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All Roads Lead to...
Kansas City
SmartPort
About SmartPort
Kansas City SmartPort is a non-profit economic development
organization formed to promote and enhance the Kansas City metro
area's status as "America's Inland Port
Solution." SmartPort has two main focuses in its mission:
- To grow the area's transportation industry by
attracting businesses with significant transportation and logistics
elements;
- To make it cheaper, faster, more efficient, and secure for
companies to move goods into, from, and through the Kansas City area.
Origins of SmartPort
The Kansas City area has a historic link to the development and
evolution of the transportation and distribution sectors, resulting
from its early days as a trading post, and site of the first permanent
rail crossing over the Missouri River.
Today, international trade is emerging as an important
inter-jurisdictional issue in the Midwest region. The 1998
Mid-Continent TradeWay Study reinforced this reality. This study found
that a significant amount of international cargo is already processed
in, or passes through the Kansas City region. In addition, NAFTA trade
in Kansas and Missouri is growing, and opportunities exist to provide
value-added services for NAFTA goods processed, which means more freight in the
Greater Kansas City Area. The study also showed that the area needed a
single organization with a sole focus of growing the transportation
industry - enter Kansas City SmartPort.
The Kansas City Advantage
Kansas City has several key components that make it an excellent
hub for all transportation and logistics operations:
- The largest rail center in the United States by tonnage;
- More Foreign Trade Zone space than any other U.S. city (over
10,000 acres);
- Located at the intersection of three of the nation's
major interstate highways (I-35, I-70, I-29) and soon to be 4th - I-49;
- The Kansas City International Airport, which moves more air
cargo each year than any air center in a six-state region;
- Located on the largest navigable inland waterway (MO/MS River
system);
- The heart of a rail corridor spanning coast to coast across the
U.S. and extending from Canada to Mexico (NAFTA Railway).
SmartPort Initiatives
In working to carry out the objectives stated in the mission,
SmartPort plays an active role in three crucial areas:
- Economic Development - SmartPort is focusing on attracting
investments from companies with significant transportation and
logistics elements such as distribution centers, warehouses,
third-party logistic providers, and manufacturers.
- Intelligent Transportation Systems - SmartPort is working to
improve the Kansas City area's ITS infrastructure by first
analyzing the needs of the industry, and then developing architectural
designs and test projects to meet those needs.
- Business Services - SmartPort is working to bring additional
services, such as foreign customs offices, to the Kansas City area, to
aide business of all sizes in moving their goods, both domestically, and
internationally.
KC SmartPort Business Plan
Mission Statement: Kansas City SmartPort is a non-profit economic
development organization formed to promote and enhance the Kansas City
metro area's status as "America's Inland Port
Solution." Its mission is two-fold:
- To grow the transportation and logistics industries in greater
Kansas City; and
- To make it cheaper, faster, more efficient, and secure for
companies in the Kansas City region to move their goods in, out, and
through the region.
Background
A joint effort by the Greater Kansas City Area Chamber of Commerce
(The Chamber), the Kansas City Area Development Council (KCADC), and
the Mid-America Regional Council (MARC), Kansas City SmartPort was
created as a non-profit organization in June 2001. The decision to
create SmartPort as an independent non-profit entity was based on the
findings of The Chamber's 1993 Intermodal Task Force, the
1995 Intermodal Freight Strategies Study and 1999 Mid-Continent Trade
Way Study. The studies concluded that the freight and transportation
industry had significant impact on the economy of the Kansas City
region, and that enhancing the capacity of Kansas City as a trade hub
was both feasible, and supported by the business community.
From its origin as a trailhead for the Oregon and Santa Fe Trails,
the Kansas City region has always been a center for international
trade and freight. Kansas City is the busiest rail hub, largest by
tonnage, in the United States and the largest air cargo hub in a
six-state area. The region is strategically located at the
intersection of three major interstate highways - 29, 35 and 70 - and
is on the nation's largest navigable inland waterway, the
Missouri/Mississippi River System. The region has abundant foreign
trade zone space and a thriving transportation/logistics industry. The
local U.S. Customs Service Office clears over $9 billion worth of
goods each year.
The Kansas City area is a vital link in the nation's
freight transportation system. The 1995 Intermodal Freight Strategies
Study estimated that 80 million tons of freight moved to and from the
region, and that approximately 50% of all eastbound intermodal freight
entering U.S. commerce through West Coast ports passed through the
Kansas City area.
The freight industry is a vital part of our regional economy. The
Intermodal Freight Strategies Study estimated that the freight
transportation industry was responsible for over 40,000 regional jobs,
and for real wages and salaries in excess of $900 million annually.
Growth in U.S. trade with Canada and Mexico, combined with our
region's location on strategic East-West transportation
routes, provides an opportunity for the Kansas City area to play an
increasingly significant role as a center for international trade.
SmartPort Objectives
Economic Development Transportation has always been a central
part of economic development and the strength of a region. Without
good transportation access, a region's economy eventually declines, as
businesses, jobs, and people move elsewhere. Manufacturing businesses
rely heavily on road, rail, airport, and/or port access for the
movement of raw materials and finished goods. With the development of
customized production and JIT (Just In Time) manufacturing, and other
cost savings procedures, reliable transportation routes and on-time
delivery are critical.
