy-in • Requesting $500, 000 from Erie County in 2015 to support other matching funds to create an international brand marketing campaign that focuses on the available assets, excess capacity and international assets our region has to offer to the world • Funding for start-up of ITGO, hiring of executive director and operational costs (to be offset with other public, private investment) - $2. 2 MM • Governor Cuomo to facilitate high-level business relationship between ITGO and Port of NY/NJ • Logistics/trade private sector expert appointed to the WNY Regional Economic Development Council
BUFFALO NIAGARA INTERNATIONAL TRADE GATEWAY Important Upcoming Dates October 2 – Presentation to GBNRTC October 4 – Port of Buffalo Tour October 26 – Port of NY/NJ Port Industry Day October – Presentation to WNY Regional Economic Development Council November 12 – Presentation to Niagara County Econ. Dev. Alliance November – Niagara Falls International Airport Tour December 3 – Peace Bridge U. S. Plaza Renovations Public Hearing
BUFFALO NIAGARA INTERNATIONAL TRADE GATEWAY Questions? ITG Steering Committee Chair Jim Manno, Sonwil Distribution jmanno@sonwil. com
- Slides: 16