Working with the Public Sector
By Christopher Steele, President, CWS Consulting Group LLC
Several months ago, I wrote about how those of us in private industry could effectively involve the public sector in logistics development. For the most part, I was speaking about incentives, credits, and more active partnerships. As with any relationship, sometimes you need to sit down and talk about each others’ needs – In this case, a discussion that balances corporate needs and other public goals. The private and public sectors must understand the nature of their partnership, and be able to inform and to accommodate each others’ needs.
The freight logistics world is dynamic. Globalization, fuel costs, consumer tastes, environmental pressures, aging infrastructure and land use patterns are all changing how we get goods from the point of production to our family rooms and dinner tables. Public agencies need to understand these issues and how they drive companies to make location decisions for transportation, distribution, logistics, and manufacturing functions. They also need to understand how their own communities can best create an environment conducive to these activities, supporting a competitive freight distribution system.
At the same time, shippers, distributors, manufacturers, and the real estate developers who specialize in freight development also must understand and participate in the community discussion about the balance between economic development and other community concerns.
Understanding manufacturers’, distributors,’ and shippers’ economic, transportation and land use must allow communities to better attract these lucrative businesses to their communities. Knowing these businesses’ needs also provides insight on how to direct local and regional land use and transportation planning to facilitate business attraction opportunities while enhancing local quality of life and economic vitality.
Communities struggle with adequately understanding the needs of freight-based businesses. The public sector might or might not understand how corporations make location and development decisions, and they may also not fully understand the benefits and drawbacks of having these uses in their community.
On top of this, government agencies are being asked to do more with less. Funding for “non-essential” government activity took a major hit in 2008. For example, economic development agencies – both public and semi-public – are cutting their staff and their budgets at exactly the moment when their role in business advocacy, attraction and retention is most required.
Working togetherCommunities should understand that providing for freight-based industry does not mean more trucks on the road, more air pollution, or losing wetlands. Indeed, a smart real estate development program that embraces the technologies which will be most in demand in the next wave will include such items as brownfield redevelopment, multi-modal transportation, and LEED or other green development techniques.
By coming together with community leaders, developers and their corporate tenants can help to establish policies and land use plans which explicitly position the community for a prosperous future for its residents and which also provides for improvements in environmental preservation and quality of life. Discussion and mutual understanding are the keys to success for both parties.
Corporations need to be able to show how fuel price volatility, global shipping patterns, freight loadings, multi-modality, and other key logistics trends push corporate profitability - along with investment and employment in the community. They also need to show how being able to nimbly respond to green, fuel, economic and other pressures can also address community needs for environmental protection and smart land use.
This discussion also must include a frank discussion of how land use and transportation decisions in one municipality of jurisdiction can impact the opportunities (or liabilities) of another just across the town line! Regionalism and an understanding of how networks work – both transportation and community – are fundamental to success. While some communities may fear that such a discussion may force them to sacrifice some local control, such actions must be coordinated across communities, shippers, carriers, and developers to be meaningful in any significant way. The regional benefits gained will, eventually, bring positive benefits to each partner community.
Making It Fit Together
Communities and developers can meet common goals only by understanding each others’ goals. Once the community’s needs and resources are aligned with those of the corporate shipping and logistics communities, both can work towards the common cause of a sustainable, successful partnership.
It’s time to take a look at overall market trends around the country and see how communities are doing. We’re looking for the next wave, and hoping that it’ll be a nice, tropical one when it hits!
In This Issue
News, Trends & Analysis
New Items
The outlook is improving
Supply Chain
Federal chassis rules: Are you ready?
Working with the public sector
How will your company deal with Sarbanes-Oxley
Features
Gateway at a glance –Southern California
Ports & infrastructure
Nowhere near a Peak Season this year
Port Products
Green port product review
Commentary
Sustainable: The new buzz word
On the Horizon
Expect to see more LNG fuel stations in the future
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