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Page 1: N FL Framework Plan report cover.psd
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OVERVIEW

INFRASTRUCTURE

MARKETS

BUSINESS CLIMATE

SUPPORT MATERIALS

December 2012

NORTH FLORIDA FREIGHT, LOGISTICS & INTERMODA L FR A MEWORK PL A N

Prepared for the

NORTH FLORIDA TR A NSPORTATION PL A NNING ORG A NIZ ATION (TPO) A ND SUPPORTING PA RTNER S

LOGISTICS A DVISORY GROUP (L AG)

Table of Contents1

2

3

4

Prepared by R S&HWith Support from Cambridge Systematics & Martin Associates

Martin Associates

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Need for a framework PlaNThe North Florida Freight, Logistics & Intermodal Framework Plan is a multi-phased, comprehensive, integrated and intermodal approach to identif ying and meeting future freight and logistics needs of the Northeast Florida Region. The plan seeks to define a common vision among the region’s partners; provide a policy framework; identif y short and long-term actions; and help ensure that elements and projects can be quickly placed within local and state plans for consistency and fiscal programming. This document summarizes Phases I & II and focuses on identif ying the Region’s most critical and immediate freight, logistics and intermodal opportunities and challenges. Future phases will include a prioritized set of long-range infrastructure and policy changes to ensure the Region’s long term position as a key gateway for the State of Florida and Nation.

1 | overview

DRAFT NORTH FLORIDA FREIGHT, LOGISTICS AND INTERMODAL PLAN

BUSINESS

CLIMATE

INTRODUCTION Infrastructure is the backbone to the freight and logistics industry, supported heavily by a

favorable business climate, which attracts and provides opportunity for economic growth and vitality in the North Florida region. The North Florida region’s logistics industry is working hard to position itself for significant growth, driven by domestic growth and emergence as an international global hub. This moment in time provides a tremendous opportunity for the North Florida region to cultivate an environment enabling business leaders to help the region maintain and elevate its economic competitiveness, encouraging job creation and retention, through a favorable business climate. This section describes how North Florida’s business climate is affected by regional, state, national and global trends related to demographics; plans and policies; and economic opportunities.

CONDITIONS AND OPPORTUNITIES

SUMMARY AND RECOMMENDATIONS

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For the purposes of this study, the North Florida Region consists of Baker, Clay, Duval, Nassau, Putnam and St. Johns Counties. With over 20 municipalities, its population surpasses 1.4 million and its land area covers 3,943 square miles. The region has an abundance of natural resources and a diversity of habitats, including the St. Johns, St. Marys, and Amelia rivers, the Intracoastal Waterway and the Atlantic Ocean.

In addition to being “geographically blessed,” there are several trends that drive the need for North Florida to further position itself as a freight, logistics and intermodal hub and gateway. These trends can be described in four broad categories:

{ Shifting Global and National Trade patterns

{ National Mobility, Energ y and Consumer Needs

{ National, State, and Regional Plans/Initiatives

{ Regional Growth and Support for Freight Infrastructure

Shifting Global and National Trade Patterns -

International maritime trade to and from the US has continually changed over the last 20 years. The changes include tonnage growth, market shifts and infrastructure investment. Examples of factors that have contributed to changes in logistics patterns and the growth in all-water services include: shifting overseas production centers; the aftermath of the events of 9/11 regarding national security; the West Coast port shutdown by the ocean terminal managers during labor negotiations with labor unions; port capacity issues including shortages of land and labor; a search for alternatives to the existing logistics patterns; and the national and worldwide economic crisis. To an extent, these changes have already impacted the freight flows into, out of and through the North Florida Region.

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National Mobilit y, Energy and Consumer Needs

As the nation prepares to add 130 million additional Americans by the year 2050 (America2050.org), the challenges of meeting infrastructure demands, competing in the global economy, and addressing major environmental issues are becoming increasingly significant. The mega regions concept - large networks of metropolitan areas, where most of the population growth will take place by midcentury - represents implications for the nation’s freight, logistics and intermodal system. Florida is included among the ten mega regions that have been identified in the United States. Additionally, the American Association of State Highway and Transportation Officials (AASHTO) state that the current capacity of our nation’s roads, rails and seaports is not keeping pace with demand. Greater investment, tactical planning and more highway and rail capacity are all needed to address these issues.

National , State & R egional Pl ans/ Initi atives

Recognizing potential implications from global and national trends, the State through the Florida Chamber Foundation and Florida Department of Transportation completed the Florida Trade and Logistics Study (2010) which identifies trade flows and recommends a comprehensive trade initiative for Florida. As presented in the timeline illustration, this study began to set the stage for Florida’s greater emphasis on the freight, logistics, intermodal, and transportation industry sectors. Concurrently, a national focus has also emerged.

america2050.org

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Timeline of Key Activities

2014

ICTF COMPLETED

2018

ST JOHNS RIVER CHANNEL DEEPENING OPENING YEAR

2011

2015

PANAMA CANAL EXPANSION

NATIONAL FREIGHT STRATEGIC PLAN

2013

CHANNEL DEEPENING STUDY

PHASE 2

2012

HOUSE BILL 599

MAP 21 ENACTED

On a national level, the transportation bill MAP-21, for Moving Ahead for Progress in the 21st Century (MAP-21) was signed into law on July 6. 2012. The bill provides a 27-month, $118 billion authorization. The new provisions of the law took effect October 1, 2012 and includes:

{ Mandate for the development of a National Freight Strategic Plan by U.S. DOT within three years, to be updated every five years. In August 2012, the U.S.DOT launched a Freight Policy Council to develop the National Freight Strategic Plan, and to work on other key freight provisions in the MAP-21 legislation

{ A national freight network of up to 30,000 miles critical to the movement of freight, will be identified by the U.S. DOT

{ The U.S. DOT is required to report on performance and conditions of the freight network, including the development of improved tools to assess the performance and evaluate the impacts of freight related projects

{ States are encouraged, but not required, to develop statewide freight plans with the oversight of a state advisory committee

Timeline of Key Activities

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The Plan’s Path Regional Listening

Forums (August -

September 2012)

CEO Level Forum (October 2012)

Scenario Planning Business Forum I (November 2012)

Plan Development (Stakeholder)

Business Forum II (December 2012)

Plan Development (FDOT/Consultant)

(January-March 2013)

Plan Review (Industry Stakeholders)

Business Forum III (March 2013)

Public Commentary (April-June 2013)

Plan Dissemination (June-July 2013)

Phase II Investment Plan

(July 2013 - August 2014)

The priorities emphasized in this bill include streamlining project processes to increase efficiency; accelerate project delivery; and eliminate duplication in an effort to focus limited public resources. Performance measures drive much of the funding allocations and direct money to those projects delivering the greatest relative benefits.

House Bill (HB) 599 (2012) is a cornerstone piece of State legislation in that it mandates the development of the Freight Mobility and Trade Plan with Phase I completed by July 2013. This ongoing effort has already elevated the dialogue between agencies, local governments, economic development groups, and industry leadership. Since the summer of 2012, FDOT has been engaged with key regions and stakeholders with regional listening , leadership and business planning forums.

Additionally, the State plan will be developed around 4 key goals:

1. Increasing the flow of domestic and international trade through the state’s seaports and airports

2. Increasing the development of intermodal logistic centers in the state

3. Increasing the development of manufacturing industries in the state

4. Increasing the implementation of compressed natural gas (CNG), liquefied natural gas (LNG), and propane energ y policies

Today, activity at Florida’s seaports is estimated to generate more than 550,000 direct and indirect jobs with $66 billion in economic value for Florida. Furthermore, with an average wage of $54,400, the state’s port workers earn more than double the average wage of all other non-degree workers. Clearly, North Florida should demonstrate its capabilities in meeting the goals and objectives of the State freight plan and economic initiatives related to the freight and transportation industry.

Source: fdoT - freight mobility and Trade Plan

Freight Mobility & Trade Plan

The goals for the creation of the plan are: 1. Increasing the flow of domestic and international trade through the state's

seaports and airports … recapture cargo currently shipped through seaports and airports located outside the state.

2. Increasing the development of intermodal logistic centers in the state … capitalize on the empty backhaul trucking and rail market in the state.

3. Increasing the development of manufacturing industries in the state … transportation facilities that will promote the successful development and expansion of manufacturing facilities.

4. Increasing the implementation of compressed natural gas (CNG), liquefied natural gas (LNG), and propane energy policies … that reduce transportation costs for businesses and residents located in the state.

Response to Florida House Bill 599 Approved on April 27, 2012 by signature of Governor Rick Scott, Florida House Bill 599 requires the Florida Department of Transportation to develop the Freight Mobility and Trade Plan.

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R egional Grow th and Support for Freight Infra structure

Cargo activity has an estimated annual economic impact of nearly $19 billion within Northeast Florida. From 2000 to 2010, the region’s population has increased by 19%, including the 4th fastest growing county (St. Johns) in the state. Additionally, North Florida’s geographic position as the gateway between the state of Florida, the fourth largest economy in the country, and the rest of the United States also means that surrounding statewide and national growth will place more freight onto the region’s interstates and rail networks.

Together with the region’s highlighted accomplishments, there has been increasing stakeholder recognition and support for the need to improve freight infrastructure within North Florida. Examples include the Jacksonville International Business Coalition ( JIBC) and the Logistics Advisory Group (LAG). The JIBC is a collaborative international business development effort between the Jacksonville Economic Development Commission and JAXUSA Partnership (formerly Cornerstone), a regional initiative and partnership of the Jacksonville Regional Chamber of Commerce. The JIBC’s Transportation and Logistics Committee has been a vocal supporter for advancing the region’s freight initiatives and supporting infrastructure improvements. The Logistics Advisory Group or LAG, a partner in this study, includes representatives from major logistics companies, transportation agencies, community leaders and transportation specialist that all agree that an integrated, intermodal transportation system is critical for our region to remain competitive in the global freight market.

From an economic perspective, the Innovate Northeast Florida Economic Development Strategic Plan, completed by JAXUSA and Northeast Florida Regional Council (NEFRC) in 2012, includes Advanced Transportation as one of three (3) industry ecosystems that differentiate the Region on a national and international level. Advanced Transportation includes many elements such as aviation, clean fuels, rail and port logistics, distribution centers and supply chain management. It is important to note the strong connection with the region’s economic development only serves to strengthen the argument of the relevance of the North Florida Region to Statewide related efforts and matching industry sector targets.

Source: Martin Associates, 2010 estimate based on TRANSEARCH, PIERS, and STB Rail Waybill data.

Imports 52.6 Million Tons

Exports 27.4 Million Tons

Within North Florida 18.6 Million Tons

North florida Trade flows, 2009

estimated domestic & international

Trade flows

Northeast FloridaInnovate

Unique Core Competencies

InformationTechnology

LeanManufacturing

RegulatoryCompliance

Military

Target Industry Ecosystems

• Aviation• CleanFuels• Rail&PortLogistics• PowerStorage• PropulsionSystems

• TrackingDevice& SecuritySystems• DistributionCenters• SupplyChain Management&IT

Advanced Transportation

Financial Services

• FinancialServices Support• DataCenters• Insurance

• FinancialSoftware &IT• TradeFinancing• WholesaleBanking

• HumanHealthCare&Wellness• MedicalTechnologies• HealthIT• FoodSafety• AgriculturalSciences

• MarineSciences• Insurance• Administrative Services• ComplexRegulatoryCompliance

Health & Life Sciences

www.innovatenortheastflorida.com

Industry Cluster Focus

AircraftandAviation

Components

FinancialServicesSupport

HealthCareIT

SupplyChainManagement/IT

InnovateNortheastFloridauncoveredthreeindustryecosystemsthatdifferentiatetheregiononaninternationallevel.Inaddition,theregionoffersseveraluniquecompetenciesthatrunthroughoutallofthetargetindustries.TheindustryecosystemsandcorecompetenciessetthestageforNortheastFlorida’slong-termgrowth.Thefirstphaseofimplementationhasprioritizedfoursub-clusters.

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Lastly, for the past two years, the Northeast Florida Regional Transportation Study Commission (RTSC) effort has explored the need for coordinating regional transportation in the seven county region including Baker, Clay, Duval, Flagler, Nassau, Putnam and St. Johns counties. Through this two year process, the RTSC evaluated growth and travel patterns, studied peer regions, and assessed potential gaps in providing regional mobility. As a result, the RTSC identified travel corridors of regional significance to provide connectivity and advance economic development for the region. Additionally, the RTSC has outlined a structure for implementing a regional transportation plan. A Northeast Florida Regional Transportation Commission (RTC) was recommended to be created. Their role will be to coordinate existing planners and implementers to advance a regional transportation plan and position our region to compete for economic growth while maintaining our high quality of life.

As part of the Regional Corridors Plan, an international water corridor was designated to include the Port of Jacksonville and Port of Fernandina and related rivers and waterways called the International Corridor (RC 9). In addition to designating a non-surface transportation corridor, the RTSC and its documents recognized the importance of the freight, logistics, intermodal and transportation industry as it relates to the regional economy and mobility.

The North Florida TPO will be incorporating the key work products of the RTSC within the 2040 Long Range Transportation Plan (LRTP) update scheduled for January 2013-November 2014. The region’s ability, in particular the TPO and FDOT, to collaborate on planning initiatives and to demonstrate connected modal systems is another testament to our region’s key role in meeting state transportation and economic development objectives.

regional Transportation Study Commission

(rTSC) Corridors

DRAFT NORTH FLORIDA FREIGHT, LOGISTICS AND INTERMODAL FRAMEWORK PLAN

INFRASTRUCTURE

RTSC Corridors The identification of freight related projects within stakeholder plans was completed in coordination with RTSC efforts to identify regional corridors and roadways. As a result of this coordination of plan processes, freight improvement priorities align with the region’s corridor framework and may be eligible for potential future funding of RTSC improvement needs.

IMPROVEMENT PRIORITIES Freight, logistics and intermodal facilities are vital to North Florida’s economy. Anticipated growth in the trade and logistics sector will place additional demands on the transportation system and will require additional infrastructure improvements. Careful planning of the region’s infrastructure is necessary to further position North Florida as a globally significant freight, logistics and intermodal hub.

Stakeholder Plans, Programs and Studies State, regional and local plans, programs and studies identify transportation infrastructure needs for North Florida. Many of these projects are directly related to freight movement. They are either on the SIS, emerging SIS, or planned by FDOT to be on the SIS (as in the case of the First Coast Outer Beltway and SR 9B). The projects may also connect an SIS corridor with an SIS hub; help facilitate travel between and near SIS hubs; near industrial areas; or serve as potential relievers to SIS corridors.

The freight infrastructure improvement priorities identified for this framework plan draw from multiple stakeholder plans and programs.

Florida Department of Transportation’s (FDOT) Five Year Work Program, Fiscal Year 2012-2016

FDOT SIS 1st Five Year Plan, 2012-2016 FDOT SIS 2nd Five Year, 2017-2021 FDOT SIS Cost Feasible Plan, 2020-2035 FDOT SIS Unfunded Needs Plan, 2040 (October 2011) Florida Rail System Plan: Investment Element (December 2010) Florida 2012 Priority Seaport Projects, Florida Ports Council Florida Seaport System Plan, FDOT, December 2010 North Florida TPO 2035 Adopted Cost Feasible Plan (Long Range

Transportation Plan – LRTP) North Florida TPO’s 2035 Adopted Needs Plan (LRTP) JAXPORT – Capital Project Summary, FY 2013 (5 Year Capital Plan) Port of Fernandina

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PlaN aPProaCh aNd ComPoNeNTSThis framework plan was developed around several key study areas including: understanding partners, evaluating peer regions/ports, and linking efforts to other initiatives. As with most industries, there are multiple groups and agencies with many roles and responsibilities. Understanding the players and various agency structures will serve to elevate the conversation regarding future plans, programs and initiatives.

Freight, Logistics , & Intermodal PartnersAs shown in the venn diagram, a framework plan for the region will connect with many public and private partners. The North Florida Transportation Planning Organization (TPO), together with the

Florida Department of Transportation (FDOT) will continue to play key roles in moving forward. From the State perspective, FDOT has been charged with preparing and executing a statewide freight initiative through the development of the Freight Mobility and Trade Plan and other related support activities and programs. Additionally, HB 599 includes several provisions regarding FDOT interface with the Florida Seaport Transportation and Economic Development Council as well as programs specific to ports such as the Strategic Port Investment Initiative and Intermodal Logistics Center Infrastructure Support Program, and the development of a Statewide Seaport and Waterways System Plan.

North Florida Freight, Logistics,

& Intermodal Framework Plan

• 2060 Florida Transportation Plan • Strategic Intermodal System (SIS) • Statewide Modal Plans • Florida Freight, Mobility & Trade Plan • 5-Year FDOT Work Program

Florida Department of Transportation (FDOT)*

• 2040 Long Range Transportation Plan (LRTP)

• Regional ITS Master Plan • Transportation Improvement

Program (TIP)

North Florida Transportation Organization (TPO)

• JAXPORT • Port of Fernandina • JAA & JTA • Cities/Counties • Military/USACE • NEFRC • US DOT

Local/State/Federal Agencies

• Florida Chamber Foundation* • Rail Carriers • Private Marine Terminals • Logistics Industry • JAX Chamber • JAXUSA Partnership

Private/Business Sector

North Florida Freight, Logistics, & Intermodal Framework Plan Partners & Stakeholders

* Florida Trade and Logistics Study, December 2010 (Joint FDOT and Florida Chamber Foundation Study)

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The North Florida TPO will continue to support the freight and logistics planning work through the 2040 Long Range Transportation Plan (LRTP), the Transportation Improvement Program (TIP), and other consensus based or regional convening efforts such as the ITS Coalition and Clean Cities initiatives. Working directly with the Logistics Advisory Group (LAG) and other business partners, the North Florida TPO continues to see success in advancing important freight supportive projects and studies. Another example of this is the on-going North Area/JIA Corridor: Future Rail Feasibility Study that is managed and jointly funded by the TPO and City of Jacksonville.

As noted, many local/regional entities will play roles in advancing this framework plan into implementation. For example, JAXUSA and the Northeast Florida Regional Council (NEFRC) jointly developed the Innovate Northeast Florida Economic Development Strategic Plan which will be adopted into both business related action plans with the Chamber and others, as well as public policy plans for the region.

Lastly, at the Federal level, the development of the National Freight Strategic Plan and the provisions of freight focused programs and processes of MAP-21 further support the “call for action” for the Region, given the extensive freight, logistics, marine terminals and intermodal infrastructure and its unique proximity to the State of Florida and eastern United States.

Linkages to Partner Pl ansAn evaluation was conducted on several partner plans and studies to gain an understanding of how the goals and missions align with the freight and logistics industry for the North Florida Region. As noted in the comparison circle graph, the following plans and programs were compared:

{ 2060 Florida Transportation Plan

{ Strategic Intermodal System (SIS) Plan(s)

{ 2035 Long Rang Transportation Plan (LRTP)

{ Northeast Florida Strategic Regional Policy Plan (SRPP)

{ Florida Chamber Six Pillars

{ Florida Trade and Logistics Study

{ Innovate Northeast Florida

{ Regional Transportation Study Commission (RTSC)

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W hile there are many other local, regional and state plans and programs that could have been included, the assessment of these eight (8) indicates a strong alignment with the ideas and precepts of the framework plan. For the purposes of this evaluation, relevant goals and objectives from the evaluated plans were categorized into the three (3) building blocks of the framework plan: Infrastructure, Markets, and Business Climate.

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whaT we have learNed?A competitive analysis was conducted for peer regions and ports to gain an understanding of their plans, processes and strategic missions. W hile each peer region and port has unique characteristics regarding infrastructure, markets and business climate, all peers were consistent in organizing around these three topical areas. Furthermore, there were three strategic areas that were focused on by the peer regions and ports. The three strategic areas included: Planning , Partnerships, and Process.

Pl anningThe relevant aspect of planning is that most of the peers have developed short and long range plans, strategic visions, and capital improvement programs. As important is the commitment to planning being a continuous effort with on-going updates and enhancements. The North Florida Region has taken a leadership role in regional planning and the State of Florida has also ratcheted up the evaluation, commitment and development of plans to support industry growth.