Kansas City has the transportation strengths and infrastructure to
meet the needs of manufacturers and
distributors. SmartPort's initiatives to improve on these
transportation strengths with new technologies, will only increase the
marketability of Kansas City to new investments.
In cooperation with KCADC, SmartPort will develop the resources to
become part of the team for economic development
recruitment. SmartPort will be brought into projects to provide
transportation solutions to prospects looking at the Kansas City
area. This focus will allow SmartPort to create a niche in the KCADC
strategic plan, and allow for the direct involvement in economic
development projects in this sector.
Strategies:
- Identify the key site selection and consulting firms involved
in logistic projects and communicate Kansas City strengths;
- Identify a short list of corporate targets with logistics
operations, and communicate directly to them about Kansas
City's strengths;
- Partner with the Economic Development Alliance in Kansas City
to provide the needed resources and marketing information related to
the logistics industry;
- Partner with KCADC in all marketing and promotional events to
tailor a consistent logistics message;
- Work with KCADC on their new manufacturing and distribution
initiative to provide information on the logistics industry in Kansas
City;
- Coordinate the design of a corporate survey as part of the
federal earmark funds to determine the critical elements of a
transportation system needed for new investments;
- Develop relationships with other inland and ocean based ports
to promote coordination and cooperation.
Intelligent Transportation Systems
Kansas City has the transportation infrastructure in place to
solidify Kansas City's position as a leading transportation
hub in the United States. The Metro has three major interstate
highways connecting in its center, the largest by tonnage rail yard in
the country, the largest inland navigable waterway, and the largest
air cargo facility in a six state region.
SmartPort will work with the Kansas and Missouri Departments of
Transportation, the railroad companies, the Kansas City Aviation
Department, and the port authorities to continue to focus attention on
the needs for maintenance, improvements, and growth in the
Metro's physical infrastructure.
SmartPort will also work with the above-mentioned groups, and the
Federal government, to design and implement intelligent transportation
systems to improve the security and efficiency of the transportation
infrastructure. SmartPort and MARC will continue to develop funding
requests to the Federal government as it relates to ITS needs in the
Kansas City area.
Federal Highway Administration - ITS Integration Funds
Kansas City SmartPort received an earmark appropriation of $500,000
in the FY03 appropriations bill. The funds are committed to SmartPort
through the request of the Kansas Department of Transportation.
The proposal will be built around the development of an integration
architecture focused on the intermodal facilities in Kansas City. The
goal will be to build a secure, efficient, integrated system that
allows for increased freight traffic in and out of Kansas City,
utilizing a combination of rail and truck and air and truck
transportation methods. In addition, the integration architecture will
be designed to link with systems in Canada and Mexico.
The initial stages of the proposed plan will focus on research and
analysis of the existing intermodal facilities, and the needs
associated with each, and the entire network. In addition, a survey or
data gathering tool, will be designed and implemented to determine
those elements of the transportation infrastructure and ITS, that is
the most attractive to manufacturers, distributors, and transportation
companies both located in Kansas City, and outside the Kansas City
area. This input will be vital to designing and implementing the
actual ITS integration components. It will also identify the ITS
systems being deployed or designed along the major transportation
corridors feeding in and out of Kansas City. The success of Kansas
City's ITS will depend on the development of compatible
systems along these trade corridors.
The second phase will be on the development of the ITS architecture
and system requirements that are identified from Phase 1. This
architecture will be the key to developing the actual ITS systems that
are needed to make Kansas City a secure, efficient, and integrated
transportation center.
The last phase will focus on those elements of the ITS architecture
that can be implemented or designed within the framework of the ITS
Integration Program.
Strategies:
- Form strategic team of SmartPort board members to draft the
proposal for funding;
- Work with economic development team to develop the survey to be
used to determine site location decision factors on transportation;
- Hire research firm to perform the overall analysis of
intermodal freight industry.
Homeland Security
The Department of Homeland Security is focusing more and more
attention to the safety of the transportation
infrastructure. Operation Safe Commerce was drafted, and has started to
be implemented in the foreign ports, and the ocean ports of the United
States. These programs are directed at securing the freight movement
within the United States. The Secretary has stated that security
begins at the origin port, not the U.S. port. Even with that statement,
funds are being allocated to secure the ocean ports, and SmartPort
believe the next round of funding initiatives will include funds for
inland port security. SmartPort will work with the Congressional
delegation to designate Kansas City as the pilot project for inland
port security.
Business Services
Exports and imports in Kansas City are growing each year. More
companies in the region are becoming involved in international
business, whether it be importing or exporting. There are services in
the region to assist and support this growth, but key components
related to the movement of the goods are missing.
SmartPort's mission to make it cheaper, faster, more
efficient and safer to move goods in, out, and through the region,
dictates that SmartPort focus on these services within international
business development.
Strategies:
- Secure the support of the Mexican Consul General in Kansas City;
- Secure the support of the Canadian Consul General in Chicago;
- Get letters of support from the political leaders in Kansas,
Missouri, and Kansas City;
- Meet with Mexican officials to present details of plan;
- Meet with Canadian officials to present details of plan.
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