Nonstop Services, Inc. Nonstop Services, Inc. Expansion StudyExpansion Study

GIS 200 Term ProjectGIS 200 Term Project

NVCCNVCC

ContentsContents

SummarySummary

Goal & ObjectivesGoal & Objectives

DataData

AnalysisAnalysis

ConclusionConclusion

Goal & ObjectivesGoal & Objectives

GoalGoal The goal of this study is to determine the best The goal of this study is to determine the best

area to profitably locate a second freight area to profitably locate a second freight facility facility

ObjectivesObjectives Interview the owner of Nonstop to identify the Interview the owner of Nonstop to identify the

expansion requirementsexpansion requirements Collect supporting data to establish the Collect supporting data to establish the

criteria to use to determine the site of the new criteria to use to determine the site of the new facilityfacility

DataData

Analyzed Nonstop’s database of dispatched Analyzed Nonstop’s database of dispatched trucks to determine what the volume of current trucks to determine what the volume of current interstate traffic is on the major corridorsinterstate traffic is on the major corridors

Used Federal Aviation Administration (FAA) data Used Federal Aviation Administration (FAA) data on freight traffic by airport to narrow down on freight traffic by airport to narrow down potential citiespotential cities

Collected data from the DOT and the United Collected data from the DOT and the United States Census Bureau Commodity Flow Survey States Census Bureau Commodity Flow Survey

Analysis-1Analysis-1

Requirements/AssumptionsRequirements/Assumptions A major airport is required as approximately A major airport is required as approximately

50 percent of sales are generated by local 50 percent of sales are generated by local P&D (pick-up and delivery) of freight P&D (pick-up and delivery) of freight

Drivers are limited by DOT to 11 hours of Drivers are limited by DOT to 11 hours of driving followed by 10 hours of rest driving followed by 10 hours of rest

Offering an extended corridor within the 11 Offering an extended corridor within the 11 hours with a hours with a singlesingle driver who could deliver driver who could deliver “hot” freight, Nonstop would realize greater “hot” freight, Nonstop would realize greater sales and operational savings sales and operational savings

Analysis-2Analysis-2

Map 1: Site Selection Delimited by Drive Map 1: Site Selection Delimited by Drive RadiusRadius The main interstate corridors radiating out from the The main interstate corridors radiating out from the

primary facility in Raleigh, NC and into the bufferprimary facility in Raleigh, NC and into the buffer The buffer represents the greatest and least distance The buffer represents the greatest and least distance

an average driver can cover in 11 hoursan average driver can cover in 11 hours Cities shown are those with populations greater than Cities shown are those with populations greater than

100,000 within the interstate corridors and in and 100,000 within the interstate corridors and in and beyond the bufferbeyond the buffer

Nonstop management believed that Ohio was a likely Nonstop management believed that Ohio was a likely site, so Columbus was included because of its central site, so Columbus was included because of its central location and home to a large LTL hublocation and home to a large LTL hub

Map 1: Site Map 1: Site SelectionSelection

Analysis-3Analysis-3

Map 2: Major Airports by Cargo VolumeMap 2: Major Airports by Cargo Volume Using graduated symbols and cargo tonnage, this Using graduated symbols and cargo tonnage, this

map shows the airports in and beyond the buffermap shows the airports in and beyond the buffer Two airports that stand out are Indianapolis (IND) and Two airports that stand out are Indianapolis (IND) and

Louisville (SDF)Louisville (SDF) A search for corporate freight hubs yielded FedEx A search for corporate freight hubs yielded FedEx

regional at IND and UPS at SDFregional at IND and UPS at SDF The huge tonnage numbers do not represent actual The huge tonnage numbers do not represent actual

local P&Dlocal P&D The vast majority of freight is sorted and reloaded The vast majority of freight is sorted and reloaded

onto another plane onto another plane

Map 2: Major Map 2: Major AirportsAirports

Analysis-4Analysis-4

Map 3: Amount of Freight by Weight Originating Map 3: Amount of Freight by Weight Originating from North Carolinafrom North Carolina

A choropleth map of states in and beyond the buffer displayed A choropleth map of states in and beyond the buffer displayed by the tonnage of freight terminating in the respective state that by the tonnage of freight terminating in the respective state that originated from North Carolinaoriginated from North Carolina