PartnershipsAgain, most of the peers included specific partnering actions that include the emerging Private/Public Partnerships (P3), but also encouraged significant partnering between various governmental entities at the local, state and federal levels, with an emphasis on local and state partnerships. For Georgia, South Carolina and Virginia, State Port Authorities provide an advantage to these types of partnering. Lastly, the opportunity to promote Private-Private partnerships is not new but may offer a renewed opportunity for the freight industry and port operations. The railroads and shippers have developed extensive agreement instruments, however, there is a renewed level of cooperation between shippers and terminal operators with the development of market based services where multiple shippers cooperate on scheduled services using mixed corporate vessels.

ProcessAt all levels of government and business lies a set of policies, procedures and permitting requirements. The research conducted reveled that the peers and regions developed specific approaches to understanding the process requirements at all levels and strived to be part of the process rather than viewing it as an impediment to overcome. Streamlining processes has garnered much attention nationally and at the state level. Florida too is continuing to review processes that can be improved to facilitate decisions, reduce approval timelines and provide the level of certainty the private/business sector requires to make commitments.

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here iS whaT we kNow.The North Florida region is strategically positioned to continue to build upon our successes in the freight, logistics, intermodal and transportation industry sector. W hile much has been done to improve infrastructure, market reach and business climate for the region, there are several key variables/components that provide the foundational building blocks for continued growth and success.

Geography North Florida and its two deep water ports in Jacksonville and Fernandina are physically in a prime location relative to the eastern seaboard. These ports are in fact the WESTERN MOST ports along the eastern seaboard. In fact, North Florida ports lie along a north-south line with Cleveland Ohio!

Connectivit yThe level of connectivity to the North Florida region is unmatched. From a highway perspective, having Interstate 95 running through our region connecting the east coast of the US with Florida is impressive alone. However, our region also serves as the east coast terminus for Interstate 10 which connects our region along an east-west route to the southwest, western states, and Pacific Ocean. A third interstate, I-295 connects both of these interstates and provides direct access to major JAXPORT and other marine terminals, along with two rail intermodal yards for CSX and Norfolk Southern railroads. Just 15-20 minutes west along I-10 is Interstate 75, the nation’s central spine connecting Florida, southeastern and midwestern states.

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From a rail perspective, North Florida sits at a key junction for three railroads, CSX, Norfolk Southern (NS) and Florida East Coast (FEC). In fact, CSX, headquartered in Jacksonville, maintains the largest rail network in Florida and will soon provide enhanced connectivity to the Dames Point and Blount Island marine terminals with the Intermodal Container Transfer Facility (ICTF) at Dames Point. Norfolk Southern maintains its Florida terminus in Northwest Jacksonville and provides direct service to the Talleyrand Marine terminals, other key sites along the St. Johns River, and inland facilities. Florida East Coast also maintains corporate operations in North Florida and its northern terminus is located in Jacksonville including a river bridge in Downtown that facilitates connections to the CSX and NS railroads.

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L and Ba sed Infra structure North Florida maintains a significant amount of support infrastructure such as distribution centers, warehousing , industrial and manufacturing facilities. In fact, this region includes more than 100 million square feet (SF) of such space and has added nearly 10 million SF in the past 5 years, including 1.1 million SF in 2012. The opportunity to grow this sector is significant given the amount of developable land at existing sites, as well as growing areas such as Cecil Commerce Center in Duval County just north of Clay County, the Crawford Diamond site in Nassau County, and the Woodstock Industrial Site in Baker County, to name just a few. Developing a comprehensive assessment of the region’s existing and future (planned) land based infrastructure is a key recommendation.

M arketsNorth Florida ports and intermodal systems have continued to grow, even during the great recession. Three strong examples include growth in containerized units (TEUs), autos, and steel exports.

For JAXPORT, 2009 through 2012 has seen continued growth in both container TEUs and the number of automobiles, known as RORO, for roll-on-roll-off. As depicted in the tables, the number of TEU’s has grown to over 923,660 TEUs in 2012. This represents a record number, as well as being the Number 1 container port in Florida. 2012 also saw JAXPORT grow to become the Number 1 port for vehicle exports in the United States. Similar to the containers, the total number of auto units handled at these facilities grew since 2009 to total 608,726 vehicles for 2012. An example of this growth includes the exporting of new Honda CR-V SUVs manufactured in Liberty, Ohio beginning in 2012.

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The Port of Fernandina saw continued growth as well. For 2011-12, the Port saw its steel exports exceed 318,000 short tons and represents the largest steel export port in Florida. This niche market in Fernandina accommodated 75% of the steel rods arriving to the port via rail.

Clearly, the geography, rail, highway and marine infrastructures provide the needed support facilities to leverage the market business decisions that have occurred in the past few years.

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“The Big 3” – STaTuS uPdaTeW hile the framework plan is geared toward a continuous planning process and plan enhancements, much of the news and regional conversations have surrounded three (3) large infrastructure projects that are ongoing and soon to be reaching key milestones.

Mile Point Navigational FixThe Mile Point Navigational fix project will rectif y an issue with river currents related to the Intracoastal Waterway and St John’s River confluence. This navigational impediment limits the number of hours certain larger ships can navigate this portion of the river and therefore limits the hours of loading and off-loading at the docks. Key milestones for the project include:

{ Pre-construction design completed May 2013

{ Estimated construction completed 2016-17

Intermodal Container Transfer Facilit y (ICTF)

The ICTF at Dames Point represents a important intermodal improvement that will provide near-dock loading and off-loading of containers to and from ships and rail cars. For imports, the ICTF will allow for the “building” of trains and blocks near the arrival docks, therefore eliminating the need to dray the containers via trucks to the rail intermodal yards on the Westside of Jacksonville. The ICTF, at $30 million was made possible with funding from the FDOT and a US DOT TIGER Grant of $10 million. The success of the TIGER grant was due to the regional cooperation of many players that developed a focused and single application for the program. Key milestones for the project include:

{ Procurement of Design Build contractor – early 2013

{ Construction completed late 2014-15

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Jacksonville Harbor DeepeningThe deepening and widening of the Jacksonville Harbor in the St Johns River represents the largest of the three projects and has been ongoing for a number of years. On July 19, President Barack Obama named two JAXPORT projects to a list of seven priority infrastructure projects, pledging to accelerate the federal review process. The president has committed that the Jacksonville Harbor Navigation Deepening Study will be completed by April 2013, approximately one year ahead of schedule. Key milestones for the project include:

{ Economic and Environmental Reports completed April 2013

{ Open or Base Year for expanded harbor - 2018

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whaT doeS ThiS meaN for The regioN?

Throughout the development of the North Florida Freight, Mobility, & Intermodal Framework Plan, the convergence of key ideas, themes and findings began to occur. Earlier in this report section, and presented additionally in subsequent sections are findings regarding the region’s infrastructure, markets and business climate. Additionally, the research and due diligence conducted as part of the study contained an indefinite amount of information and sets of numbers related to cargo flows, mileages of infrastructure, commodity forecasts, containers transferred, ship calls, etc – and the list can go on and on. The challenge is that in this industry the numbers are ever changing , and as such, development of plans and policies need to be focused on more than “the numbers”.

In fact, given the increased growth presented earlier in several markets and areas, it became clear that our region’s geography, extensive infrastructure, market access, and business climate all tell a story beyond the numbers!

North Florida is a cornerstone region for the State of Florida and also the United States. The Region’s abilities and capabilities offer to serve Florida and the Nation as a key GATEWAY for commerce, freight flows, logistics and intermodal activities.

gate•way /’gat,wa/

n.

1. Something that serves as an entrance or a

means of access....allows an entity to achieve

a desired goal.

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The following pages present the recommendations and action items for the North Florida Freight Logistics, & Intermodal Framework Plan. These recommendations and actions are presented for Infrastructure, Markets and Business Climate and are preceded with Guiding Principles for the Plan. Details regarding the recommendations are contained in the subsequent report sections with a brief summary presented here.

guidiNg PriNCiPleS for PlaNThe guiding principles for the plan represent an overarching tone and tenor to moving the needle for the North Florida Region. This Region IS A GATEWAY! It is the responsibility of the Region’s leaders to assume this role and begin to make decisions with the mission of serving beyond the region. W hile our rich infrastructure systems are clearly assets, as important is the Region’s proven record of coordination and collaboration. The North Florida TPO, FDOT, JAXPORT and other regional partners have established a level of collaboration unparalleled in Florida. With the speed of business and the ever changing freight and logistics industry, this asset cannot and should not be overlooked. As a Gateway region, it is important to recognize that the State’s 19 million citizens is a market within itself. As such, it is recommended that a ONE FLORIDA approach be taken in serving Florida and to coalesce around our state in order to better assess the national and state significance thresholds need to make investment decisions. A sound example is the Memorandum of Understanding (MOU) between the Greater Miami Chamber of Commerce and the JAX Chamber. This MOU states that these two regions will “…work together to enhance the economic well-being of both regions…” related to areas of transportation and logistics and specifically for expanded development of our ports and to foster development of freight corridors.

Gateway Role for State and Nation { This is a given based on geography and infrastructure

{ Leverage our existing niches at current channel depths

Coordination/Coll aboration a s an Asset { Unique North Florida TPO, FDOT, JAXPORT relationships

{ Integrate into business & public partners

One Florida Business Approach { JAX and Miami Chamber MOU

{ Include National/State Significance “metrics” for decisions

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reCommeNdaTioNS - iNfraSTruCTure

During the next 12-18 months, specific infrastructure improvements will be brought forward through FDOT 5-year project programming; JAXPORT’s strategic master plan, Port of Fernandina’s strategic master plan, as well as others. The following recommendations are presented to keep momentum in areas of concern and to set the stage for advancement. All three (3) intermodal rail yards in the region are working near capacity or record levels. It is important to recognize the importance of these yards and the direct relationship they have to the highway and local roadway system. Further emphasis and evaluation should be undertaken on assuring the “last mile” of access to the intermodal yards are kept in a priority position. The ongoing rail corridor study presents a potentially “game changing” opportunity to better connect the ICTF, Port of Fernandina and other facilities to rail mainlines. Lastly, as both ports update their respective master plans, the application of Green Ports and alternative fuels should be considered in the future.

Intermodal Yard Improve ments Focus { CSX, NS & FEC expansion plans

{ Truck access to yards or “last mile”

{ Co-locate manufacturing near yards

North Are a/JIA Corridor Future R ail Fe a sibilit y Study

{ Linkage to Intermodal Container Transfer Facility (ICTF)

{ Economic development concentration along route

{ Evaluate opportunities at JIA and Tradeport

Alternative Fuels & Green Ports { Develop policies and programs for freight trucking , logistics and

municipal fleets for alternative fuels

{ Incorporate “green” practices in Port Strategic Master Plans

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overview | 1–21

reCommeNdaTioNS – markeTS

Success breeds success… and also attracts competitors. It is important to recognize that attracting new markets is extremely important, but not at the expense of losing sight of existing markets and growth opportunities. It is necessary to leverage the strong existing markets and commodities such as automobiles and Caribbean/South American trading partners. The success of market and trading lanes expansion is evident with the TraPac terminal and Asian shipping lines calling on marine terminals. Attracting the Disney based imports is a first step. The challenge is to identif y the next 3 or more Asian container redirects to North Florida. Lastly, the ability to lever our expansive manufacturing and distribution center industries is made even more clear when reconciled with HB 599’s directive for Intermodal Logistics Centers, manufacturing and value added activities coupled to the freight and logistic sectors.

Protect E xisting M arkets & Developing Niches

{ Leverage the strength of “existing markets” (40’ channel)

{ Strategic Plan Priority for JAXPORT and Port of Fernandina

Asi an Containers R ec apture { Identif y next 3 Disney “redirects”

{ Set a goal for redirecting Florida’s 3.1 m TEU “leakage”

M anufacturing/Distribution Center E xpansion

{ Update 2005 Industrial Land Use Plan (COJ)

{ Develop a regional Intermodal Logistics Center (ILC), “inland port” & Distribution Center (DC) expansion plan

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overview | 1–22

reCommeNdaTioNS – BuSiNeSS ClimaTe

Due to the current state of North Florida’s infrastructure system, with its relatively high level of service and existing capacity, ongoing and future investments in our region’s infrastructure will potentially yield higher benefit-cost ratios when compared to other regions. The North Florida region will need to demonstrate the positive Return of Investment (ROI) from projects in our region and to demonstrate State and National Significance. Additional recommendations include: expanded role of the Logistics Advisory Group (LAG); support for other on-going regional initiatives including a business focused alliance; implementation of Innovate Northeast Florida; and strengthen industry education.

R eturn on Investment (ROI) Assessment for Northe a st Florida

{ ROI for Completed Infrastructure + Future Investments

{ Opportunity Costs related to “capacity in system”

Imple ment Northe a st Florida R ecommendations

R egional Transportation Initi atives { Regional Transportation Study Commission (RTSC) projects

inclusive of port, freight, and intermodal infrastructure

{ Develop regional transportation focused business alliance

{ Support FHWA’s Marine Highway designation

Enh anced Industry Educ ation Progra ms { UNF Transportation & Logistics Flagship Program

{ Focused Workforce Florida and International Training

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overview | 1–23

PrioriTieS for NorTh florida: NexT 12 moNThS

Position North Florida a s National , State and R egional Gateway

National Freight Net work & Strategic Pl an

{ Work with FDOT and partners to maximize North Florida’s network mileage and facilities on the National Freight Network

{ Demonstrate national significance of North Florida Region

Florida’s Freight Mobilit y and Trade Pl an { Provide leadership and high level of engagement in Plan

{ Conduct analysis and studies to demonstrate State significance of North Florida Region

Innovate Northe a st Florida Imple mentation { Complete activities for Advance Manufacturing , Logistics and

Physical Infrastructure core target industries and components

{ Advance implementation for Supply Chain Management/IT, Clean Fuels, and Distribution Centers target sub-clusters

CoNCluSioNIn light of the need for the region and its partners to assume the responsibility to be the GATEWAY to Florida and the Nation, it will take much more than coordination and consensus-building. Rather, this effort will require a tactical approach to collaboration which seeks to leverage our region’s geographic, infrastructure, and business-friendly competitive advantages to serve the Region, State and Nation.

Coordination is civil … coll aboration is tactic al

Innovate Northeast Florida

Northeast FloridaInnovate

Unique Core Competencies

InformationTechnology

LeanManufacturing

RegulatoryCompliance

Military

Target Industry Ecosystems

• Aviation• CleanFuels• Rail&PortLogistics• PowerStorage• PropulsionSystems

• TrackingDevice& SecuritySystems• DistributionCenters• SupplyChain Management&IT

Advanced Transportation

Financial Services

• FinancialServices Support• DataCenters• Insurance

• FinancialSoftware &IT• TradeFinancing• WholesaleBanking

• HumanHealthCare&Wellness• MedicalTechnologies• HealthIT• FoodSafety• AgriculturalSciences

• MarineSciences• Insurance• Administrative Services• ComplexRegulatoryCompliance

Health & Life Sciences

www.innovatenortheastflorida.com

Industry Cluster Focus

AircraftandAviation

Components

FinancialServicesSupport

HealthCareIT

SupplyChainManagement/IT

InnovateNortheastFloridauncoveredthreeindustryecosystemsthatdifferentiatetheregiononaninternationallevel.Inaddition,theregionoffersseveraluniquecompetenciesthatrunthroughoutallofthetargetindustries.TheindustryecosystemsandcorecompetenciessetthestageforNortheastFlorida’slong-termgrowth.Thefirstphaseofimplementationhasprioritizedfoursub-clusters.

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infrastructure | 2–1

intrODuctiOnNorth Florida plays an integral role in the nation and state of Florida’s transportation system, providing a gateway to reach overseas destinations; and connecting Florida to domestic markets. The region’s well-developed freight, logistics, and intermodal transportation system consists of several modal components, summarized in this “Infrastructure” section. North Florida’s transportation system includes highway, rail, marine, and air facilities, which all contribute to the economic vitality of the region. Careful planning of the region’s transportation infrastructure and freight related land uses is necessary to further position North Florida as a globally significant freight, logistics and intermodal hub.

2 | infrastructure

DRAFT NORTH FLORIDA FREIGHT, LOGISTICS AND INTERMODAL PLAN

BUSINESS

CLIMATE

INTRODUCTION Infrastructure is the backbone to the freight and logistics industry, supported heavily by a

favorable business climate, which attracts and provides opportunity for economic growth and vitality in the North Florida region. The North Florida region’s logistics industry is working hard to position itself for significant growth, driven by domestic growth and emergence as an international global hub. This moment in time provides a tremendous opportunity for the North Florida region to cultivate an environment enabling business leaders to help the region maintain and elevate its economic competitiveness, encouraging job creation and retention, through a favorable business climate. This section describes how North Florida’s business climate is affected by regional, state, national and global trends related to demographics; plans and policies; and economic opportunities.

CONDITIONS AND OPPORTUNITIES

SUMMARY AND RECOMMENDATIONS

• CONDITIONS AND OPPOrtunities

• ImprOvemeNT PriOrities

• SummAry AND reCOmmeNDATIONS

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cOnDitiOns anD OPPOrtunitiesThe region’s location at the intersection of major interstate and rail systems, along with the presence of two deepwater ports, help make the region attractive to do business. These facilities are critical competitive elements within the region.

Highway At the crossroads of three major interstates, Interstates 10, 95 and 295, with Interstate 75 just 18 miles west of the region, in addition to a network of major and minor arterial roadways, North Florida conveniently provides access to the rest of Florida and the nation.

North Florida major roadways

National Highway System routing

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R ailMost freight traveling by rail in and out of Florida must do so on North Florida’s rail infrastructure. Strengthening its role as a gateway, the region is at the junction of the rail lines and intermodal rail terminals of three key rail carriers: CSX and Norfolk Southern (NS), both Class I railroads, and Florida East Coast Railway (FEC)), a Class II regional railroad; along with short line railroads.

North Florida major rail Lines

DRAFT NORTH FLORIDA FREIGHT, LOGISTICS AND INTERMODAL FRAMEWORK PLAN

INFRASTRUCTURE

Rail – Most freight traveling by rail in and out of Florida must do so on North Florida’s rail infrastructure. Strengthening its role as a gateway, the region is at the junction of the rail lines and intermodal rail terminals of three key rail carriers: CSX and Norfolk Southern (NS), both Class I railroads, and Florida East Coast Railway (FEC)), a Class II regional railroad; along with short line railroads.

National Rail Network and Primary Rail Corridors National rail Network and primary rail

corridors

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M arine TerminalsNorth Florida’s deepwater seaports, gateways to reach overseas destinations, consist of The Port of Jacksonville, the major port within the region; and the Port of Fernandina, a niche port located to the north in Nassau County. Carrying container, break bulk and bulk commodities, the Port of Jacksonville has the opportunity to leverage the benefits of over 20 marine terminals, including Jacksonville Port Authority ( JAXPORT), military and several private terminals. JAXPORT terminals, Blount Island, Dames Point and Talleyrand, total over 1,500 acres. The TraPac Container Terminal at Dames Point is JAXPORT’s major container terminal, consisting of 158 acres and serving as Mitsui O.S.K . Lines’, Ltd. (MOL) East Coast hub. Detailed marine terminal graphics are contained in the appendix .

DRAFT NORTH FLORIDA FREIGHT, LOGISTICS AND INTERMODAL FRAMEWORK PLAN

INFRASTRUCTURE

Marine Terminals – North Florida’s deepwater seaports, gateways to reach overseas destinations, consist of The Port of Jacksonville, the major port within the region; and the Port of Fernandina, a niche port located to the north in Nassau County. Carrying container, break bulk and bulk commodities, the Port of Jacksonville has the opportunity to leverage the benefits of over 20 marine terminals, including Jacksonville Port Authority (JAXPORT), military and several private terminals. JAXPORT terminals, Blount Island, Dames Point and Talleyrand, total over 1,500 acres. The TraPac Container Terminal at Dames Point is JAXPORT’s major container terminal, consisting of 158 acres and serving as Mitsui O.S.K. Lines’, Ltd. (MOL) East Coast hub. Detailed seaport terminal graphics are contained in the appendix.

JAXPORT

Port of Fernandina

port of Jacksonville marine Terminals

DRAFT NORTH FLORIDA FREIGHT, LOGISTICS AND INTERMODAL FRAMEWORK PLAN

INFRASTRUCTURE

Marine Terminals – North Florida’s deepwater seaports, gateways to reach overseas destinations, consist of The Port of Jacksonville, the major port within the region; and the Port of Fernandina, a niche port located to the north in Nassau County. Carrying container, break bulk and bulk commodities, the Port of Jacksonville has the opportunity to leverage the benefits of over 20 marine terminals, including Jacksonville Port Authority (JAXPORT), military and several private terminals. JAXPORT terminals, Blount Island, Dames Point and Talleyrand, total over 1,500 acres. The TraPac Container Terminal at Dames Point is JAXPORT’s major container terminal, consisting of 158 acres and serving as Mitsui O.S.K. Lines’, Ltd. (MOL) East Coast hub. Detailed seaport terminal graphics are contained in the appendix.

