We rely on one industry every day – South Carolina’s transportation, distribution, and logistics (TDL) sector. Ships dock at the port, bringing goods. Trucks, railways, airplanes and employees move imported and manufactured products across the state. Local centers warehouse and distribute it. All of these TDL functions provide ready access to a wide range of products available at retailers.
Shipping traffic at the Port of Charleston is increasing – at the rate of 18 percent in the last two years, according to the SC State Ports Authority (SCSPA). Along with increased traffic patterns, other global changes are redirecting the pathway of South Carolina’s TDL industry. “The shipping industry is building bigger and bigger ships, Panama [Canal] is completing a multi-billion dollar expansion project to accommodate them, the Southeast’s population is growing, and the region’s exports are booming,” says Jim Newsome, SCSPA’s president and CEO. These changes make it imperative that the TDL industry strengthens statewide or be left behind by neighboring states.
SCSPA is one of three state government agencies joining 20 private companies to push transportation infrastructure development statewide. Last November, New Carolina announced the formation of the TDL Council, which also includes the SC Department of Commerce and the SC Department of Transportation and private companies: Alliance Consulting Engineers, ATS Logistics, BMW, Columbia Metropolitan Airport, Continental Tire, CSX, Duke Energy South Carolina, Greenville-Spartanburg Airport, Johnson Development Associates, MeadWestvaco Corporation, Myrtle Beach Airport, Norfolk Southern Corporation, Nucor, Performance Team, QVC Florence, SC Power Team, Southeastern Freight Lines, Superior Transportation, Universal Trade Solutions, and UTi.
The TDL Council is bringing together all organizations - whether public or private - to solidify the TDL industry statewide, creating jobs, attracting investment and coordinating any activities that will strengthen transportation throughout the state, whether that means adding and improving roads or ports, building distribution centers, enhancing rail access, or increasing air freight capability.
“The Council is a great example of public-private partnership,” says George Fletcher, executive director of New Carolina, which formed the TDL cluster in 2008 when private industry feared the state was losing competitiveness against other states with strong infrastructures and ports. “The public sector is doing the study, and the private sector is helping market it, sell it to the legislature, and develop strategies around it. I’m really proud of what the group’s doing.”
Private companies recognize South Carolina’s ability to win the game requires consolidating private resources with public agencies. Winning the game means more jobs, more investment, and a higher quality of life. The TDL sector is vital to the state’s economy by linking manufacturers, importers, exporters, retailers and consumers through a network of railways, airports, interstates, highways, and seaports. South Carolina’s TDL industry encompasses about 2,500 businesses and 40,000 employees who draw $1.6 billion annually in wages, according to the U.S. Bureau of Labor Statistics.
Transportation executives feel it’s the right time to coordinate through the formation of the collaborative TDL Council. “Transportation, distribution, and logistics are the infrastructure of industry in our state,” says Deepal Eliatamby, TDL Council chair and president of Alliance Consulting Engineers. “By coupling the efforts of private sector leaders and public agencies, I am confident we can identify and prioritize challenges that, when solved, will give South Carolina a competitive advantage.”
“It is exciting to work with a diverse group that spans the public and private sectors to take a multimodal approach to improve South Carolina’s freight transportation infrastructure. These investments will serve existing South Carolina companies and make the state far more attractive to TDL-related industries in the years ahead. Norfolk Southern is proud to be a part of this effort,” says Brian Gwin of Norfolk Southern Corporation.
First Initiative: Craft a Plan
The Council’s first action is to participate in the creation of a 20-year intermodal transportation plan. The SC Department of Transportation (SCDOT), which produces a plan every five years, has for the first time the opportunity to pull data, ideas, and encouragement from public and private Council members.
“We consider the TDL Council a partner group. For the first time, we [SCDOT] will be actively engaged with SC Commerce and SC Ports Authority in creating this plan, and private companies will collaboratively participate in the process,” says SC Transportation Secretary Bob St. Onge. “We will not be looking at just roads and bridges.” St. Onge says he hopes to receive advice from TDL members and other partner groups when the initial plan is drafted by an outside consulting firm. The Council will kick off the two-year plan development process at the 2012 TDL Summit.
“The most exciting aspect is the opportunity South Carolina is preparing itself for as the Panama Canal expands,” says SC Commerce Secretary Bobby Hitt. “This collaborative of the main players…will help create more jobs in the TDL space and make South Carolina competitive for manufacturing as well.”