The states and airports beyond the buffer are included to help The states and airports beyond the buffer are included to help indicate the amount of freight activity in the region that would be indicate the amount of freight activity in the region that would be encompassed by the extended eleven-hour corridorencompassed by the extended eleven-hour corridor

Note: The data are a summation of every location in North Note: The data are a summation of every location in North CarolinaCarolina

A shipment from the western mountains of North Carolina going A shipment from the western mountains of North Carolina going to Atlanta isn’t financially or logistically feasible from Raleighto Atlanta isn’t financially or logistically feasible from Raleigh

This data was obtained from the Bureau of Transportation This data was obtained from the Bureau of Transportation Statistics (USDOT) and United States Census Bureau 2002 Statistics (USDOT) and United States Census Bureau 2002 Commodity Flow Survey’s individual state dataCommodity Flow Survey’s individual state data

Map 3: Amount of Freight by Map 3: Amount of Freight by WeightWeight

Map 4: Summation of DataMap 4: Summation of Data

Conclusion-1Conclusion-1

There are nine potential sites lying just inside the buffer There are nine potential sites lying just inside the buffer and served by interstatesand served by interstates

Eight within the bufferEight within the buffer One representative of Nonstop’s assumption about OhioOne representative of Nonstop’s assumption about Ohio

There are strengths in the three areasThere are strengths in the three areas A strong concentration of freight moving into the NortheastA strong concentration of freight moving into the Northeast A heavy but broad area in the MidwestA heavy but broad area in the Midwest A strong concentration in the Georgia and Alabama area with a A strong concentration in the Georgia and Alabama area with a

large amount of freight going to the extended corridor destination large amount of freight going to the extended corridor destination of Texas of Texas

Conclusion-2Conclusion-2A review of Nonstop’s data indicates the volume of current traffic through A review of Nonstop’s data indicates the volume of current traffic through these corridorsthese corridors

27 percent on I-95 North27 percent on I-95 North 20 percent on I-77 North before splitting in West Virginia (where 11 percent 20 percent on I-77 North before splitting in West Virginia (where 11 percent

continue on to northern Ohio and 9 percent head west towards Chicago)continue on to northern Ohio and 9 percent head west towards Chicago) 22 percent head southwest on I-8522 percent head southwest on I-85

This analysis indicates that southwest Atlanta, central or western Ohio, and This analysis indicates that southwest Atlanta, central or western Ohio, and the warehousing areas south of Newark Airport (Elizabeth, NJ) would fall the warehousing areas south of Newark Airport (Elizabeth, NJ) would fall within the criteria for selection of a secondary sitewithin the criteria for selection of a secondary siteTraffic and toll considerations are a downside to the I-95 North corridorTraffic and toll considerations are a downside to the I-95 North corridorThe currently reduced level of manufacturing in the Midwest is a negative The currently reduced level of manufacturing in the Midwest is a negative factorfactorThe conclusion is that southwest Atlanta, with all its strong indicators and The conclusion is that southwest Atlanta, with all its strong indicators and the potential amount of freight going to Texas in the extended corridor is the the potential amount of freight going to Texas in the extended corridor is the current best solution to site their second location current best solution to site their second location

SummarySummary

Nonstop Services, Inc. (“Nonstop”) is a local market Nonstop Services, Inc. (“Nonstop”) is a local market expedited freight companyexpedited freight companyThe company is considering expansion to a secondary The company is considering expansion to a secondary location that meets Nonstop and Department of location that meets Nonstop and Department of Transportation (DOT) requirementsTransportation (DOT) requirementsThe results of the study depict areas with the highest The results of the study depict areas with the highest economic potential, including:economic potential, including:

Southwest Atlanta metroSouthwest Atlanta metro The Interstate 270 area of south Columbus, OhioThe Interstate 270 area of south Columbus, Ohio Elizabeth, New JerseyElizabeth, New Jersey

The recommended solution is Atlanta: it has slightly The recommended solution is Atlanta: it has slightly greater long term potential due to strong levels of freight greater long term potential due to strong levels of freight activity in the current and expanded corridor activity in the current and expanded corridor