JAXPORT

Port of Fernandina

DRAFT NORTH FLORIDA FREIGHT, LOGISTICS AND INTERMODAL FRAMEWORK PLAN

INFRASTRUCTURE

Marine Terminals – North Florida’s deepwater seaports, gateways to reach overseas destinations, consist of The Port of Jacksonville, the major port within the region; and the Port of Fernandina, a niche port located to the north in Nassau County. Carrying container, break bulk and bulk commodities, the Port of Jacksonville has the opportunity to leverage the benefits of over 20 marine terminals, including Jacksonville Port Authority (JAXPORT), military and several private terminals. JAXPORT terminals, Blount Island, Dames Point and Talleyrand, total over 1,500 acres. The TraPac Container Terminal at Dames Point is JAXPORT’s major container terminal, consisting of 158 acres and serving as Mitsui O.S.K. Lines’, Ltd. (MOL) East Coast hub. Detailed seaport terminal graphics are contained in the appendix.

JAXPORT

Port of Fernandina

JAXpOrT-Talleyrand Terminal

Port of fernindina

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Air Freight Although a smaller market relative to tonnage handled by other modes of transportation, aviation services are also part of the region’s freight movement. Several passenger airlines and dedicated all-cargo airlines provide air cargo service at the Jacksonville International Airport ( JIA). It is anticipated that Cecil Airport will help support economic development within the region, serving both aviation and aerospace dependent industries. The airport is adjacent to the Cecil Commerce Center and recently was designated a spaceport and “space territory” by the state of Florida (HB59). As a result, the newly named “Cecil Field Spaceport” can be included in Space Florida’s Spaceport Master Plan, which includes recommendations for infrastructure projects. FDOT is also planning to add the spaceport to Florida’s Strategic Intermodal System (SIS).

Florida’s Strategic Intermodal Syste m (SIS)North Florida’s strong presence of SIS facilities helps the region receive state funding for freight infrastructure improvements. Florida’s SIS was established to efficiently serve Florida’s mobility needs and to help Florida become a worldwide economic leader, enhance economic prosperity and competitiveness, enrich quality of life and reflect responsible environmental stewardship. The SIS is an integrated transportation network made up of major facilities of interregional and statewide significance from all modes of transportation, throughout the state of Florida. SIS facilities are high-priority facilities carrying significant amounts of truck, rail, waterborne and air freight and/or passengers. North Florida SIS facilities for all modes are depicted in the Appendix .

DRAFT NORTH FLORIDA FREIGHT, LOGISTICS AND INTERMODAL FRAMEWORK PLAN

INFRASTRUCTURE

Air Freight – Although a smaller market relative to tonnage handled by other modes of transportation, aviation services are also part of the region’s freight movement. Several passenger airlines and dedicated all-cargo airlines provide air cargo service at the Jacksonville International Airport (JIA). It is anticipated that Cecil Airport will help support economic development within the region, serving both aviation and aerospace dependent industries. The airport is adjacent to the Cecil Commerce Center and recently was designated a spaceport and “space territory” by the state of Florida (HB59). As a result, the newly named “Cecil Field Spaceport” can be included in Space Florida’s Spaceport Master Plan, which includes recommendations for infrastructure projects. FDOT is also planning to add the spaceport to Florida’s Strategic Intermodal System (SIS).

Florida’s Strategic Intermodal System (SIS) – North Florida’s strong presence of SIS facilities helps the region receive state funding for freight infrastructure improvements. Florida’s SIS was established to efficiently serve Florida’s mobility needs and to help Florida become a worldwide economic leader, enhance economic prosperity and competitiveness, enrich quality of life and reflect responsible environmental stewardship. The SIS is an integrated transportation network made up of major facilities of interregional and statewide significance from all modes of transportation, throughout the state of Florida. SIS facilities are high-priority facilities carrying significant amounts of truck, rail, waterborne and air freight and/or passengers. North Florida SIS facilities for all modes are depicted in the Appendix.

Truck Volumes on Florida SIS Roadways

Air Freight

DRAFT NORTH FLORIDA FREIGHT, LOGISTICS AND INTERMODAL FRAMEWORK PLAN

INFRASTRUCTURE

Air Freight – Although a smaller market relative to tonnage handled by other modes of transportation, aviation services are also part of the region’s freight movement. Several passenger airlines and dedicated all-cargo airlines provide air cargo service at the Jacksonville International Airport (JIA). It is anticipated that Cecil Airport will help support economic development within the region, serving both aviation and aerospace dependent industries. The airport is adjacent to the Cecil Commerce Center and recently was designated a spaceport and “space territory” by the state of Florida (HB59). As a result, the newly named “Cecil Field Spaceport” can be included in Space Florida’s Spaceport Master Plan, which includes recommendations for infrastructure projects. FDOT is also planning to add the spaceport to Florida’s Strategic Intermodal System (SIS).

Florida’s Strategic Intermodal System (SIS) – North Florida’s strong presence of SIS facilities helps the region receive state funding for freight infrastructure improvements. Florida’s SIS was established to efficiently serve Florida’s mobility needs and to help Florida become a worldwide economic leader, enhance economic prosperity and competitiveness, enrich quality of life and reflect responsible environmental stewardship. The SIS is an integrated transportation network made up of major facilities of interregional and statewide significance from all modes of transportation, throughout the state of Florida. SIS facilities are high-priority facilities carrying significant amounts of truck, rail, waterborne and air freight and/or passengers. North Florida SIS facilities for all modes are depicted in the Appendix.

Truck Volumes on Florida SIS Roadways

Air Freight

air freight

Truck volumes on Florida SIS roadways

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Industri al , Warehousing and Distribution Centers

In addition to the transportation infrastructure, North Florida has 100 million square feet of industrial building space, consisting of warehouse/distribution, manufacturing , R&D/Flex and other industrial uses. Often located within industrial parks, industrial facilities help facilitate the processing and movement of goods from origins to destinations. North Florida has sizable industrial parks/sites, such as Cecil Commerce Center, a 1,500+ acre certified mega site, one of only 15 in the U.S. Other industrial parks/sites are under development, such as the Woodstock mega site in Baker County and the Crawford Diamond mega site in Nassau County.

Winn Dixie Baldwin Distribution Center: 1.2

million square feet of warehouse space

industrial sites

DRAFT NORTH FLORIDA FREIGHT, LOGISTICS AND INTERMODAL FRAMEWORK PLAN

INFRASTRUCTURE

Industrial Sites and Distribution Centers In addition to the transportation infrastructure, North Florida has over 98 million square feet of industrial building space, consisting of warehouse/distribution, manufacturing, R&D/Flex and other industrial uses. Often located within industrial parks, industrial facilities help facilitate the processing and movement of goods from origins to destinations. North Florida has sizable industrial parks/sites, such as Cecil Commerce Center, a 1,500+ acre certified mega site, one of only 15 in the U.S. Other industrial parks/sites are under development, such as the Woodstock mega site in Baker County and the Crawford Diamond mega site in Nassau County.

Winn Dixie Baldwin Distribution Center: 1.2 million square feet of warehouse space

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COmpANy LOCATION yeAr OpeN SQ. FeeTSanmar West Jacksonville 2012 642,000

Bedrosians Southeast Jacksonville 2012 327,000

Samsung Westside Industrial park 2012 140,000

Gallo Wines Southeast Jacksonville 2011 213,000

saft Cecil Commerce Center 2011 200,000

Global Tissue Group Southeast Jacksonville 2011 180,000

vantem Composite Tech. Southeast Jacksonville 2011 148,000

Football Fanatics Jacksonville Westside 2010 553,000

interline Westside Industrial park 2010 275,000

Falken Tire Westside Industrial park 2010 250,000

mercedes Benz International Tradeport 2009 419,000

Bridgestone firestone Cecil Commerce Center 2008 1,000,000

Coach Leather Jacksonville Intl. Tradeport 2008 817,000

Samsonite Imeson Industrial park 2008 817,000

Sears Logistics Northpoint Industrial park 2008 812,000

unilever Westlake Industrial park 2008 772,000

Dr. pepper/Snapple Westpoint Trade Center 2008 601,000

Georgia Pacific Westlake Industrial park 2008 546,000

volkswagen perimeter West 2008 260,000

michaels Arts & Crafts West Jacksonville 2007 300,000

BmW Westside Industrial park 2007 213,000

Kraft foods Westside Industrial park 2007 183,000

pSS medical Westside Industrial park 2007 168,000

Johnstone Supply Westside Industrial park 2007 120,000

TOTAL 9,956,000

Industrial/Warehousing/Distribution Centers (2007-2012)

The opening of the TraPac Container Terminal in 2009, helped encourage additional industrial development within the region. Over the last 5 years, approximately 9.9 million square feet of industrial land uses opened, with at least 1.1 million of that opening during the past year. In 2012, SanMar, Bedrosians, and Samsung opened 642,000, 327,000 and 140,000 square foot facilities in the west and southeast areas of Jacksonville.

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Strong , coordinated support for port-related distribution centers and warehousing is critical to the success of seaports. Like other types of industrial sites, distribution centers are also often located within industrial parks, and help facilitate the movement of goods to destinations. North Florida distribution centers also tend to be located near interstates, seaports and/or intermodal rail terminals.

Distribution Centers

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ImprOvemeNT prIOrITIeSFreight, logistics and intermodal facilities are vital to North Florida’s economy. Anticipated growth in the trade and logistics sector will place additional demands on the transportation system and will require additional infrastructure improvements. Careful planning of the region’s infrastructure is necessary to further position North Florida as a globally significant freight, logistics and intermodal gateway.

Stakeholder Pl ans, Progra ms and StudiesState, regional and local plans, programs and studies identif y transportation infrastructure needs for North Florida. Many of these projects are directly related to freight movement. They are either on the SIS, emerging SIS, or planned by FDOT to be on the SIS (as in the case of the First Coast Outer Beltway and SR 9B). The projects may also connect an SIS corridor with an SIS hub; help facilitate travel between and near SIS hubs; near industrial areas; or serve as potential relievers to SIS corridors.

The freight infrastructure improvement priorities highlighted for this framework plan draw from multiple stakeholder plans and programs.

{ Florida Department of Transportation’s (FDOT) Five Year Work Program, Fiscal Year 2013-2017

{ FDOT SIS 1st Five Year Plan, 2013-2017

{ FDOT SIS 2nd Five Year, 2017-2021

{ FDOT SIS Cost Feasible Plan, 2020-2035

{ FDOT SIS Unfunded Needs Plan, 2040 (October 2011)

{ Florida Rail System Plan: Investment Element (December 2010)

{ Florida 2012 Priority Seaport Projects, Florida Ports Council

{ Florida Seaport System Plan, FDOT, December 2010

{ North Florida TPO 2035 Adopted Cost Feasible Plan (Long Range Transportation Plan – LRTP)

{ North Florida TPO’s 2035 Adopted Needs Plan (LRTP)

{ JAXPORT – Capital Project Summary, FY 2013 (5 Year Capital Plan)

{ Port of Fernandina

regional Transportation Study Commission

(rTSC) Corridors

The identification of freight related projects

within stakeholder plans was completed in

coordination with rTSC efforts to identify

regional corridors and roadways. As a result

of this coordination of plan processes,

freight improvement priorities align with

the region’s corridor framework and may be

eligible for potential future funding of rTSC

improvement needs.

DRAFT NORTH FLORIDA FREIGHT, LOGISTICS AND INTERMODAL FRAMEWORK PLAN

INFRASTRUCTURE

RTSC Corridors The identification of freight related projects within stakeholder plans was completed in coordination with RTSC efforts to identify regional corridors and roadways. As a result of this coordination of plan processes, freight improvement priorities align with the region’s corridor framework and may be eligible for potential future funding of RTSC improvement needs.

IMPROVEMENT PRIORITIES Freight, logistics and intermodal facilities are vital to North Florida’s economy. Anticipated growth in the trade and logistics sector will place additional demands on the transportation system and will require additional infrastructure improvements. Careful planning of the region’s infrastructure is necessary to further position North Florida as a globally significant freight, logistics and intermodal hub.

Stakeholder Plans, Programs and Studies State, regional and local plans, programs and studies identify transportation infrastructure needs for North Florida. Many of these projects are directly related to freight movement. They are either on the SIS, emerging SIS, or planned by FDOT to be on the SIS (as in the case of the First Coast Outer Beltway and SR 9B). The projects may also connect an SIS corridor with an SIS hub; help facilitate travel between and near SIS hubs; near industrial areas; or serve as potential relievers to SIS corridors.

The freight infrastructure improvement priorities identified for this framework plan draw from multiple stakeholder plans and programs.

Florida Department of Transportation’s (FDOT) Five Year Work Program, Fiscal Year 2012-2016

FDOT SIS 1st Five Year Plan, 2012-2016 FDOT SIS 2nd Five Year, 2017-2021 FDOT SIS Cost Feasible Plan, 2020-2035 FDOT SIS Unfunded Needs Plan, 2040 (October 2011) Florida Rail System Plan: Investment Element (December 2010) Florida 2012 Priority Seaport Projects, Florida Ports Council Florida Seaport System Plan, FDOT, December 2010 North Florida TPO 2035 Adopted Cost Feasible Plan (Long Range

Transportation Plan – LRTP) North Florida TPO’s 2035 Adopted Needs Plan (LRTP) JAXPORT – Capital Project Summary, FY 2013 (5 Year Capital Plan) Port of Fernandina

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HighwayFreight related roadway and interchange improvements occur in the short-, mid-, or long-term timeframes, based on their completion years (refer to appendix). These projects add capacity to the highway system and benefit freight facilities, such as seaport terminals within the Ports of Jacksonville and Fernandina; intermodal rail terminals or JIA . In the short-term (2012 – 2020), freight related roadway and interchange projects occur primarily along the region’s heavily traveled interstates and loop roadways: I-295, SR9B, US 301, SR200, I-10 and the planned First Coast Outer Beltway. This trend is continued in the mid-term (2020 – 2030), with the addition of projects along I-95 and other roadways. By the long-term (2030 – 2040), projects are more widespread across the region; representing currently unfunded needs; and including more non interstate roadways such as CR210, SR16 and SR100.

R ail Rail freight improvements also benefit the region. A noteworthy short term rail improvement need is the JAXPORT Intermodal Container Transfer Facility (ICTF).

The proposed ICTF would transport containerized cargo efficiently from ships to rail cars, increasing the port’s ability to move cargo quickly, reducing truck miles and decreasing exhaust emissions and highway maintenance costs. The project is expected to create employment, attract new business to the region, and increase the region’s ability to compete with other regions/ports. JAXPORT, with assistance from the State of Florida, the City of Jacksonville and CSX, secured a $10 million U.S. Department of Transportation TIGER III grant toward construction of the ICTF at JAXPORT’s Dames Point Terminal. Additionally, FDOT contributed $20 million. These are examples of regional partnering to secure infrastructure funding.

§̈¦95

TMT

CSXIntermodalTerminal &Duval Yard

NSSimson Yard/

IntermodalTerminal

FECIntermodalTerminal

StJ

o hn'

sR

iver

§̈¦95

§̈¦95

§̈¦10

§̈¦295

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Intermodal Yards Improve ments FocusIn the short and near term, the intermodal rail yards represent key investment opportunities. Intermodal rail yards are essentially the places of modal shifts between trucks and rail. All three intermodal yards, CSX, Norfolk Southern and Florida East Coast are currently operating at or near capacity. Each has expansion plans that would double the number of lifts or container transfers. Improving truck access to the yards is critical for current and future plans as the “last mile” of accessibility can be critical to yard operations.

Future R ail Corridors StudyNorth Florida transportation stakeholders will continue evaluating long term rail connection options to improve rail in the region, and to improve rail connections to the Port of Jacksonville. More efficient rail connections through the region and to the ICTF will be critical as rail traffic increases. One corridor option, called the North Area/JIA Option, is located near JIA, north of existing east/west rail routes. This corridor offers potential opportunities with its proximity to the Airport. Potential benefits include reducing community impacts associated with existing rail routes and increasing rail operational efficiencies.

The State and National Fra meworkNorth Florida’s rail improvement needs and concerns must align with state and national rail plans and trends. At the national level, it is expected that demographic, economic and technological changes will increase demand for both freight and passenger rail; increasing needs for more rail capacity, intermodal service and investments in shorter haul markets located in the eastern portion of the U.S.

Furthermore, it will be critical that North Florida freight/intermodal rail lines efficiently link with national rail corridors such as the CSX National Gateway and the NS Crescent Corridor. Capacity upgrades are also a high priority for the State of Florida, and improvements to rail freight capacity, efficiency and train speeds along the CSX “S” Line may have a significant impact on volumes traversing North Florida’s communities such as Baldwin, Jacksonville and Callahan.

North Area/JIA Corridor

CSX “S” and “A” Lines

1

Central Florida commuter rail transaction (SunRail)

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M arine TerminalsJAXPORT has a 5 year capital plan of project needs totaling over $1.2 billion over a timeframe from fiscal year 2012/13 – 2016/17. There are several project needs across JAXPORT’s terminals of Blount Island (over $157M), Dames Point (over $258M) and Talleyrand (over $63M). Notable capacity projects listed in the work plan include:

{ Mile Point improvements

{ Rehabilitation of Blount Island and Talleyrand concrete berth structures

{ ICTF at Dames Point

{ Blount Island railroad rehabilitation

{ Dredge material management area development

{ Crane replacements

{ Container terminal design on Dames Point

{ Harbor deepening construction

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Mile Point and Deepening Pl ans/Status The US Army Corps of Engineers (USACE), in partnership with JAXPORT, recently studied the Mile Point area of Jacksonville’s harbor; and continues to study deepening of Jacksonville’s main shipping channel.

{ Mile Point – Mile Point improvements have both economic and environmental benefits to the North Florida area. Mile Point is a harbor project expected to improve cargo vessels’ ability to navigate through the Jacksonville harbor. At the point where the St. Johns River meets the Intracoastal Waterway (Mile Point), strong crosscurrents prevent large ships from traveling in and out of the harbor nearly two-thirds of the day. This problem adversely impacts JAXPORT customers as container ships’ ability to navigate the channel is limited to two four-hour windows daily. Since Mile Point’s crosscurrents more negatively impact heavier ships, these ships often limit the amount of cargo they carry. JAXPORT has budgeted $40 million for the Mile Point project and anticipates completion by the end of 2016/17.

{ Harbor Deepening - An economic impact, environmental and engineering study is being conducted to evaluate deepening of the federal channel. Many stakeholders believe a deeper channel is needed to accommodate larger container ships that are fully loaded, thereby meeting the future needs of port customers. Deepening Jacksonville’s Harbor is expected to keep the port viable and competitive with other ports, particularly with the completion of an expanded Panama Canal in 2015. The port’s ultimate goal is to complete deepening of the harbor to 50 feet by FY 2018.

Additional JAXPORT concerns listed in the Florida Seaport System Plan include: lack of availability of land for expansion and the potential for additional gate congestion, truck/rail access needs and local congestion, as the Port grows.

What you Told us

In an on-line survey of stakeholders,

mile point improvements ranked as most

important, out of the below improvements:

• mile point improvements to reduce delays

to vessels

• port of Jacksonville harbor deepening to

accommodate larger vessels

• Intermodal container transfer facility (ICTF)

at/near JAXpOrT’s Dames point Terminal

• Highway/Freeway expansion

DRAFT NORTH FLORIDA FREIGHT, LOGISTICS AND INTERMODAL FRAMEWORK PLAN

INFRASTRUCTURE

What You Told Us

In an on-line survey of stakeholders, Mile Point improvements ranked as most important, out of the below improvements:

Mile Point improvements to reduce delays to vessels

Port of Jacksonville harbor deepening to accommodate larger vessels

Intermodal container transfer facility (ICTF) at/near JAXPORT’s Dames Point Terminal

Highway/Freeway Expansion

Mile Point and Deepening Plans/Status The US Army Corps of Engineers (USACE), in partnership with JAXPORT, recently studied the Mile Point area of Jacksonville’s harbor; and continues to study deepening of Jacksonville’s main shipping channel.

Mile Point – Mile Point improvements have both economic and environmental benefits to the North Florida area. Mile Point is a harbor project expected to improve cargo vessels’ ability to navigate through the Jacksonville harbor. At the point where the St. Johns River meets the Intracoastal Waterway (Mile Point), strong crosscurrents prevent large ships from traveling in and out of the harbor nearly two-thirds of the day. This problem adversely impacts JAXPORT customers as container ships’ ability to navigate the channel is limited to two four-hour windows daily. Since Mile Point’s crosscurrents more negatively impact heavier ships, these ships often limit the amount of cargo they carry. JAXPORT has budgeted $40 million for the Mile Point project and anticipates completion by the end of _____.

Harbor Deepening - An economic impact, environmental and engineering study is being conducted to evaluate deepening of the federal channel. Many stakeholders believe a deeper channel is needed to accommodate larger container ships that are fully loaded, thereby meeting the future needs of port customers. Deepening Jacksonville’s Harbor is expected to keep the port viable and competitive with other ports, particularly with the completion of an expanded Panama Canal in 2015. A 50-foot harbor deepening project of Jacksonville’s 21-mile main shipping channel (from the Atlantic Ocean to the Talleyrand Marine Terminal) is expected to cost approximately $600 million. The port’s ultimate goal is to complete deepening of the harbor to 50 feet by FY 2018. The planned opening of the $300 million Hanjin Shipping Co.LTD Terminal at Dames Point could be delayed because the St. Johns River channel is not deep enough for larger ships.

Additional JAXPORT concerns listed in the Florida Seaport System Plan include: lack of availability of land for expansion and the potential for additional gate congestion, truck/rail access needs and local congestion, as the Port grows.

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Port of FernandinaThe Port of Fernandina is located along the Amelia River about 2.2 miles from the mouth of the Atlantic Ocean, and operated by Nassau Terminals, LLC. Recent accomplishments at the Port of Fernandina include the addition of an off-port distribution center with an adjacent container depot. These are located on US 17 less than two miles from I-95 and 13 miles from the port.

Major capital improvement needs at the Port of Fernandina include :

{ Adding a new berth in the long term ($12M)

{ Off port warehousing and container depot ($15M)

The Port of Fernandina has the waterside land and Army Corps of Engineers certification to proceed with developing a 3rd berth. Since the port is currently land locked, the new berth would have no space for storage. Development of major storage or other support uses would have to be accomplished off-port.

Air FreightAs the local population grows and the economic base prospers, air cargo and general aviation activity at JIA are anticipated to increase, according to the JIA Master Plan. The volume of cargo, including freight and mail, handled at the JIA is expected to increase over the planning period (thru 2027). JIA needs to remain poised and capable of providing additional facilities if future demand warrants the need. Additionally, the master plan states that the viable and economic development of air cargo facilities at Cecil Airport will also influence the decision of air cargo companies to operate at JIA .

Industri al Sites and Distribution CentersSources indicate that North Florida is beginning to show signs of a recovering economy, as unemployment rates decrease and help to raise consumer confidence. As the economy grows, and Port business increases, demand for industrial space and distribution centers will likely increase over time.

1Florida’s 2012 Priority Seaport Projects, Florida Ports Council

DRAFT NORTH FLORIDA FREIGHT, LOGISTICS AND INTERMODAL FRAMEWORK PLAN

INFRASTRUCTURE

Port of Fernandina - The Port of Fernandina is located along the Amelia River about 2.2 miles from the mouth of the Atlantic Ocean, and operated by Nassau Terminals, LLC. Recent accomplishments at the Port of Fernandina include the addition of an off-port distribution center with an adjacent container depot. These are located on US 17 less than two miles from I-95 and 13 miles from the port.

Major capital improvement needs at the Port of Fernandina include1:

Adding a new berth in the long term ($12M); Off port warehousing and container depot ($15M).

The Port of Fernandina has the waterside land and Army Corps of Engineers certification to proceed with developing a 3rd berth. Since the port is currently land locked, the new berth would have no space for storage. Development of major storage or other support uses would have to be accomplished off-port.

Air Freight –As the local population grows and the economic base prospers, air cargo and general aviation activity at JIA are anticipated to increase, according to the JIA Master Plan. The volume of cargo, including freight and mail, handled at the JIA is expected to increase over the planning period (thru 2027). JIA needs to remain poised and capable of providing additional facilities if future demand warrants the need. Additionally, the master plan states that the viable and economic development of air cargo facilities at Cecil Airport will also influence the decision of air cargo companies to operate at JIA.

Industrial Sites and Distribution Centers – Sources indicate that North Florida is beginning to show signs of a recovering economy, as unemployment rates decrease and help to raise consumer confidence. As the economy grows, and Port business increases, demand for industrial space and distribution centers will likely increase over time.

1 Florida’s 2012 Priority Seaport Projects, Florida Ports Council

Port of Fernandina

Air Cargo at JIA

Tradeport/Coach Leather Facility neat JIA

DRAFT NORTH FLORIDA FREIGHT, LOGISTICS AND INTERMODAL FRAMEWORK PLAN

INFRASTRUCTURE

Port of Fernandina - The Port of Fernandina is located along the Amelia River about 2.2 miles from the mouth of the Atlantic Ocean, and operated by Nassau Terminals, LLC. Recent accomplishments at the Port of Fernandina include the addition of an off-port distribution center with an adjacent container depot. These are located on US 17 less than two miles from I-95 and 13 miles from the port.

Major capital improvement needs at the Port of Fernandina include1:

Adding a new berth in the long term ($12M); Off port warehousing and container depot ($15M).

The Port of Fernandina has the waterside land and Army Corps of Engineers certification to proceed with developing a 3rd berth. Since the port is currently land locked, the new berth would have no space for storage. Development of major storage or other support uses would have to be accomplished off-port.

Air Freight –As the local population grows and the economic base prospers, air cargo and general aviation activity at JIA are anticipated to increase, according to the JIA Master Plan. The volume of cargo, including freight and mail, handled at the JIA is expected to increase over the planning period (thru 2027). JIA needs to remain poised and capable of providing additional facilities if future demand warrants the need. Additionally, the master plan states that the viable and economic development of air cargo facilities at Cecil Airport will also influence the decision of air cargo companies to operate at JIA.

Industrial Sites and Distribution Centers – Sources indicate that North Florida is beginning to show signs of a recovering economy, as unemployment rates decrease and help to raise consumer confidence. As the economy grows, and Port business increases, demand for industrial space and distribution centers will likely increase over time.

1 Florida’s 2012 Priority Seaport Projects, Florida Ports Council

Port of Fernandina

Air Cargo at JIA

Tradeport/Coach Leather Facility neat JIA

Port of fernandina

Tradeport/Coach Leather Facility neat JIA

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SummAry AND reCOmmeNDATIONSSummaryInfrastructure improvements on the region’s highway, railways, and marine systems should be viewed as ongoing initiatives. North Florida’s infrastructure has undergone significant upgrades over the past 10-15 years. In fact, our systems are operating at high levels of service and in most cases maintain excess capacity available for future growth.

The following focus areas are recommended:

Intermodal R ail Yards and Connectivit y be-t ween Modes

Improve roadway and rail connections with major freight facilities; and enhance the ability for freight to move between transportation modes and throughout the region. In addition to improved connectivity, roadway and rail projects help decrease congestion and improve safety. Strategic programmed regional projects/improvements that directly improve fright movement are listed below:

{ Modif y SR 9A/Heckscher Dr. Interchange (New Berlin Rd Access)

{ Modif y MLK Jr. Pkwy (Alt US 1) at 21st St Interchange

{ Widen SR 9A between the Dames Point Terminal and I-95

{ Widen SR200/A1A, east of I-95 to CR 107

In addition to the above projects, it is recommended that surface transportation improvements at and near the CSX, Norfolk Southern and Florida East Coast intermodal container yards be prioritized for the near term planning horizon.

Complete the North Are a/JIA CorridorFuture Rail Feasibility Study to ensure the highest level of rail connectivity for existing marine terminals in Duval and Nassau Counties in addition to the future ICTF. This project presents the opportunity to connect multiple modes including the aviation assets at JIA and promote new industrial activity along the future rail line.

DRAFT NORTH FLORIDA FREIGHT, LOGISTICS AND INTERMODAL FRAMEWORK PLAN

INFRASTRUCTURE

SUMMARY AND RECOMMENDATIONS

Summary Specific infrastructure priorities for the region include:

Inland Connections and Connectivity between Modes – Improve roadway and rail connections with major freight facilities; and enhance the ability for freight to move between transportation modes and throughout the region. In addition to improved connectivity, roadway and rail projects help decrease congestion and improve safety. Examples of existing regional priorities are listed below.

o Modify SR 9A/Heckscher Dr. Interchange o Modify MLK Jr. Pkwy (Alt US 1) at 21st St Interchange o Widen SR 9A between the Dames Point Terminal and I-95 o Widen SR200/A1A, east of I-95 to CR 107 o Intermodal container transfer facility (ICTF) at Dames Point

Mile Point Navigational Repairs – Eliminate existing crosscurrents at the St. Johns River and the Intracoastal Waterway, which delay ships traveling to and from the Port of Jacksonville. Reduction in vessel delays mean transportation cost savings and additional economic benefits for the region.

Port Terminal Improvements and Modernization - Rehabilitate wharf structures and replace cranes at JAXPORT’s Terminals to increase port terminal capacity, accept heavier cargos over the berths and accommodate on-dock rail. These improvements will help increase the Port’s ability to attract additional business.

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DRAFT NORTH FLORIDA FREIGHT, LOGISTICS AND INTERMODAL FRAMEWORK PLAN

INFRASTRUCTURE

Recommendations In order to increase the region’s role in the global economy, the region will require a competitive freight, logistics and intermodal transportation system. From an infrastructure perspective, this will require that the region’s stakeholders:

Continue identifying and solidifying the region’s freight, logistics and intermodal infrastructure needs, and opportunities to support a competitive freight transportation system

Promote excellent transportation mobility along the region’s corridors, with efficient intermodal connections

Develop and implement regional systems to monitor, evaluate and improve performance of North Florida’s freight and logistics facilities. Examples include asset management, intelligent transportation, cargo tracking and demand management systems. These types of systems integrate technology to promote cost effective and efficient; reliable, safe and secure; and environmentally friendly ways to maximize assets and improve freight movement

Support modernized container terminals Support a channel without navigational constraints Coordinate with state and national stakeholders to identify and plan

for marine highway corridors Establish a balance between additional freight corridor/facility

capacity needs, and North Florida’s livability and quality of life goals Optimize land use Encourage, plan for and/or preserve land to support regional

economic development goals, such as the expansion of port terminals, distribution and warehouse facilities and/or transportation corridors. This includes careful planning for the preservation of rights of way for long term, future use

Continue partnerships and coordination with/between both public and private stakeholders to identify and understand the region’s freight, logistics and intermodal needs, planning and funding processes, and operational issues

Leverage relationships with federal and state government representatives, to better position North Florida for future federal funding opportunities

Utilize innovative ways to fund infrastructure improvements within North Florida, including public-private partnerships and tax increment financing districts

Port Terminal Improve ments and Moderniz ation

Terminal operators and their respective master plans call for specific improvements. For example, rehabilitating wharf structures and replacing cranes at JAXPORT’s terminals to increase port terminal capacity, accept heavier cargos over the berths and accommodate on-dock rail. The TraPac terminal on Dames Point is an example of a modernized marine terminal with a high level of technolog y application.

JAXPORT and the Port of Fernandina are both initiating strategic master plan updates for their facilities/properties. During these updates, it is recommended that both entities evaluate the following:

{ Green Port applications to include alternative fuels and other sustainability efforts for vertical and horizontal development

{ Advance Transportation and Technolog y applications such as clean fuels, power systems, tracking devices and security systems and supply chain management & information technologies

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INtrODUCtIONUnderstanding the relative characteristics of freight and goods traveling to, from, within and through the region is important to the development of an effective freight transportation system. International maritime trade to and from the US has continually changed over the last 20 years. The changes include tonnage growth, market shifts and infrastructure investment. As the nation prepares to add about 130 million additional Americans by the year 2050 (America2050.org), the challenges of meeting infrastructure demand, competing in the global economy, and addressing major environmental issues are becoming increasingly significant. Recognizing potential implications from global and national trends, the state of Florida recently completed the Florida Trade and Logistics Study which identifies trade flows and recommends a comprehensive trade initiative for Florida. Freight, Logistics and Intermodal needs for North Florida should fit within the State’s transportation planning efforts, such as the Florida Trade and Logistics Study.

3 | markets

DRAFT NORTH FLORIDA FREIGHT, LOGISTICS AND INTERMODAL PLAN

BUSINESS

CLIMATE

INTRODUCTION Infrastructure is the backbone to the freight and logistics industry, supported heavily by a

favorable business climate, which attracts and provides opportunity for economic growth and vitality in the North Florida region. The North Florida region’s logistics industry is working hard to position itself for significant growth, driven by domestic growth and emergence as an international global hub. This moment in time provides a tremendous opportunity for the North Florida region to cultivate an environment enabling business leaders to help the region maintain and elevate its economic competitiveness, encouraging job creation and retention, through a favorable business climate. This section describes how North Florida’s business climate is affected by regional, state, national and global trends related to demographics; plans and policies; and economic opportunities.

CONDITIONS AND OPPORTUNITIES

SUMMARY AND RECOMMENDATIONS

• CONDITIONS AND OPPOrtUNItIes

• FUTURE FREIGHT LeVeLs

• SUmmARy AND reCOmmeNDatIONs

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CONDITIONS AND OPPORTUNITIES

Surface TransportationOne hundred and fifty-seven (157) million tons of freight move into, out of and through North Florida by truck and rail. Truck transportation handles 71% of this freight, with the balance by rail (29%). Almost half (48%) of combined truck and rail tons are estimated to pass through the region.

Source: IHS/Global Insight, 2008; Surface Transportation Board Waybill Sample, 2008

71% 29%

North Florida Surface Transportation Flows

(% of tons)

Truck

Rail

Truck

For truck transportation, the region’s top origins and destinations are predominantly to or from locations within Florida. Truck flows originating in North Florida are evenly split between break bulk , bulk and containerized goods; while bulk commodities represent 43% of the truck freight destined for North Florida. The remaining tonnage destined for North Florida is split evenly between break bulk and containerized commodities.

rail Reflecting the more long-haul nature of the region’s rail flows, the origins and destinations of goods shipped into and out of the region by rail are more likely to represent more distant parts of the nation located in the south, Midwest and, to a lesser extent, the northeast. Rail is mostly a container market out of North Florida and a bulk commodities market into Florida.

Surface Transportation Tons by Mode and Trip End Characteristic

mODeNORTH

FlORIDA ORIGIN

NORTH FlORIDA

DestINatION

INtra-REGIONAl

(BOTH TRIP ENDS IN NORTH

FlORIDA)

THROUGH NORTH FlORIDA (NEITHER TRIP END IN NORTH

FlORIDA)

tOtaL% OF

tOtaL

truck 16,103,143 27,948,165 18,584,887 48,942,962 111,579,156 71.22%

Rail 5,552,944 13,713,782 21,856 25,724,419 45,013,001 28.73%

Air (truck) 32,437 50,504 82,940 0.05%

Total 21,688,523 41,712,450 18,606,743 74,667,381 156,675,098 100.00%

% of Total 13.84% 26.62% 11.88% 47.66% 100.00%

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Waterborne TransportationInternational waterborne cargo (i.e., import and export cargo) accounts for approximately 71% of the 22 million tons of waterborne freight moving into and out of North Florida ports. Most (just over two-thirds) of the international cargo is import cargo.

imporTs Through NorTh Florida porTs (by ToNs)Imports through North Florida ports are destined for markets throughout the US. North Florida, however, is the destination for 54% of the imports. New York City is identified as having the second largest share of the market at 14%. Bulk products account for 83% of the imports at North Florida ports, with coal being the top commodity. Seventy-four percent (74%) of the imports through North Florida ports are from the Caribbean and South America. In this analysis, Puerto Rico is included in the Caribbean market and has a 19% market share.

ExporTs Through NorTh Florida porTs (by ToNs)Exports through North Florida ports originate from a wide variety of markets throughout the U.S. Jacksonville, the leading origin of exports through North Florida ports, has an 11% market share. Miami and Tampa have the second and third largest share of the market at 4% each. Overall, exports through North Florida ports are dominated by the containerized trade (80%), including miscellaneous general cargo commodities, grocery products and paper products. Seventy-three percent (73%) of exports through the North Florida ports are destined for the Caribbean. Puerto Rico has an 87% share of North Florida ports’ export market.

markETs

North Florida has a notable presence within the state of Florida’s overseas container market, representing the fourth largest destination market for imported containers and the third largest originating market for container exports.

49% 22%

29%

Waterborne Flows Through North Florida Ports (% of tons)

ImportExportDomestic

8%

33%

22%

5% 0%

0%

32%

0%

Southeast Asian Containers to North Florida by Port of Entry

N ATLANTIC

S ATLANTIC

N FLORIDA

S FLORIDA

FL GULF

OTHER GULF

WEST COAST

OTHER

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However, a significant percent of container imports to North Florida do not use a North Florida seaport. This is particularly true of the Southeast Asian container import market. For this market, North Florida ports handle only 22%, while non Florida south Atlantic U.S. ports and west coast U.S. ports handle a 33% and 32% share, respectively. North Florida seaports should position themselves to capture a portion of this traffic.

Additionally, land-locked counties with no local port, such as Central Florida markets, represent additional opportunity for North Florida ports to expand their market share.

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Current Port TrendsThe majority of cargo through North Florida’s ports travels through the Port of Jacksonville. Port of Jacksonville total import and export cargo tonnage remained steady, from 14.45 tons in 2009 to 14.61 tons in 2011.

Cargo through JAXPORT has increased since 2009. JAXPORT total tonnage has increased over 13%, from 7.3 tons in FY2009 to 8.2 tons in FY2012. JAXPORT TEUs have increased over 22%, from 754,352 in FY2009 to 923,660 TEUs in FY2012. Automobile units through JAXPORT increased over 45%, from 419,691 in FY2009 to 608,726 in FY2012.

1 This data reflects Journal of Commerce’s PIERS data from JAXPORT.

Airborne TransportationAir freight is a very small market relative

to tonnage handled by other modes of

transportation. most of the air freight

originating in North Florida and trucked to

an airport is contained within Duval County

(82%). likewise, Duval County is the largest

North Florida destination for trucked air

freight. For airborne travel from the region,

over half the air freight originating in North

Florida is destined for memphis – location of

FedEx hub. memphis is also the top origin of

air freight destined for North Florida.

2009 2010 2011 2012% chaNgE

(2009-2012)

7,281,963 8,043,925 8,128,013 8,236,977 13.11%

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2009 2010 2011 2012% chaNgE

(2009-2012)

754,352 826,580 900,433 923,660 22.44%

2009 2010 2011 2012% chaNgE

(2009-2012)

419,691 518,880 520,142 608,726 45.04%

New Business at JAXPORT Walt Disney Parks & Resorts importing merchandise through TraPac to Central FL parks

China Shipping /United Arab Shipping service connecting Jacksonville with China

MOL/Evergreen container service connecting Jacksonville with South China/Vietnam

2012 Honda CR-Vs manufactured in Ohio now exported through Jacksonville

7

Containers at TraPac Terminal at JAXPORT

Honda CR-Vs exported through JAXPORT -

Blount Island Terminal

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FACE OF FREIGHT

North Florida’s ports handle over 20 million tons of containerized, bulk and break bulk cargoes; including over 1 million TEUs of containers. Most of this cargo is handled at the Port of Jacksonville; however the Port of Fernandina serves important markets for North Florida as well. Together, these terminals include container, vehicle, dry bulk , liquid bulk and general cargo terminals; along with shipyards, US Navy and Marine Corps installations and power plants.

The following pages are intended to “put a face” on the cargo that moves through the North Florida’s ports, offering specific examples of the diverse mix of commodities handled along with their reach, both nationally and globally. Within the US, much of the cargo moving from and to the region’s ports moves across many miles, between the southeast, Midwest, northeast as well as the west coast. Globally, the region’s ports serve many markets and have numerous trade partners. Primary shipping partners, accounting for more than 70 percent of the maritime trade, are in Latin America and the Caribbean (including Puerto Rico), the Far East, Canada, Northern and Western Europe, the Middle East, and Africa1 .

1 Florida ‘s Five-Year Seaport Mission Plan (2012 to 2016), by the Florida Seaport Transportation and Economic Development (FSTED) Council

DRAFT NORTH FLORIDA FREIGHT, LOGISTICS AND INTERMODAL FRAMEWORK PLAN

INFRASTRUCTURE

Marine Terminals – North Florida’s deepwater seaports, gateways to reach overseas destinations, consist of The Port of Jacksonville, the major port within the region; and the Port of Fernandina, a niche port located to the north in Nassau County. Carrying container, break bulk and bulk commodities, the Port of Jacksonville has the opportunity to leverage the benefits of over 20 marine terminals, including Jacksonville Port Authority (JAXPORT), military and several private terminals. JAXPORT terminals, Blount Island, Dames Point and Talleyrand, total over 1,500 acres. The TraPac Container Terminal at Dames Point is JAXPORT’s major container terminal, consisting of 158 acres and serving as Mitsui O.S.K. Lines’, Ltd. (MOL) East Coast hub. Detailed seaport terminal graphics are contained in the appendix.

JAXPORT

Port of Fernandina

DRAFT NORTH FLORIDA FREIGHT, LOGISTICS AND INTERMODAL FRAMEWORK PLAN

INFRASTRUCTURE

Marine Terminals – North Florida’s deepwater seaports, gateways to reach overseas destinations, consist of The Port of Jacksonville, the major port within the region; and the Port of Fernandina, a niche port located to the north in Nassau County. Carrying container, break bulk and bulk commodities, the Port of Jacksonville has the opportunity to leverage the benefits of over 20 marine terminals, including Jacksonville Port Authority (JAXPORT), military and several private terminals. JAXPORT terminals, Blount Island, Dames Point and Talleyrand, total over 1,500 acres. The TraPac Container Terminal at Dames Point is JAXPORT’s major container terminal, consisting of 158 acres and serving as Mitsui O.S.K. Lines’, Ltd. (MOL) East Coast hub. Detailed seaport terminal graphics are contained in the appendix.

JAXPORT

Port of Fernandina

JAXPORT-Talleyrand Terminal

Port of Fernindina

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DestinationsJacksonville Distribution Center services over 200

stores throughout the Southeast by truck and rail

JAXPORT

“Cargo is like water; it will find the path of

least resistance.”M. Richard Markovich

Director, International LogisticsMichaels Stores, Inc.

North America’s largest specialty retailer of arts, crafts, framing, floral, wall decor, and seasonal merchandise.

About 6,400 TEUs Annually*

(Dames Point Terminal)

OriginsFrom Global Partners

*Note: About 4,000 FEUs expected in 2011 Source: Michaels Stores, Inc. 2011

michaEls sTorEs, iNc. – imporTs

Since the opening of Tokyo-based shipping line MOL’s container terminal on JAXPORT’s Dames Point Terminal (operated by TraPac) in 2009, the number of TEUs through the port has increased by 22%. Michaels Stores, Inc., one of the shippers utilizing MOL/TraPac’s container terminal at JAXPORT, imports over 6,000 TEUs annually of containerized merchandise from various global partners. From JAXPORT, this merchandise is trucked to Michael’s Jacksonville distribution center, which serves over 200 stores throughout the Southeast.

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DestinationsDelivered throughout the US by truck (55%), intermodal

(25%) and rail (20%) to over 30 different states, including

intermodal to California*

JAXPORT

Used for printing of magazines and fine and specialty papers

420,000 tons/year

(Talleyrand Terminal)

OriginFrom Finland

*Note: Significant amounts delivered to Pennsylvania, North Carolina, and Kentucky Source: Seaonus 2011

Market ShareAbout 65% of this shipper’s US imports utilize the Port

of Jacksonville

FiNE priNTiNg papEr – imporTs

JAXPORT imports a sizable amount of fine printing paper. About 420,000 tons per year are imported from Finland through the port’s Talleyrand Terminal. Once at JAXPORT, the paper is delivered throughout the US by truck and rail to over 30 different states, including intermodal to the state of California.

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Market ShareAbout 20% of all US poultry exports is shipped through the Port of Jacksonville

OriginsTrucked from processing plants in southeast states

such as Georgia, Florida, and North Carolina

JAXPORT DestinationsTo Global

Destinations, including Russia, the Far East and the Middle East

140,000 Tons (Talleyrand Terminal)

Source: Seaonus 2011

poulTry – ExporTs

About 20% of all US poultry exports are estimated to leave the country through JAXPORT’s Talleyrand Terminal. Over 140,000 tons of poultry are shipped to global destinations, including Russia, the Far East and the Middle East. This cargo is generally trucked from processing plants in southeastern states.

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Market ShareAbout 5% of vehicles handled by WWL in North America are

handled at JAXPORT

Inland Origins/DestinationsDelivered to/from various

manufacturers/dealers throughout the Southeast by

truck (51.5%) and rail (48.5%)

JAXPORT

DestinationsTo Global Destinations,

including the Middle East, Africa and the Caribbean

Wallenius Wilhelmsen Logistics (WWL) deliver global shipping and logistics for manufacturers of cars, trucks, heavy equipment, and specialized cargo

191,000 Vehicles

(Blount Island Terminal)

OriginsFrom Global

Origins, including Japan and Mexico

Source: WWL; 2012 annualized volume

WallENius WilhEmsEN logisTics (WWl) VEhiclEs – ExporTs/imporTs

As of fiscal year 2012, JAXPORT handles more than 608,700 automobile units, with about 80% of that through its Blount Island Terminal. WWL ships vehicles through Blount Island to and/or from various manufacturers and dealers throughout the Southeast by both truck and rail. Exports are destined to places such as the Middle East, Africa and the Caribbean, while imports originate from countries such as Japan and Mexico.

JAXPORT - Blount Island Terminal

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DestinationPuerto Rico

Market ShareAbout 90% of all US corn

syrup to Puerto Rico is shipped through the Port

of Jacksonville

OriginsRailed from Midwestern

production plants

64,000 Tons (Blount Island Terminal)

JAXPORT

Source: PIERS FY 2010 tonnage, Sea Star Line

corN syrup – ExporTs

JAXPORT handles a significant share of the US corn syrup (i.e., dextrose and glucose) shipped to Puerto Rico. This corn syrup generally originates in Midwestern production plants to be used in foods and beverages such as carbonated beverages, fruit juices, candy, cereals, jams and jellies, for example. About 64,000 tons is exported to Puerto Rico through the port’s Blount Island Terminal.

JAXPORT - Blount Island Terminal

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Market ShareCrowley handles 33% of North Florida exports to Puerto Rico

and the Caribbean.*

OriginsMajority comes from

throughout the southeast US and can extend into

the midwest

North Florida

149,217 TEUs

DestinationsTo Puerto Rico and

the Caribbean

(Jacksonville & Fernandina)

VirginIslands

5%

Bahamas5%

Puerto Rico84%

*Note: by 2011 TEU (twenty-foot equivalent unit) volume. The Caribbean includes: Puerto Rico, Virgin Islands, Bahamas, Dominican Republic, Trinidad, Cuba, Haiti, Northern Antilles, Jamaica, LW WWI, Barbados, and FW Ind.

Source: Crowley

Provides liner shipping and cargo services. The top five commodities through North Florida ports

include automobiles, grocery products, paper and cardboard, general cargo, and auto parts.

80% of US exports to Puerto Rico

ago through North Florida ports

croWlEy – ExporTs

Puerto Rico is a major trade partner for the North Florida. About 80% of US exports to Puerto Rico go through North Florida. Crowley, headquartered in Jacksonville, handles 33% of North Florida’s exports to Puerto Rico and to other parts of the Caribbean. These containers mostly come from throughout the Southeast US. Crowley leases space located on JAXPORT’s Talleyrand Terminal and has another terminal located just south of JAXPORT. Crowley’s top five commodities through North Florida ports include automobiles, grocery products, paper and paperboard, general cargo and auto parts.

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OriginIllinois basin

Port of Jacksonville

OriginColumbia,

South America

2 million tons/year - Coal

OriginTexas and

St. Croix, US Virgin Islands

OriginMexico

OriginIllinois basin via New Orleans

150,000 tons/year - Coal

1.1 million tons/year - Pet Coke400,000 tons/year - Limestone

1 million tons/year - Coal (Rail)

*Note: Commodity origin locations are subject to change Source: St. Johns River Power Park (SJRPP) and Jacksonville Electric Authority (JEA), 2011

JEA Northside Generating Station

SJRPP

poWEr plaNTs – coal/pET cokE/limEsToNE

About one-quarter of total cargo tonnage through the Port of Jacksonville is from coal and, petroleum (pet) coke destined to one of two power plants at the port. Coal, pet coke, and limestone are delivered via Panamax, self-unloading vessels, ocean barge and/or other vessel types, depending on the commodity. These dry bulk commodities originate in Columbia, the Caribbean, Mexico as well as the United States, and are used by the power plants to generate electricity for portions of North Florida.

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DestinationsTo Central America, the

Caribbean, and South America

Market ShareAbout 57% of this shipper’s

steel exports utilize the Port of Fernandina.

OriginsDelivered from areas

throughout the Southeast and Midwest. About 75%

arrives by rail.

318,000 Short TonsPort of Fernandina

Source: Kinder Morgan Terminals, 2011

sTEEl producTs - ExporTs

Sometimes called a niche port, the Port of Fernandina has traditionally served paper mills within the region and most recently has provided service to over ten pulp and paper producers located throughout Florida and the Southeast U.S. Additionally, the port handles steel exports as well as some containerized commodities. The Port of Fernandina’s steel export services have expanded in recent years as the port provides these services to several steel mills in the Southeast. The port handled 318,000 short tons of steel products (such as rebar, billets and coils) in 2011. These steel products came from throughout the Southeast and Midwest US to Central America, the Caribbean and South America.

Port of Fernandina

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Logistics Cost Analysis 2 Study data revealed that a significant share of Asian container imports to Florida and North Florida, enter the country through other ports. For Asian import containers to Florida, 38% enter through Florida seaports; 36% through Los Angeles; and 13% through Savannah. Likewise, 32% of Southeast Asian containers destined for the North Florida region are handled at West Coast Ports; and 33% are handled at non-Florida, south Atlantic ports (including the Savannah); while 22% are handled at North Florida ports.

In light of these container import trends, a logistics cost analysis was used to estimate the ability of North Florida ports to compete on a cost basis to serve Florida’s market, and capture a portion of the 3.1 million TEUs identified as consumed in Florida, but served by non-Florida ports. This analysis concluded that Florida ports provide a cost competitive routing to serve the Florida markets, over the use of the ports of Savannah and Los Angeles/Long Beach. The Florida market can be more cost effectively served by a Florida port and associated import distribution center, rather than by truck from the Port of Savannah, intermodally from the West Coast ports, or intermodally from the West Coast ports to distribution centers in Atlanta.

The results of this analysis speak well for Florida ports, and particularly for North Florida’s Port of Jacksonville. The analysis shows that Florida-bound Asian cargo entering the country through a North Florida port, and processed in a North Florida distribution center, has the lowest cost routing per container than a routing through the west coast or Savannah. Furthermore, if the distribution center is located within North Florida, then a routing through a North Florida port is the least cost option, compared to other ports (specifically, a South Florida port, a Gulf Florida port, Savannah and west coast ports). Finally, the analysis also showed that North Florida ports offered the least cost intermodal routing to Atlanta (from Hong Kong through the Panama Canal, as well as from Singapore through the Suez Canal).

2 This analysis was originally completed for the Florida Trade and Logistics Study (2010) and modified for the North Florida Freight, Logistics, and Intermodal Study. Martin Associates’ voyage cost model was used to estimate the voyage costs of calling each port in the analysis. The values of inputs were derived from several sources.

TraPac Container Terminal at JAXPORT

TRaPac Container Terminal at JAXPORT

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In order for North Florida to truly be able to capture import container cargo that is currently entering the country through other ports, the region must have supportive infrastructure and an equally supportive business climate. For example, in order for North Florida ports to effectively offer the least cost intermodal routing to Atlanta, competitive on-dock rail will become critical.

Asian Trade RouteTotal Logistics Cost to Serve Florida Retail Markets by DC Location – 250,000 SF

Least Cost Routing Highlighted in Yellow3

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Cost Effective Routing to Key Intermodal Hub Atl anta –

Hong Kong4

Cost Effective Routing to Key Intermodal Hub Atl anta – Singapore via Suez

4 Tables show results of analysis to determine if North Florida ports can compete against Savannah for market share in key intermodal hubs, such as Atlanta, for Asian intermodal business. The analysis focused on both the pre- and post-Panama Canal expansion market. The intermodal rates derived in this analysis were developed from various sources; then paired with corresponding vessel costs for each trade lane to determine the potential intermodal market penetration.

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FUTURE FREIGHT lEVElS The freight flow projections developed for the Florida Statewide freight flow study were used to estimate freight flows through 2035 originating in, destined for and passing through the North Florida region. Additional projection scenarios were also developed for waterborne and air freight flows.

Surface Transportation – Truck and R ailNorth Florida surface transportation freight flows are projected to grow from 157 million tons to 200 million tons by 2035. Truck and rail freight are projected to increase between 1-2% per year on average through 2035. This represents an average annual growth rate of 1% annually. The waterborne and air freight tonnages are not included in the tonnage figures referenced above as a portion of their volumes technically would be included in the truck and rail tonnages. The balance of the waterborne tonnage can be shipped by pipeline or consumed/produced on-site never requiring the use of on-road trucking and rail.

Air FreightAir freight, both in the air and over the road (truck), was assumed to grow at 3.6% per year based on projected growth at Miami International Airport. The air freight volume is very small compared to truck and rail volumes, 0.2% in the base year.

Waterborne ProjectionsWaterborne freight projections for the Jacksonville District (i.e., Port of Jacksonville) represent combined international (import and export) and domestic markets based on US Army Corps of Engineers and Jacksonville Port Authority data. Projections for the Port of Fernandina were developed from growth rates estimated in the Florida statewide study. Projections for both port areas were combined and are presented as projections for North Florida. The base year for this analysis was 2009.

United Parcel ServiceSoutheastern US

UPS (United Parcel Service) was founded in 1907 as a messenger company in the United States and has grown into a $42.6 billion worldwide corporation. Today, UPS offers a global network of specialized services including transportation, international trade support and supply chain services. As a result, UPS is a global company with one of the most recognized and admired brands in the world.

RS&H was retained by local airport owners to provide services that support UPS Airlines related projects. Resulting from this initial relationship, UPS has continued to contract RS&H directly to provide architectural, engineering and planning services at several locations throughout Southeastern United States. Projects include the development of a new Air Cargo and Package Sortation Facility at Southwest Georgia Regional Airport in Albany, Georgia and the development of a new Air Cargo Sortation and Distribution Facility at Orlando International Airport in Orlando, Florida. Additionally, RS&H continues to provide design services at UPS facilities beyond airport locations throughout the United States. The development of new facilities and modifi cations to existing facilities include close coordination with UPS Facilities and Engineering Departments to develop effi cient and cost effective solutions while allowing existing operations to continue at full capacity.

Client:UPS

RS&H Role:Architectural, Engineering and Planning Services

RS&H Services:Buildings

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In summary, break bulk and bulk tonnage at North Florida ports is projected to grow 1.5% annually in the Baseline scenario; while container volumes are projected to grow at 1% per year. Higher growth scenarios assume diversion of waterborne cargo through North Florida ports as well as the emergence of new bulk market opportunities. The diversion of targeted containerized import markets to Florida will result in a net increase in containerized freight in the North Florida region resulting in container volume growth of 3.1-4.4% per year. The emergence of new bulk markets has the potential of increasing bulk tonnage 5.6% per year. A higher growth scenario for break bulk cargo shows higher tonnage in 2015 and 2020 than in the Baseline but reaches the same Baseline tonnage in 2035.

A more detailed description of waterborne projections by commodity type follows.

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coNTaiNEr projEcTioNs

Three main steps were used to estimate future container flows in North Florida.

1. Projections of containerized cargo in the Jacksonville District were driven by estimated growth rates of three key container markets served by the District. The markets are Puerto Rico, Latin America and Asia.

2. The second step in developing the container projections was based on the logistics cost analyses described earlier. This analysis revealed immediate opportunities for Florida ports (including North Florida) to capture additional cargo now moving via non-Florida ports. These immediate opportunities were imported containers, particularly Asian containerized cargo, consumed in Florida and moving via other ports or distribution center gateways. Based on this analysis, an out of state “leakage” representing about 3.1 million TEUs (combining loaded import and export TEUs, as well as empty TEUs) was estimated.

3. Finally, an estimated 504,000 TEUs of cargo moves between the Port of Savannah and Atlanta (as an origin/destination market) and could potentially be diverted through Florida ports.

Forecast scenarios were developed for the potential diversion of the Florida-bound market not using Florida ports identified above. It was assumed North Florida ports, as well as other Florida ports, have the potential to divert a portion of this market to their ports.

Two scenarios were developed regarding this diversion market: a Moderate scenario that assumed Florida ports could divert 25% of the market, and an aggressive scenario assuming a 50% diversion. Based on the logistics cost analysis described earlier, it was further assumed for both scenarios that the diversion would be split in thirds between North Florida ports, South Florida ports and Florida Gulf Coast ports. The volume of diverted containers was assumed to grow 3% per year through 2035. It is further assumed diversions will occur gradually with the full 25% diversion of Florida containers using non-Florida ports occurring in 2015, the full 50% diversion occurring in 2020. A third scenario was developed as an addition to the aggressive scenario. The third scenario adds a full 25% diversion of the Atlanta-Savannah market in 2020. The Atlanta-Savannah market is also projected at 3% per year.

JAXPORT - Talleyrand Terminal

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Projected Container Units through North Florida Ports (TEUs)

The scenarios identified above are based on the fact that Jacksonville will deepen the channel to -47 feet, which will solve the Mile Point issue as well. It also critical for Jacksonville to have on-dock rail/ICTF at Dames Point to accommodate these markets.

A summary of projected container flows through North Florida ports by growth scenario (Baseline, Moderate, Aggressive and Aggressive Plus) is shown below. There is a 38% TEU difference between the Baseline and Aggressive Plus growth scenarios in 2015. The differences increase to 85% in 2020 and 124% in 2035. The exhibit also shows TEUs are projected to increase by 30% between 2010 and 2035 under the Baseline scenario and more than double under the Moderate and Aggressive scenario. Under the Aggressive Plus scenario TEUs will nearly triple during this period.

2010 2015 2020 2035% CHANGE(2010-2035)

Baseline 1,021,706 1,069,481 1,123,644 1,331,126 30.28%

Moderate 1,021,706 1,407,542 1,578,396 2,204,795 115.80%

Aggressive 1,021,706 1,453,362 1,911,890 2,724,369 166.65%

Aggressive Plus 1,021,706 1,480,762 2,076,291 2,980,500 191.72%

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brEak bulk projEcTioNs

Projections of the break bulk market for the Jacksonville District focused on the following commodities: automobiles and roll-on/roll-off (RORO), poultry, steel, paper, aluminum, lumber and other high and heavy goods (HHG).

A forecast of future break bulk tonnage flows through North Florida ports by growth scenario (Low and High) is shown below. A High growth scenario was developed for break bulk cargo handled in the Port of Jacksonville. Generally, the difference from the Baseline scenario was a higher growth rate for export autos and RORO cargo, 4% per year vs. 2% per year. However, the auto/RORO market is limited to a maximum of 933,000 tons due to storage capacity restrictions in the Port of Jacksonville.

There is a 1.5% tonnage difference between the Low (Baseline) and High growth scenarios in 2015 for the break bulk market. The difference increases to 3.3% in 2020. However, there is no difference in 2035 due to JAXPORT’s vehicle storage capacity being reached prior to 2035. The exhibit also shows tonnage is projected to increase 52% between 2010 and 2035 under the Low and High scenarios.

Projected Break Bulk Tonnage through North Florida Ports

2010 2015 2020 2035% CHANGE(2010-2035)

Baseline (Low) 1,592,451 1,912,025 2,031,899 2,413,837 51.58%

High 1,592,451 1,941,230 2,099,678 2,413,837 51.58%

JAXPORT - Talleyrand Terminal

JAXPORT - Talleyrand Terminal

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bulk projEcTioNs

Projections for bulk cargoes in the Jacksonville District focused on coal, aggregate and liquid bulk products. Potential emerging bulk markets have been identified with tonnage projected for 2015 and growing 16.5% per year through 2020 based on industry interviews. This level was maintained through 2035. Low and high growth scenarios were developed for the bulk market incorporating market projection assumptions for coal, aggregate, liquid bulk and emerging markets. The low scenario included the coal, aggregate and low growth liquid bulk projections. The high scenario included the coal, aggregate, high growth liquid bulk and the emerging market projections.

A summary of projected bulk tonnage flows through North Florida ports by growth scenario (Low and High) is shown below. The High growth scenario developed for bulk cargo handled in the Port of Jacksonville includes a higher growth scenario for liquid bulks and the identified emerging markets. The liquid bulk market is projected to grow 1% per year after 2015, compared to no growth in the Baseline scenario. The projected tonnages for the emerging bulk markets are included in the 2015 tonnage projection figure and grow 16.5% per year to 2020. The emerging market is projected to remain steady through 2035. The exhibit shows there is an 86% tonnage difference between the Low (Baseline) and High growth scenarios in 2015 for the bulk market. The difference increases to 182% in 2020 and 147% in 2035. The exhibit also shows bulk tonnage is projected to increase 43% between 2010 and 2035 under the Low scenario and increase 291% under the High scenario.

Projected Bulk Tonnage through North Florida Ports

2010 2015 2020 2035% CHANGE(2010-2035)

Baseline (Low) 12,940,205 16,314,013 16,790,432 18,468,539 42.72%

High 12,940,205 30,314,013 47,280,718 50,584,908 290.91%

JAXPORT - Dames Point Terminal

JAXPORT - Dames Point Terminal

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SUmmARy AND RECOmmENDATIONSNorth Florida currently serves as a gateway to the region, state and nation for several markets and commodities as presented in the Face of Freight sub-section of this report section. These existing markets represent key growth opportunities as well as key markets to protect and maintain. Additionally, North Florida is well positioned for emerging markets and trade lanes for containerized break bulk (RORO) and bulk commodities.

The following recommendations represent starting points for market related activities. Combining these recommendations with those related to Business Climate and Infrastructure sections, and continuing the regional dialogue with tactical collaboration is a clear differentiator for North Florida.

Focus on E xisting M arkets and Developing Niches

A common premise in business development is the 5:1 ratio related to developing new business lines/clients versus maintaining/expanding existing clients/markets. Clearly, North Florida has developed strong business ties within the vehicle import/export (RORO) industry as well as the Puerto Rico, Caribbean, and South and Central American markets.

Moving forward, it will be important that the region’s stakeholder’s look to expand and protect North Florida’s existing markets and developing niche markets. To achieve this goal, regional stakeholders should leverage the strength of North Florida’s existing markets by maximizing the competitive 40-foot channel for the Port of Jacksonville as well as the in-place marine and surface transportation infrastructure. Furthermore, protecting the region’s existing markets should be a key objective in the on-going Strategic Master Plans for JAXPORT and the Port of Fernandina.

New Business at JAXPORT Walt Disney Parks & Resorts importing merchandise through TraPac to Central FL parks

China Shipping /United Arab Shipping service connecting Jacksonville with China

MOL/Evergreen container service connecting Jacksonville with South China/Vietnam

2012 Honda CR-Vs manufactured in Ohio now exported through Jacksonville

7

Jaxport - Blount Island Terminal

Jaxport - Blount Island Terminal

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Asi an Container R ec aptureAlong with existing markets, it is an imperative that the North Florida region determine how best to work with the State of Florida to recapture the estimated 3.1 million TEUs of containerized cargo entering the state via non-Florida ports. Trade flow analysis completed for the Florida Trade and Logistics Study (2010) and this regional plan, revealed immediate opportunities exist for Florida ports especially North Florida ports given transit costs, logistics and geography.

These immediate opportunities are imported containers, particularly Asian containerized cargo, consumed in Florida and imported through other non-Florida ports (Savannah and west coast ports), as well as warehouse cargo from non-Florida distribution centers that move into Florida by truck .

Additionally, the trade flow analysis revealed an estimated 504,000 TEUs of added cargo moves between the Port of Savannah and Atlanta that could potentially be captured by Florida ports; for a total 3.6 million TEU combined market potential for containerized cargo.

In an important step toward attracting Florida-bound Asian cargo, in June 2012, Walt Disney Parks and Resorts negotiated with TraPac/MOL to bring a majority of their Central Florida-bound cargo through JAXPORT, shifting from the Port of Savannah.

It is recommended that North Florida freight and logistics leaders identif y the next three (3) similar opportunities to redirect and recapture Florida-bound Asian containers.

TracPac Container Terminal at JAXPORT

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M anufacturing/Distribution Center E xpansion

An important component of the region’s ability to expand into additional markets includes it’s capability to expand existing and attract emerging manufacturing and distribution centers sectors. Manufacturing and distribution centers will help support the region’s ability to both maintain and expand trade markets. Manufactured exports drive Florida’s economy, as manufacturing accounted for 85 percent of Florida’s exports in 2010 . Additionally, distribution centers and related services have been shown to be critical to successful ports and their surrounding regions.

Two specific recommendations for further expansion of the region’s manufacturing , warehousing and distribution centers are:

{ Updating the 2005 Jacksonville Industrial Land Use Report;

{ Conducting a regional assessment of intermodal logistics center (ILC), inland port and distribution center opportunities and developing a regional plan.

Updating and developing these plans would be supportive of the region’s trade market needs, by further identif ying the land use components that are required to support the region’s ability to maintain and attract trade markets; and including them in an integrated and comprehensive regional plan. Major economic development sites such as Cecil Commerce Center in Duval County, Woodstock in Baker County, Nassau’s Crawford Diamond, and Plum Creek, located west of the region in Columbia County should be included in such regional plans.

WinnDixie Distribution Terminal

WinnDixie Distribution Center

Container at JAXPORT

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INTRODUCTIONInfrastructure is the backbone of the freight and logistics industry, supported heavily by a favorable business climate, which attracts and provides opportunity for economic growth and vitality in the North Florida region. The North Florida region’s logistics industry is working hard to position itself for significant growth, driven by domestic growth and emergence as an international global hub. This moment in time provides a tremendous opportunity for the North Florida region to cultivate an environment enabling business leaders to help the region maintain and elevate its economic competitiveness, encouraging job creation and retention, through a favorable business climate. This section describes how North Florida’s business climate is affected by regional, state, national and global trends related to demographics; plans and policies; and economic opportunities.

BUSINESS

4 | CLIMATEINTRODUCTION

CONDITIONS AND OPPORTUNITIES

SUMMARY AND RECOMMENDATIONS

• CONDITIONS AND OPPORTUNITIES

• SUMMARY AND RECOMMENDATIONS

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CONDITIONS AND OPPORTUNITIES

National PerspectiveU.S. population and economic growth are continuing to shift to the south and west. The U.S. economy, by increasing numbers, f inds its strongest geographic areas to be 10 to 12 megaregions of interconnected urban areas, with four megaregions located in the south. The southern states are expected to account for about one half of all growth during the next 50 years.

The newest national transportation bill , Moving Ahead for Progress in the 21st Century (MAP-21) was signed into law on July 6, 2012. The bill provides a 27-month, $118 billion authorization. The new provisions of the law went into effect October 1, 2012.

HOW DOES MAP-21 ADDRESS FREIGHT? MAP-21 mandates the development of a National Freight

Strategic Plan by the U.S. DOT within three years, to be updated every five years. In August 2012, the U.S.DOT launched a Freight Policy Council to develop the National Freight Strategic Plan, and to work on other key freight provisions in the MAP-21 legislation

A national freight network of up to 30,000 miles critical to the movement of freight, will be identified by the U.S. DOT

The U.S. DOT is required to report on performance and conditions of the freight network, including the development of improved tools to assess the performance and evaluate the impacts of freight related projects

States are encouraged, but not required, to develop statewide freight plans developed with the oversight of a state advisory committee

The priorities emphasized in this bill include streamlining project processes to increase efficiency; accelerating project delivery; and eliminating duplication in an effort to focus limited public resources. Performance measures drive much of the funding allocations and direct resources to those projects delivering the greatest relative benefits.

CONDITIONS AND OPPORTUNITIES

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FREIGHT RELATED INDUSTRY ISSUES

Important issues to the trucking industry have been generally influenced by a slow growing economy along with challenging regulations. Many of these concerns received attention in ATRI’s (American Transportation Research Institute) recent survey of critical trucking industry issues1. Top ranking issues in ATRI’s survey included: Hours-of-Service; Compliance, Safety, Accountability; the economy; and driver shortages. Related issues included fuel prices; electronic on-board recorders and logging devices; truck parking needs; and driver retention, health and wellness. Congestion and truck bottlenecks were also critical concerns.

Hours-of-Service (HOS) – In December 2011, a federal rule was put in place to reduce excessively long work hours that potentially increase both risk of fatigue-related crashes and long term health problems for commercial truck drivers. On average, the rule reduces a driver’s maximum allowable hours of work per week from 82 hours to 70 hours, a 15% reduction. The final rule has a compliance date of July 2013. Many in the industry believe that reducing driving hours will have costly operational impacts that negatively impact the entire supply chain. On a related issue, MAP-21 includes a provision that mandates electronic logging devices (ELD) in commercial motor vehicles (CMV) for the purpose of recording HOS in CMVs.

Compliance, Safety, Accountability (CSA) – The CSA program began in 2010 under the U.S. DOT’s Federal Motor Carrier Safety Administration (FMCSA) to improve commercial truck and bus safety. Inspections and crash data help determine a carrier’s on-road performance allowing safety enforcement officials to correct high risk behaviors. Although many believe CSA will be an effective tool for increasing safety, opinions vary within the industry.

Driver Shortages – Driver shortage is a major concern in the industry. Shortages may be influenced by a number of reasons, including baby boomer retirements; CSA and HOS driving restrictions, and pre employment screening programs (potentially impacting the number of qualified drivers and/or driver productivity); driver working conditions; and, for some in the industry, business growth that influences the need for more drivers.

1Critical Issues in the Trucking Industry – 2012, Presented to the American Trucking Associations, Prepared by ATRI, October 2012

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Seaport proponents are encouraging congress to support investments in the national maritime infrastructure, streamline approval processes, as well as to authorize the deepening of East Coast ports2.

Harbor Maintenance Taxes (HMT3)/Water Resources Development Act (WRDA) – WRDA, legislation with the potential to streamline the federal maritime project review process and to reform HMT so that more resources go toward maritime projects (such as maintenance dredging), is being encouraged by many in the industry. The last WRDA was passed in 2007.

Short Sea Shipping / Marine Highways Program – Short Sea Shipping4 is being encouraged by some in the industry as a way to reduce roadway congestion. The federal government, through the Maritime Administration, is encouraging this type of trade, through America’s Marine Highways: short sea routes and inland water routes that provide additional capacity to relieve congested landside routes serving freight and passenger movement. M-95 stretches from Maine to Florida and is the designation for the shipping lane along the Atlantic Coast paralleling interstate highway I-95. The Short Sea Shipping Act of 2011 was proposed to exempt domestic shipping from the HMT.

In the rail industry the Rail Safety Improvement Act of 2008 (RSIA) mandates the widespread installation of positive control systems (PTC) systems by December 2015. Lines requiring PTC are essentially Class I railroad main lines that handle any poisonous-inhalation-hazardous materials; and, any railroad main lines over which regularly scheduled intercity passenger or commuter rail services are provided5.

2www.midwestshippers.com/news_detail.php?article=13823HMT is a federal tax imposed on shippers based on the value of cargo/goods transported between U.S. ports, and cargo imported to U.S. ports from other countries, but not on exports. The purpose of the HMT is to generate revenue from port users for port maintenance (such as dredging) conducted by the U.S. Army Corps of Engineers. (www.aapa-ports.org/search/browseResults.cfm?MetaDataID=35) 4Placing containers and other cargo onto barges and smaller vessels for the purpose of transporting them from larger import/export ports (AAPA, www.aapa-ports.org/Issues/USGovRelDetail.cfm?itemnumber=892)5Federal Railroad Administration (www.fra.dot.gov/rrs/pages/fp_1265.shtml)

Port of Jacksonville

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PORTS REVIEW

Through this study, an in depth review of four ports (Miami, Savannah, Charleston and Norfolk) identified strategic themes resulting in business success for the ports and the cities and regions in which they are located. Each of the four ports revealed several noteworthy strengths and characteristics. Summarized as Best Practices with regard to business climate, these elements, listed below, provide valuable information for North Florida to ensure the competiveness of its port facilities in the future.

Flexible, long range plans that are updated continuously

Strong support, coordination and partnerships

Maximize existing resources

Understanding the process

Strong , coordinated support for freight-related services and infrastructure; a thorough understanding of the planning and funding processes; and the ability to maximize existing resources are all important to having a productive business climate for freight, logistics and intermodal connectivity.

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StatewideMomentum and support for the state’s freight movement environment has improved. Many of Florida’s elected officials, including Governor Scott have recently supported key statewide initiatives to promote trade and transportation

The Florida Trade and Logistics Study (December 2010) is the foundation for this study and identified the need for statewide attention on global trade and logistics as a targeted industry and a focus area for Enterprise Florida, Workforce Florida, Florida Department of Economic Opportunity, the Florida Department of Transportation, and other state agencies. This is represented by a statewide need to strengthen existing marketing , incentives, and support services to meet the needs of this cluster. The six pillars identified as focus areas for growing Florida’s economy include:

Talent Supply and Education

Innovation and Economic Development

Infrastructure and Growth Leadership

Business Climate and Competitiveness

Civic and Governance Systems

Quality of Life and Quality Places

Completion of a second phase of the Florida Trade and Logistics study is expected in early 2013.

The FDOT understands the significant role freight movement plays in supporting the economic competitiveness of our state. In response to the heightened attention placed on freight movement in Florida, the Office of Freight, Logistics and Passenger Operations (FLP) was created, which includes Aviation and Aerospace; Rail and Motor Carrier Operations; Seaports and Waterways; and Transit. The office will act as a tool to better connect, develop, and implement a freight planning process that will maximize the use of the existing facilities and integrate and coordinate the various modes of transportation, including the combined utilization of both government-owned and privately-owned resources.

Six pillars of Florida’s future economy

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RECENT FLORIDA LEGISLATION

Since the creation of the Office of Freight, Logistics and Passenger Operations, recent Florida legislation supports and provides for opportunities to elevate freight project planning and funding. Florida’s Transportation and Mitigation Programs Bills (HB599/SB 1998) contain a number of changes to the laws which are administered by or affect the FDOT. Highlights of the bill related to freight, logistics and intermodal movements include:

Funding for Se aport Initi atives Increased minimum funding of the Florida Seaport

Transportation and Economic Development (FSTED) program from $8 million to $15 million annually. Projects eligible for funding by grants under the program are limited to port facilities or port transportation projects, include seaport master plan or strategic plan development or updates

Created the Strategic Port Investment Initiative to set aside an additional $35 million annually for projects essentially deemed to have statewide or national impact, meeting the state’s economic development goal of becoming a hub for trade, logistics and export-oriented activities

Freight Mobilit y Pl anning Currently, Florida is proactively acting on the MAP-21 law by

developing a Freight Mobility and Trade Plan. The plan involves the integration of extensive stakeholder involvement and feedback and has multiple key points for interaction throughout the process. Regional listening forums were recently conducted throughout the state. The study is expected to conclude in July 2013.

Called for a Statewide Seaport and Waterways System Plan, which is to be developed by FDOT

Included military access facilities on the Strategic Intermodal System (SIS) and emerging SIS

Florida DOT Secretary Ananth Prasad created

the FLP Office, which “will play a key role

in advancing Governor Scott’s initiatives to

transform Florida’s economy by becoming

a global hub for trade, logistics, and export-

oriented manufacturing.”

FDOT Office of Freight Logistics and Passenger

Operations

Aviation and Aerospace

Rail and Motor Carrier Operations

Transit Office

Seaports and Waterways Office

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Intermodal Logistics Created a new Intermodal Logistics Center (ILC) Infrastructure

Support Program with funding up to $5 million annually; and

Designated ILCs part of the SIS and waived transportation concurrency requirements for certain ILCs

The following table highlights notable bills from Florida’s 2011 and 2012 Legislative sessions, with potentially positive impacts to North Florida’s freight movement environment.

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NAME/TOPIC SUMMARY DESCRIPTIONPOTENTIAL IMPACTS TO NORTH FLORIDA

YEARAPPROVED

HB 599 Transportation and Mitigation Programs

Contains a number of changes to the laws which are administered by or affect the FDOT. Highlights related to freight, logistics and intermodal movements include: Increases minimum funding of the Florida Seaport Transportation and Economic Development (FSTED) program from $8 million to $15 million annually; Creates the Strategic Port Investment Initiative to set aside an additional $35 million annually from the Statewide Transportation Trust Fund for certain seaport projects; Creates a new Intermodal Logistics Center (ILC) Infrastructure Support Program with funding up to $5 million annually; Allows designated seaports to make use of offsite stormwater management facilities under certain conditions; Revises environmental mitigation requirements related to transportation projects; Calls for a Statewide Seaport and Waterways System Plan, which is to be developed by FDOT; Requires FDOT to develop a Freight Mobility and Trade Plan; Includes military access facilities on the Strategic Intermodal System (SIS) and emerging SIS; and Designates ILCs part of the SIS and waives transportation concurrency requirements for certain ILCs.

Ports are required to develop a strategic plan with a 10-year horizon. Opportunity for additional funding for seaports and ILCs. Expansion of the region's SIS to include military access facilities and ILCs

2012

HB 503 Environmental Regulation

Creates, amends and revises numerous provisions relating to environmental permitting, such as providing expedited permitting for any inland multimodal facility receiving and/or sending cargo to and/or from Florida ports.

Expedited permitting for inland multimodal facilities using North Florida ports.

2012

HB 59 Spaceport Territory

Extends existing spaceport territory to include Cecil Airport and the Cecil Commerce Center. Businesses engaged in spaceport activities and located on newly designated spaceport territory may be eligible for a tax exemption on machinery and equipment.

Additional economic development at Cecil that may also encourage additional freight movement to/from the Cecil area.

2012

HB283 Seaport Security

Streamlines security at FL ports by eliminating duplication with the comprehensive Federal Port Security requirements.

Reduced costs to North Florida's ports due to elimination of state security standards.

2011

Florida’s Recent Freight, Logistics and Intermodal Legislation

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BUSINESS CLIMATE | 4–10

NAME/TOPIC SUMMARY DESCRIPTIONPOTENTIAL IMPACTS TO NORTH FLORIDA

YEARAPPROVED

HB 7207 Growth Management

Aligns state oversight of growth management with protecting important state resources and facilities leaving growth management decisions concerning local resources and facilities with local officials. Some highlights of this bill include making concurrency for certain facilities optional for local governments; removing industrial areas from the list of developments of regional impact; no longer requiring comprehensive plans to be financially feasible; and abolishing Rule 9J-5 (DCA’s growth management regulations).

Streamlined requirements for developers, specifically for industrial developments. Frees industrial development from the DRI process.

2011

HB 879Targeted Economic Development

Revises qualified targeted industry list to include global logistics

Additional economic development in the global logistics industry. Global logistics industries that meet certain criteria will be eligible for tax refunds.

2011

HB 399Infrastructure Investment

Requires ports to develop strategic plans to be consistent with local comprehensive plans; and Includes several environmental provisions among others, such as requiring DEP to approve or deny port conceptual permit applications within a specified time

Benefits to the region's ports 2011

SB 2156Governmental Reorganization

Creates Department of Economic Opportunity (and transfers portions of Department of Community Affairs, Agency for Workforce Innovation and all of Office of Trade Tourism Economic Development to DEO); Allows the State Economic Enhancement and Development (SEED) Trust Fund to fund infrastructure and job creation activities related to areas such as transportation facilities that meet a strategic/essential state interest with respect to economic development of the state; economic development incentives for job creation and capital investment; and workforce training associated with a new or expanded business

A more rapid response and unified approach to job creation.

2011

HB 7205State Economic Enhancement and Development (SEED) Trust Fund

Creates State Economic Enhancement & Development Trust Fund within Department of Economic Opportunity

Serves as a dedicated recurring funding source to enable Florida and the region to be proactive and better positioned to capitalize on economic development opportunities and increase Florida's global competitiveness

2011

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BUSINESS CLIMATE | 4–11

FLORIDA’S ECONOMIC INCENTIVES

Florida has a diverse set of economic incentive programs in place to attract and retain freight and logistics investments. These incentives address targeted industries, workforce training , infrastructure, and growth in specific areas across the state. In 2011, Florida created the State Economic Enhancement and Development (SEED) Trust Fund, a dedicated recurring funding source to help the state capitalize on economic development opportunities.

Approved through Florida’s legislative process, the state’s economic incentives consist of the following types of incentives, some of which are special state incentive programs available only for high economic impact projects:

Cash and grants, such as the Quick Action Closing Fund (QACF), High Impact Performance Incentive (HIPI), and Economic Development Transportation Fund (Road Fund)

Tax credits and refunds, such as the Qualified Target Industry (QTI) Tax Refund

Tax exemptions, such as machinery and equipment sales tax exemption

Workforce incentives, such as the Quick Response Training (QRT)

Enterprise zone, urban, and rural opportunities, such as tax credits and tax exemptions

Free property and property tax refunds

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BUSINESS CLIMATE | 4–12

Although Florida offers attractive economic incentives, the state faces stiff competition regarding incentives. Nearby states such as Georgia, South Carolina, Alabama and Mississippi, are considered very aggressive states regarding incentives, have expedited permitting , and present a challenge to Florida’s economic competitiveness. Initiatives like Georgia Chamber’s newly created Georgia Transportation Alliance provide increased competition for Florida. Regarding port related incentives, there is also a trend toward increasingly aggressive port incentives in Southeastern states. These port incentives are geared toward promoting use of in-state ports, encouraging in-state shippers to use their seaports and stimulating development in seaport infrastructure. North Florida’s close proximity and logistics competitiveness positions the region’s business climate for aggressive incentives to attract logistics related business.

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BUSINESS CLIMATE | 4–13

0%

5%

10%

15%

20%

North Florida Florida U.S.

North Florida Florida U.S.

R egional There are many factors that come into consideration when trade and logistics companies consider expansion or relocation. North Florida offers near unparalleled combination of quality of life, workforce and business opportunities. In terms of business climate, Florida and Jacksonville generally earn accolades from a series of publications for relatively low taxes (e.g., no state income tax) and a business-friendly environment. Tremendous opportunities exist for North Florida’s freight and logistics stakeholders to focus on and expand the region’s existing and anticipated strengths related to business climate.

POPULATION AND LIVABIL ITY

North Florida’s population grew 19% between 2000 and 2010, nearly twice the national rate of 9.7% during the same time period. Within the six-county North Florida region, Clay and St. Johns counties are leading the pack in growth.

North Florida is expected to grow by

35 percent and be home to 1.9 million

people by 2030

Source: US Census Bureau

Reality Check First Coast Visioning (2009)

(Urban land Institute and Northeast Florida

Regional Council)

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BUSINESS CLIMATE | 4–14

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

1970 1980 1990 2000 2010 2020 2030

Baker

Putnam

Nassau

Clay

St. Johns

Duval

Florida’s population is expected to grow from 18.8 million in 2010 to 23.8 million in 2030, easily displacing New York as the third largest state in the country and accounting for nearly 8 percent of US growth. During this 20-year period, North Florida is expected to grow by 35 percent. These growth rates were developed by the University of Florida’s Bureau of Economic and Business Research in 2010 and are subject to revision, however, by 2030, North Florida is forecast to have 1.9 million people.

North Florida’s appeal as a preferred destination for workers and retirees will need to be maintained over the next 20 years if it is to reach the growth scenario indicated in the forecast.

EMPLOYMENT

Similar to the robust rise in population, long-term employment growth in North Florida had until recently been expanding at a rate well above national averages. Between 1990 and 2007, the number of people employed in North Florida increased by 53 percent, compared to 49 percent and 26 percent, respectively, for Florida and the United States. Conditions in 2007, however, began to change and the rate of growth began to slow. Employment numbers in North Florida showed their first decline in years in 2008 and the pace of job losses accelerated in 2009 followed by stabilization in 2010.

Source: Florida Office of Economic and Demographic Research

Existing and future developed lands in North

Florida (1000 Friends of Florida, 2006)

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BUSINESS CLIMATE | 4–15

TRADE AND LOGISTICS INDUSTRY

The transportation and warehousing industries play major roles in the national economy. Trade and Logistics jobs, businesses identified as the movers and processors of freight, are comprised of two major industry sectors: (1) Transportation and Warehousing (NAICS 48-49)6, and (2) W holesale Trade (NAICS 42). Together, they represent 9.4 percent of the total jobs in the North Florida region. The region’s percentage of Trade and Logistics jobs exceeds the state of Florida (7.4%). Trade and Logistics jobs have higher wages than other industry segments. The average wage in these industries was $54,714, about 29 percent higher than the average for all jobs in the state.

Combining Trade and Logistics jobs with other key industry sectors, called freight intensive industries, indicates that almost half of the region’s jobs are “freight-related.” In total, “freight-related” jobs accounted for almost 46 percent (263,000) of the total jobs in the North Florida in 2009.

7.4% 9.4%

0%2%4%6%8%

10%

Florida North Florida

Perc

enta

ge o

f Dire

ct

Jobs

North Florida Trade and Logistics Share of Jobs

Source: Florida Agency for Workforce Innovation, Quarterly Census

of Employment and Wages

6The total for the Transportation and Warehousing industry did not include 14 passenger transportation related industry sub-sectors.

Trade and Logistics Share of Jobs (2009)

Page 88: N FL Framework Plan report cover.psd

BUSINESS CLIMATE | 4–16

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

2001 2002 2003 2004 2005 2006 2007 2008 2009

Annu

al A

vera

ge W

ages

Year

Annual Average Wages -Trade and Logistics

Annual Average Wages -Freight-Intensive Industries

Annual Average Wages - All Industries

Source: Florida Agency for Workforce Innovation, Quarterly Census of Employment and Wages

WORKFORCE AND EDUCATION

Employ Florida Global Logistics Banner Center for Workforce Florida, Inc. commissioned the Comprehensive Industry Analysis for the Logistics Industry in the State of Florida, completed in March 2011. The purpose of this study was to identif y strengths and weaknesses relative to the business climate for the logistics industry. This study dovetails to the Florida Trade and Logistics Study (2010) and is intended to serve as a tool for the state to attract logistics industry professionals and business investment to areas of the state with strength in port and logistics infrastructure and industry training.

Duval County is one of five top Florida counties for logistics and distribution employment. Duval, Orange, Hillsborough, Broward and Miami-Dade Counties have between 25K and 55K logistics and distribution jobs.

North Florida Average Wage Comparison (2001-2009)

Page 89: N FL Framework Plan report cover.psd

BUSINESS CLIMATE | 4–17

This study discusses the concentration of logistics and distribution; inland ports; favorable small business climate; and strengths and weaknesses on a statewide level. Although this study recognizes the educational systems as a strength in North Florida; it also recognizes opportunities to establish career pathways of learning in logistics and distribution hubs throughout the state. The following table shows educational programs available in the North Florida region.

Source: Banner Center, Comprehensive Industry Analysis, Logistics Industry, March 2011

NORTH FLORIDA ACADEMIES, DEGREES AND CERTIFICATION NAME/TOPIC

International of Logistics Career Academies County

First Coast High School International trade and Logistics Academy Duval

Nathan B. Forrest High School’s Global Logistics and Supply Chain Technology Duval

Ponte Vedra High School Academy of International Business and Marketing St. Johns

Robert E. Lee High School International Logistics Academy Duval

Terry Parker High School’s Global Business Enterprises SLC (GBE) Duval

Associates Degree County

Florida State College at Jacksonville (FSCJ) Duval

Bachelors Degree County

Embry Riddle Aeronautical, Worldwide Duval/Clay

University of North Florida (UNF) Duval

Master’s Degrees County

University of North Florida (UNF) Duval

Certifications County

Global Logistics Associate (GLA) - FSCJ, FGC Duval/Columbia

Professional Designation in Logistics and Supply Chain (PLS) - FSCJ Duval

Certification in Transportation and Logistics Cohort Program (CTL) - UNF Duval

Professional Designation in Logistics Supply Chain Management (PLS) - UNF Duval

Supply Chain Management/Logistics Technology Certification Program - UNF Duval

Supply Chain Management. Logistics Financial Management Certification Program - UNF Duval

Freight Agent/Broker - UNF Duval

Logistics and Transportation Specialist - FSCJ/FGC Polk State College )PSC Duval

Note: Gulf Coast Community College (GCCC), Panama City is seeking a Logistics Certification in the fall of 2011

Page 90: N FL Framework Plan report cover.psd

BUSINESS CLIMATE | 4–18

SUPPORTING LAND USES AND ENTITLEMENTS

Northeast Florida is a recognized hub of logistics, distribution, and industrial-supportive market sectors. Its proximity to Interstates 95 and 10, combined with direct access to the Atlantic Ocean via deep water ports, make it geographically suited to such activities. From a regulatory standpoint, The City of Jacksonville and the North Florida region are quite receptive to the growth and development of these sectors. In recent years, following the recovering economy, approval processes region-wide are generally favorable to non-residential and job-generating uses.

Duval Count yIn the case of Jacksonville, there has been approximately 5000 acres of land (comprised of individual sites greater than 50 acres) converted from non-industrial to industrial categories between 2005 and 2012. These industrial-supportive land use categories include Business Park (BP), Heavy and Light Industrial (HI/LI), Water-Dependent/Water-Related (WD/WR), and Mixed Use (MU). The City of Jacksonville Comprehensive Plan documents the importance of industrial uses to the long-term economic well-being of the City. As such, it has established an “Industrial Preservation Map”, identif ying existing strategically located industrial lands as “Industrial Sanctuary” or “Areas of Situational Compatibility”. These areas are presumed to be appropriate for land use amendments to the aforementioned land use categories to the extent that such areas are shown to promote and sustain industrial expansion and economic development. Jacksonville’s Cecil Commerce Center is a prime example of a major site in Northeast Florida dedicated toward manufacturing , supply chain logistics and industrial end users. Fully entitled and directly adjacent to I-10, Cecil Commerce Center represents more than 3 percent of the land area in Duval County. With both industrial and commercial zoning , it offers approximately 8,300 acres of city-owned, fee-simple sale, mid to large size, development-ready sites. Existing buildings are also available for lease.

WHAT YOU TOLD US

In an on-line survey of stakeholders, North

Florida’s overall business climate related

to the freight/logistics industry, was given a

C-average grade (2.41 on a scale of 0 to 4,

with 4 being an A-excellent). When asked

to check up to three components of North

Florida's business climate to focus on within

the next one to two years, stakeholders

selected long range planning (67%),

incentives offered to businesses (49.3%), and

partnerships and collaboration (37.3%).

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2030 Future Land UseFebruary 28, 2012

Developed by James M. Reed, AICP - [email protected] 2012Content intended for illustrative purposes only

0 12,000 24,000 36,000 48,0006,000Feet

Page 91: N FL Framework Plan report cover.psd

BUSINESS CLIMATE | 4–19

St. Johns Count y:St. Johns County currently has an economic development incentive ordinance. The County supports job-generating uses, particularly industrial, manufacturing and distribution activities, through an expedited permitting process.

St. Johns County’s economic development incentive ordinance provides consideration of expedited permitting and grants for new and existing businesses, including industrial, manufacturing and distribution activities through the reimbursement of general county ad valorem taxes (real property taxes) and reimbursement of impact fees and water/sewer connection fees.

The World Commerce Center DRI and the Saint Johns DRI both allow Industrial and Warehouse uses, of which portions are constructed. The World Commerce Center DRI allows up to 453,900 square feet of Industrial uses Saint Johns allows up to 2,464,000 square feet.

The Future Land Use Map designates areas for industrial uses of which portions are built. For consideration of entitlement yields, the Comprehensive Plan allows a maximum 75 percent Impervious Surface Ratio and 70 percent Floor Area Ratio for development in the Industrial designations. In addition, all other land development code regulations, such as but not limited to drainage, parking , buffering/screening and open space requirements need to be considered.

The Lemburg South property located south of Big Oak Road, west of US 1 N is designated Industrial on the Future Land Use Map but is limited by Policy A .1.11.1 (h) (8) (i) of the Comprehensive Plan. In this same general location, the Airport District allows industrial uses.

Other industrial areas located throughout the County, include the Agricultural Center Drive area, International Golf Parkway and US-1 N, Davis Park off Holmes Boulevard, Dobbs Road, St. Augustine Industrial Park off SR 207, Badger Industrial Park and Cumberland Industrial Park both CR 210 W.

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Flagler Estates Blvd Faver Dyk es Rd

BARTRAMPARK

HallowesCove

LittleFlorence

Cove FlorenceCove

PalmoCove

ColeeCove

SulphurSpringCove

Puerto RicoCove

SolanoCove

MurphysCoveWarner Cove

Sixte enmile C

reek

Deep C re ek

Toco

i

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re

e k

Sixmile Creek

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t

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k

Julington Creek

Durb in Creek

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ay

Gu ana Lake

Cap o C

reek

S tokes Creek

Tolomato R iver

Guana River

Casa Cola Creek

Rob inson Cr

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St. AugustineInletSan Sebastian River

Salt Run

Moultrie

Creek

M

oses Cre ek

Matanzas R

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MatanzasInlet

Pell icer Creek

A T L A N T I CO C E A N

Old Dixie HwyR

ay Rd

Corona Rd

Landru m Ln

Vare

lla A

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Northeast FloridaRegional Airportat St. Augustine

Davis Pond Blv d Cros

sw

a ter PkwyPalm Valley Rd

Preservation Tr

Pi ne Islan d Rd

Ensenada Dr N Loop Pkwy

S Lo o p P kwy

Pa l enc

ia V

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WGV Blvd

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Agricult u ra l Center D

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Do bbs RdCutoff

R 26E

R27E

R28E

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R30E

R31E

R26E

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R28E

R29E

R30E

R31E

T3S

T4S

T5S

T6S

T7S

T8S

T9S

T10S

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T6S

T7S

T8S

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DEEP CREEK

FORT MATANZAS NATIONAL MONUMENT

MOSES CREEK BUTLER BEACH PARK

ANASTASIA S

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DEEP CREEKSTATE FOREST

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MATANZASSTATE FOREST

St. Johns

Duval

Clay

Putnam

Flagler

Legend! ! Coastal Corridor Boundary

Development Areas

Railway Line

Interstate Freeway

Primary Road

Major Road

Minor Road

Local Road

Future Land UseResidential - A

Residential - B

Residential - C

Residential - D

Commercial

Community Commercial

Neighborhood Commercial

Rural Commercial

Intensive Commercial

Mixed Use District

Industrial

Airport District

Public

Parks and Open Space

DRI - Prior to 1990 Comp Plan

Cities and Towns

Rural Silviculture

R/S Owned By SJRWMD

Agriculture

Conservation

New Town

Town Center Mixed Use District

Rural Center District

DISCLAIMERThis map is for reference only. Data provided arederived from multiple sources with varying levels

of accuracy. The St. Johns County GIS Divisiondisclaims all responsibility for the accuracy or

completeness of the data shown hereon.

Comprehensive Plan: The purpose of the Comprehensive Plan is to effectively manage growth and developmentby designating areas of anticipated future development which satisfy demandwhere feasible, in a cost-efficient and environmentally acceptable manner.

Future Land Use: The Future Land Use Map is composed of land use designations grouped in a way that allows for sustainable developmental growth patterns. It is this aggregation ofland uses that effectively manages growth and development in the County by identifyingand designating areas of current development and anticipated future developments. Å

Land Use NotesData SourceFuture Land Use data is provided by the St. Johns County GIS Division and is derived from land parcels identified and approved by the St. Johns County Planning and Zoning Division.

0 1.5 30.75

Miles

ConservationAreas designated Conservation are approximate in natureand the exact boundaries shall be determined by environmentalsurvey and established pursuant to applicable regulatoryrequirements.

St. Johns CountyGrowth Management Department

4040 Lewis SpeedwaySt. Augustine, FL 32084

(904) 209-0579

2025 Comprehensive PlanSt. Johns County, Florida

Future Land UseMap 1

AMENDMENT DATES

Page 92: N FL Framework Plan report cover.psd

BUSINESS CLIMATE | 4–20

Baker Count y:Baker County has two main industrial parks, Enterprise East, a 251-acre industrial park on US 90 east of Macclenny and 5 minutes from I-10, and Enterprise West a 81-acre industrial park in Sanderson located within one mile of I-10. Enterprise East offers water and water treatment facilities from the City of Macclenny and Enterprise West offers rail from CSX Transportation.

Wal-Mart’s Food Distribution Center, employing approximately 800 employees, is located in Enterprise East. Wiremil, Inc., a manufacturer of pre-stressed steel cable for road and bridge construction, and Sanderson Pipe Corporation, a PVC pipe manufacturer, are located in Enterprise West.

Additional, areas potentially available for industrial related economic development opportunities include Woodstock and Midpoint. Woodstock is located near Sanderson at the intersection of US Hwy 90 & I-10. It is approved for up to 10 million square feet of industrial development. Midpoint is located east of Macclenny between US Hwy 90 and I-10. It is approved for 2.5 million square feet of industrial development.

Page 93: N FL Framework Plan report cover.psd

BUSINESS CLIMATE | 4–21

Cl ay Count y:Clay County’s desire to diversif y its economic base, especially industrial recruitment and retention, business development and entrepreneurship, is a fundamental goal well-documented in the County’s 2025 Comprehensive Plan. It is also the highest priority of the Board of County Commissioners. Clay streamlines and/or expedites the review and permitting process for specific targeted industries and businesses. A “fast track permitting” system specific to such Qualified Targeted Industry Businesses (industrial, warehouse, medical, office, research and development) which demonstrate job creation was adopted as an ordinance by the County Commission in 2012.

Supporting land uses include Industrial (IND), Industrial Park (IP), Mining (MI) and Military Reservation (MIL). These designations are designed to accommodate a full range of industrial activities as well as supporting office and/or commercial uses. The County, in partnership with developers and private land owners, has established zoning and entitlements for significant commercial, office, and industrial space. The County offers full access to land (State Highways 16, 17 and 23), air (Keystone Airpark and Clay County Port/Reynolds Park), water (1.1 miles of bulkhead and 13 piers at Clay County Port/Reynolds Park) and rail (CSX rail line).

Key projects with entitlements include the US 301 Corridor Industrial Park which contains a maximum development potential of 10,000,000 square feet of industrial warehousing space through 2025; as well as the 1,700 acre Reynolds Industrial Park with full multimodal access. This site provides infrastructure for a wide range of activities including aviation technologies, pipe manufacturing and distribution, as well as seafood processing.

LakeBedford

Santa FeLake

SwanLake

GeorgesLake

StJohnsR

iver

St JohnsR

iver

Buckman Bridge

Ala

chua

Cou

nty

Argyle Forest Blvd

4

56

39

44

49

48

38

37

37

37

42

7

9

4 2

1

35

2

9

7

64

7

5

5

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6

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64

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31 33

28

27

52

35

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12

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37

4

9

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1

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3

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9 11

CR 739BSandridge Rd

Green CoveSprings

Penney Farms

KeystoneHeights

19

4 3

31

302527

2423

252627

Gold HeadBranch

StatePark

Camp BlandingJoint Training Facility

and Wildlife Management Area

6

97 1112

22 23

26

35

Lon

g B

ay R

d

Pine

Av

US

Hw

y 30

1

CR

207

CR 218

CR 218

SR 21

SR 2

1

Lou

ie C

arte

r R

d

SR 16

Sharron Rd

Saunders Rd

Spri

ngba

nk R

d

SR 16

CR 220

Orange ParkKingsley Av

8

US

17

US 17

SR 16

8

Old Jennings Rd

24

Oakleaf Plantation Pkwy

Oaks

Blvd 5Plantation

OakleafPkw

yVillage

Chesw

ick Oaks A

v

27 39

38

2423

12

41

Nol

an R

d

CR 2258

SR 230

SR 100

CR 214

CR

315

C

20 CR 315

56

18

20

BelmoreState Forest

26

Satsuma Tract8

JenningsState Forest

Bayard Conservation Area

CR 315 Ext

Fork

11

35

North

Creek

Black

3 2

12

4

1

Creek

Black

Fork

South

Thu

nder

Rd

32

28

22

1517 16

31

Bellamy Rd

Sungarden Rd

Hog

arth

Rd

29

36

30

5

37

8

RavinesConservation

Area

Black

Creek

21 19

30

31 32

5

36 31

23

29

2019

34

29

9

19

18

2

35 36

19

18

6

31

28

8 9 11

15

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4

46

24

River

Peters

Creek

Governors

Cree

k

LakeBrooklyn Smith

Lake13

White SandsLake

MagnoliaLake

CrystalLake

Lake Geneva

3815

EW 1

141516

R 23 E R 24 E

18

CX

S Transportation

3

Veterans Park

7

18

3

32

T 4 S

T 5 S

T 6 S

T 7 S

T 8 S

T 9 S

R 25 E R 26 E

R 24 E

R 27 ER 26 E

Bra

nan

Fiel

d R

d

20

First Coast O

uter Beltway

First Coast Outer Beltway

33 34 35 36

4 23 1

78

27

33 34

2

34

18

6

CR

. 218

7

Moody Av

Docto

rs L

ake D

r

Col

lege

Dr

Kni

ght B

oxx

Rd

CR

209

38

3133

2930

2423

SR 16

7

CR 218

7 8 9 10

18 17 16 14

Carter Spencer Rd

33

NS

3

CSX Transportation

Russell Rd

R 25 E

R 23 E

Blanding Blvd

Doctors

Lake

29

Hen

ley

Rd

SR 21

LakeAsbury

4

Tynes Blvd

CR 220

5

St

Johns

Lowry Lake

KingsleyLake

CR

739

40CR 209

447

1

43

CSX

Tra

nspo

rtat

ion

EW 4EW 6B

CR. 218 Ext.

35

New 6A

New 2

NS 1

NS

2

T 4 S

T 5 S

T 6 S

T 7 S

T 8 S

T 9 S R 23 E

R 24 E

R 25 E R 26 E R 27 E

R 23 E R 24 E R 25 E R 26 E

2025 Future Land Use Map

0 1 2 3 4 5 6

Miles

4

kFLU Policy 1.3.1.l (1)

k Ord. 2007-53 - Max 70 DU

k1 DU/5-acre w/ points & clustering only

kOrd. 08-15 (Tract 1,2,5,6) - Max 4,682,900 GFA

Tract 5 Tract 1Industrial

Tract 2

Tract 6

Agriculture

k

Branan FieldFLU Policy 4.11

Map Adoption: Ord. 09-41, Oct. 27, 2009

SundewFLU Policy 1.3.1

k

This information is provided as a visual representationonly and is not intended to be used as legal or offIcialrepresentation of legal boundaries. The Clay County

Board of County Commissioners assumes noresponsibility associated with its use.

Created by: GIS DepartmentMap Prepared: April 4, 2012

Amendment Revised:

EAR-05Frank Youngk

EAR 01, Ord. 09-42, Oct 27, 2009 EAR 02, Ord. 09-43, Oct 27, 2009 EAR 03, Ord. 09-44, Oct 27, 2009 EAR 04, Ord. 09-45, Oct 27, 2009 SSA 09-3, Ord. 09-64, Dec. 08, 2009EAR 05, Ord. 10-31, Aug. 24, 2009 SSA 10-1 Ord. 10-07, May 5, 2010SSA 10-2 Ord. 10-08, May 5, 2010SSA 10-3 Ord. 10-09, May 5, 2010SSA 10-4 Ord. 10-10, May 5, 2010SSA 10-5 Ord. 10-14, May 25, 2010CYL 10-1 Ord. 10-32, Aug. 24, 2010CYL 10-1 Ord. 10-33, Aug. 24, 2010CYL 10-1 Ord. 10-36, Aug. 24, 2010CYL 10-1 Ord. 10-39, Aug. 24, 2010CPA 10-2 Ord. 11-7, March 22, 2011SSA 11-1 Ord. 11-23, July 26, 2011

Misc. Map Legend

County Boundary

Township Lines

Section Lines

Open Water

Master Plan Boundaries

Power Line

Municipal

Conservation/Greenways Overlay

PCN

Greenbelt

Village Boundary

Lake Asbury Greenways

Conservation

Conservation Easement

District Parks

Proposed Future RoadsRailroad

Transportation

Principal ArterialMinor ArterialMajor Collector

Minor CollectorLocal Street

First Coast Outer Beltway

Peter's Creek Business Park Improvements

Lake Asbury LegendLA RCLA RF

LA RRSVLA MPCLA RPLA AC

LA SOL

LA COM

LA VCLA IVC

Branan Field LegendBF EXBF RSBF MPCBF TNDBF CCBF RACBF ACBF INSTBF MIX

Future Land Use LegendAGARRRRRSVRF

PCMIX

RP

BP

INDMILMINCOM

IP

UC

CO

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Na ss au Count y:Nassau has adopted a new Economic Development Element within their 2030 Comprehensive Plan for the purpose of creating and implementing a unified economic development strateg y for the County. This strateg y is specifically “focused on the retention, expansion, and relocation of high wage jobs and targeted businesses” to improve the County’s quality of life. Additionally, the strateg y is designed to encourage the elimination of any cumbersome and unnecessary regulations while maximizing the utilization of existing infrastructure and public services. The County has also identified six targeted industrial and commercial “economic development opportunity areas (EDOAs)” as ideal locations for new and expanding industries. EDOAs are located on sites containing a minimum of 100 developable acres; with good access to major highways, rail lines or airports, with preference given to sites with multimodal access. Two of the six EDOAs contain a commercial element, while the other areas are primarily industrial. The County’s new Industrial Park (IP) district has a provision for expedited permitting , but any job-creating project can qualif y for such permitting.

P utna m Count y:The Putnam County Business Park, a “Class A” shovel ready site is but one of the many developed properties available in the area. The park has a wide variety of parcels sizes available, and is adjacent to the City of Palatka’s Kay Larkin Airport Industrial Park .

Putnam County offers Industrial Development Revenue Bonds (IDBs), a federal interest rate subsidy managed at the local and state levels. IDB’s function like loans that afford private manufacturing companies access to low tax-exempt interest rates. The Development Authority can also buy land, construct buildings and sell or lease them to private parties in order to promote economic development.

Additionally, the Putnam County Board of County Commissioner created an economic development fund to induce business development within the County. For select high value projects, both the Putnam County Board of County Commissioners and the City of Palatka City Commissioners have adopted ordinances creating an Economic Development Fund which can be used to induce business development within their jurisdictions.

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ECONOMIC DEVELOPMENT ELEMENTOPPORTUNITY AREAS

EconomicDevelopment

ED-1Economic Development Opportunity Area

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FOREIGN TRADE ZONE

The FTZ program was created by the US Government to increase global competitiveness for US based companies. For the over 270 sites nationwide, being within a FTZ reduces costs and allows for deferral, and reduction or elimination of federal duties/excise taxes. North Florida’s FTZ #64 was granted authority in 1970. Oversight and compliance duties of FTZ #64 are conducted by JAXPORT. The service area extends 60 miles from the Duval County border, with one magnet site identified in each of the surrounding counties (Duval, Clay, Nassau, Baker, Columbia, Union, Bradford and St. Johns). The reduced costs of doing business within the FTZ include:

No duty is paid on merchandise to be consumed domestically until it leaves the FTZ (deferment)

No duty is paid on re-exported merchandise

No duty of defective merchandise that will not be sold

No duty from products being stored, altered, manufactured, or changed within the FTZ

Lowest duties for manufactured finished goods

FTZ M agnet SitesThere are multiple potential FTZ magnet sites currently identified throughout Northeast Florida including:

Duval County – Cecil Commerce Center

Clay County – Reynolds Park

Nassau County – TerraPointe (Crawford Diamond Industrial Park)

Baker County – Woodstock Industrial Park

Columbia County – Plum Creek

Cecil Commerce Center was the first in the state of Florida and the 31st in the nation to receive its designation as a magnet site on May 6, 2011. Proposed sites in Putnam and St. Johns counties have not yet been identified.

Presented by:

Lisa DiazManager, Foreign Trade Zone 064Trade Development and Marketing, JAXPORT

Introduction to

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Source: JAXPORT, 2012

7Jacksonville Business Journal, Cecil Commerce Center Enters Trade Zone, May 11, 2011

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Cecil Commerce Center in Duval CountyThe 4,474 acre Cecil Commerce Center was formerly the Naval Air Station Cecil Field until 1993. At the time of its closure the Mayor of Jacksonville formed the Cecil Field Development Commission, which was succeeded by the Jacksonville Economic Development Commission. The NAS Cecil Field Final Base Reuse Plan and Operations and Business Plan were approved by Jacksonville City Council in 1999. Hillwood became the Master Developer in 2009 and is branding the project with its premier Alliance brand.

Cecil Commerce Center is a public-private project between Hillwood and the City of Jacksonville. Hillwood’s Alliance projects are multimodal, large scale, long term, public-private projects. At build out the Cecil Commerce Center is expected to be almost 34 million square feet of manufacturing and assembly; warehousing and distribution; and some supporting mixed uses.

Source: Alliance Florida

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Crawford Diamond Megasite in Nassau County

Nassau County’s first true industrial park, this new-to-market location (approximately 16 miles northwest of Jacksonville) boasts rare dual Class 1 rail frontage on-site, providing access to both CSX and Norfolk Southern main rail lines. It is within about 17 miles of major north-south and east-west Interstate highways I-95 and I-10, on the four-lane, median divided U.S. Highway 301 (currently under construction). This 1,800-acre, flexible megasite, with extensive logistical solutions, can accommodate a broad range of large-scale industrial projects within an eight-hour drive of 45 million people. The megasite has been approved for up to 10.5 million square feet of industrial land use, which can include manufacturing , assembly, warehousing and distribution, and be used as an intermodal inland port or logistics center. The site is also within 20 miles of two deep-water ports and four marine terminals and only 12 miles from Jacksonville International Airport. The site is currently being certified by McCallum Sweeney..

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Woodstock Industrial Site in Baker CountyThe Woodstock potential inland port magnet site is located in Baker County adjacent to the intersection of I-10 and US 90 at exit 324. The site is approximately 1,500 acres and it is anticipated that 950 - 1,000 upland acres are available for development.

The site is currently zoned agricultural and is expected to be modified based on the final development. Future development is expected to include up to 10 million square feet of industrial uses. This site is positioned to take advantage of 1.5 miles of CSX track frontage.

This site is within the North Central Rural Area of Critical Economic Concern (RACEC), which includes Baker County and 13 other Florida Counties. The North Central RACEC is one of three RACEC areas in the state of Florida. The other two are the Northwest RACEC including eight counties and the South Central RACEC including six counties.

The RACEC designation allows businesses choosing to locate within the zone to qualif y for tax credits and incentives such as:

Qualified Target Industry Tax Refund Program

Quick Response Training Program

Brownfield redevelopment bonus refund

Rural job tax credit program

Certain requirement waivers, such as DRI requirements (raises DRI threshold to 800 acres)

Just outside of Macclenny in Baker County is the current home of the 900,000 square foot Walmart Distribution Center. The location for the proposed Woodstock Industrial Site is along US 90 west of Macclenny. According to Baker County officials, capacity is available on US 90 and I-10 for the anticipated traffic variance due to the new development.

Source: Grubb & Ellis, Phoenix Realty Gr

Source: Grubb & Ellis, Phoenix Realty Group

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Plum Creek in Columbia CountyThe North Florida Intermodal Park inland port magnet site is located in Columbia County. The site is part of a 2,600 acre tract of land owned by Plum Creek . Designated as a RACEC, the Columbia County Commissioners adopted a comprehensive plan amendment to designate the tract as a mixed use district. Legislation sponsored by Representative Debbie Boyd and Senator Charlie Dean established the site as a Rural Enterprise Zone8. The Governor’s Office of Tourism, Trade, and Economic Development (OTTED) that administers the program currently oversees the activities of the 59 sites statewide, 30 of which are Rural Enterprise Zones9. This designation makes it possible for business choosing to locate within the zone to qualif y for tax credits and incentives.

Source: Plum Creek

8Grubb&Ellis, Pheonix Realty Group9www.floridaenterprisezones.com/

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Clay County Port / Reynolds ParkLocated 25 miles south of Jacksonville, the 1,700 acre complex is located on the St. Johns River in Green Cove Springs. Formerly known as Lee Field Naval Air Station, this was once the site of one of the largest US aviation training facilities during World War II. The former military marine terminal was also used to mothball the fleet of WWII ships from 1946 until being decommissioned in 196010. Reynolds Park was established in 1965 by J. Louis Reynolds, former chairman of Reynolds Metal Company. In 1984 the City of Green Cove annexed the former naval base to further its growth and development.

Reynolds Park is now the home of the North Florida Railway Museum, Military Museum of North Florida, National Gypsum Company, MOBRO Marine, the Great Lakes Dredge and Dock Company, Southeastern Sandblasting and Painting , Inc., and Holland Marine. This site has convenient access to air, rail and roadway.

Source: Military Museum of North Florida

10www.rpyc/info/about.html

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ECONOMIC INCENTIVES

Similar to the state’s economic incentives, North Florida’s incentives also consists of various types, such as cash and grants; tax credits and refunds; workforce incentives and enterprise zones. Depending upon the specific incentive used, businesses may need to meet factors, such as location (i.e., economic development target areas, federally designated empowerment zone, publicly owned industrial areas, or Foreign Trade Zones, for example); or economic impact (i.e., number/type of jobs, for example). Below is a list of incentive programs managed at the local level, which may be offered by North Florida’s communities:

Tax Increment Economic Development Grant

Empowerment Zone – Federal Income Tax Credit

Targeted Economic Development Area Special Funds (Duval only)

Development Site Land Cost Write Down

Foreign Trade Zone (FTZ)

Industrial Development Revenue Bonds (IDBs)

Recruiting , Screening , Placement Assistance (as-of-right)

A recently completed industry implementation plan, called Innovate Northeast Florida Economic Development Strategic Plan; Targeting Jobs and Talent for the Future11, encourages the promotion of Advanced Transportation (including aviation, rail and port logistics and distribution centers, supply chain management and information technolog y) and a Supply Chain Management/IT sub-cluster. The plan suggests that the region demonstrate why it a good place to do business before offering incentives to companies considering the area. Additional recommended actions in regard to business climate include:

Ensure that the entire region has competitive incentives; strongly advocate for improving the competitiveness of the State of Florida for economic development

Streamline local government processes to save businesses time in their startup, expansions and relocations

Dramatically increase economic development specific public relations nationally and internationally

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Create awareness of the region’s assets via social media

Rally leadership and resources to deepen Port of Jacksonville and resolve the mile point issue

Promote infrastructure and spec building development in suburban and rural North Florida counties

There are, however, taxation structures in Florida that may discourage the types of capital-intensive investments associated with high-end manufacturing and warehousing/distribution locations. These include:

Sales taxes on manufacturing equipment discourage capital investment in this key strategic industry but progress is being made to reduce or eliminate this burden and make Florida more competitive

Ad valorem tax depreciation schedules need to be faster on the capital equipment used by manufacturers

Corporate income tax apportionment needs to be shifted to a single factor (sales based in Florida) from the current three (sales, payroll, and property) to make Florida more competitive with other states

11Prepared for the Northeast Florida Regional Council and JAXUSA Partnership (economic arm of the JAX Chamber), April 19, 2012

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SUMMARY AND RECOMMENDATIONSNorth Florida’s economic vitality depends upon the continued success and growth of our regional logistics companies and the environment in which they operate. The region’s leaders and stakeholders must develop and maintain partnerships and leverage the strength of North Florida’s existing freight, logistics and intermodal environment. Similar to other successful ports and their surrounding regions, North Florida must foster a business climate that emphasizes flexible, continuing long range planning and focuses on infrastructure improvements that are tied to increased efficiencies.

Related to business climate, the following focus areas are recommended.

High Performance R esultsThere have been significant infrastructure upgrades (planned, programmed and completed) on the region’s freight related transportation systems in recent years. These upgrades include increased interstate capacity and improved system to system connections; roadway modifications to better connect major corridors and freight hubs; updated port terminal infrastructure; and key intermodal container infrastructure (ICTF).

Due to the current state of North Florida’s infrastructure system, with its relatively high level of service and existing capacity, ongoing and future investments in our region’s infrastructure will potentially yield higher benefit-cost ratios than compared to other regions. Since North Florida’s needs could be considered as non-critical given the outstanding job we have done on staying ahead of the growth and demand curves, the region’s challenge will be to NOT let this condition penalize us for competing for federal and state funding. Instead, the North Florida region will need to demonstrate the positive return on investment (ROI) from projects in our region compared with regions that are not meeting their infrastructure needs.

Therefore, as North Florida continues to plan for future infrastructure investments, the region should incorporate ROI assessments into its long range planning processes. In fact, North Florida stakeholders, through planning efforts such as the North Florida TPO Long Range Transportation Plan (LRTP), are beginning to establish benefit-cost analysis tools to perform analyses of projects and compare affordable solutions to anticipated transportation needs. ROI assessments are also in line with recent federal transportation legislation (MAP-21) requiring states and metropolitan areas to establish outcome-driven performance measures.

Summary 2009

PLANNING TRANSPORTATION FOR THE NEXT GENERATION

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Enh anced Industry SupportThere is increasing stakeholder recognition and support for strengthening North Florida’s position as a freight, logistics and intermodal hub. Throughout the development of this Framework Plan, a core group of industry representatives provided input into process. This group, the Logistics Advisory Group (LAG) includes reps from major logistics companies, transportation agencies, community leaders and transportation specialist that all agree that an integrated, intermodal transportation system is critical for our region to remain competitive in the global freight market.

Moving forward, it will be critical that the industry-led Executive Committee of the LAG meet regularly to help implement the Plan’s recommended focus areas. The Executive Committee consists of key CEO/COO/CFO level executives from the industry. Additionally, to help maintain momentum for creating an improved freight, logistics and intermodal environment within the region, the LAG should host quarterly industry forums. Regional incentives would be a good topic for the first forum in first quarter 2013, as this topic has generated strong interest among stakeholders during the Plan’s development.

Integrating Freight and Logistics into R egional Decision-M aking

Currently, there are several regional transportation initiatives that include a focus on freight, logistics and intermodal efforts within North Florida. As these initiatives progress, it will be critical that the region’s freight stakeholders provide support to these initiatives by participating on their committees and ensuring a strong , engaged presence “at the table” of these initiatives. These initiatives include the following:

Regional Transportation Study Commission (RTSC)

North Florida TPO LRTP ( January 2013 - November 2014)

A regional transportation focused business alliance, distinct from other regional transportation planning and implementing entities such as authorities or commissions; and potentially driven via the private sector or some form of public/private partnership

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Fostering R egional Economic Competitiveness

A world-class transportation system plays a vital role in supporting regional economic competitiveness. Therefore, North Florida stakeholders should also support recommendations from a recently completed industry plan, called Innovate Northeast Florida: Economic Development Strategic Plan ( JAXUSA 2012)12. This plan sets a vision for key core target industries as the region’s best prospects for achieving long-term sustainable economic growth. W hile all industries rely on transportation systems, the Advanced Manufacturing , Aviation, and Logistics target industries identified will require a robust and multi-modal transportation system to be competitive. These industries include rail and port logistics and distribution centers, aviation, clean fuels, supply chain management and information technolog y, as well as power storage, propulsion, and tracking device and security systems.

Recommended actions from the Innovate Northeast Florida Plan, in regard to business climate, include:

Ensure that the entire region has competitive incentives

Strongly advocate for improving the competitiveness of the State of Florida for economic development

Streamline local government processes to save businesses time in their startup, expansions and relocations

Dramatically increase economic development specific public relations nationally and internationally

Create awareness of the region’s assets via social media

Rally leadership and resources to deepen Port of Jacksonville and resolve the mile point issue

Promote infrastructure and spec building development in suburban and rural North Florida counties

12Innovate Northeast Florida Economic Development Strategic Plan; Targeting Jobs and Talent for the Future, prepared for the Northeast Florida Regional Council and JAXUSA Partnership (economic arm of the JAX Chamber), April 19, 2012

Innovate Northeast Florida Recommendations

Enhanced Industry Education Programs

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Superior Industry Educ ation Progra msNorth Florida offers several educational programs that are available through the region’s universities, colleges and high schools. The University of North Florida offers flagship programs, including certifications in Transportation and Logistics, Supply Chain Management/Logistics, and Freight Agent/Brokering. Additionally, workforce training is offered through various agencies.

To create a more competitive environment, North Florida’s educational professionals and other stakeholders need to leverage the strengths of the region’s existing educational programs and tie them to the region’s existing , developing and desired trade market niches.


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