Fall 2004 GBNRTC Newsletter
Metropolitan Planning Organization For Erie and Niagara Counties
GREATER BUFFALO-NIAGARA REGIONAL TRANSPORTATION COUNCIL
Big apple offers to feed trade to Buffalo Water transportation promoted, Buffalo may become a port of entry for container shipments from Europe and the Far East as a result of negotiations with the Port Authority of New York and New Jersey that could open the region to “exciting” economic possibilities.
The goal of the talks is to establish Buffalo as a “feeder port” to
ease congestion and address land constraints at the New York-New Jersey facilities. Key attractions include Buffalo’s strategic location as a transportation hub within the Northeast market and its existing structure for customs clearance.
Containers would be transferred from ocean-going ships to
railroad cars for shipment to Buffalo, which would become a center for distribution by truck or rail to population centers in the United States and Canada. As such Buffalo would have potential
also for assembly and manufacturing associated with the imports.
The CSX Corporation has proposed using the extensive and partly idle Seneca Yard in South Buffalo, Lackawanna and Hamburg as the terminal for the shipment of containers on flat-bed cars from which they could be unloaded to trucks. Financial aid from the state is sought to help in Big Apple offers to feed trade to Buffalo converting the yard into an intermodal
center and to “meet some of the requirements that the Port of
New York folks are looking for.” The yard, which had once
served the Bethlehem Steel and Ford plants, is not far from the
Gateway Port of Buffalo, just inside Lackawanna, as well as the Buffalo River and the Union Ship Canal, near which a 75-acre Buffalo Lakeside Commerce Park is being developed for warehousing and industrial projects.
The Erie County Industrial Development Agency (ECIDA) and
Buffalo Niagara Enterprise (BNE) have sponsored a study that has assessed infrastructure needs and economic potential of the
“feeder port.”
“We want to work with the Port of New York-New Jersey and the railroad folks to get the model up and running and see what we can do to market and leverage that model,” said John Cappellino, the ECIDA’s director of development. “Let’s say they are bringing in components from Europe or Far East and somebody’s got to bolt them together or screw them together in the United States because that’s part of the whole concept of free trade that they have to have so much American content to avoid paying tariff.
“We can market the transportation-logistics folks and say, ‘Hey, as long as you have to pick up those containers from the train and put them on a truck here, why not do your assembling or your manufacturing here, package the products, paint them, or whatever, and then put them in containers on the truck and take them out to Toronto or Pittsburgh, or wherever.’”
Logistics experts try to keep loading and unloading to a minimum,
Cappellino noted. And land and real estate here are relatively
cheap. Buffalo’s proximity to the Toronto area, an increasingly important market, gives it a potential advantage over such assembly centers as Harrisburg, Pa., he said.
A change in trucking regulations that requires drivers to have a
minimum consecutive number of hours of rest, he said, “we believe also positions our area better” relative to the Canadian and other markets in the Northeast. “One of the big things that
drives logistics people is that they want to be within a day’s truck
drive” of their destination, Cappellino explained. Although the focus is on negotiations with the Port Authority of New York and New Jersey, there has also been speculation about a Buffalo-
Niagara relationship with the Port of Halifax in the province of Nova Scotia.
Such business leaders as Patrick Whalen have formed an organization known as Come to America that promotes the area as an entry point for international container traffic via rail.
Halifax, for example, is described as the Atlantic port nearest to Europe, Russia and the Middle East. The Niagara Falls International Airport, with runways that are “second longest in the state,” is also recommended as a “world-class” center for air cargo.
“I think Whalen and his group have looked at different commodities coming out of Europe — cars, for example, taking them into Buffalo for distribution, or it could be durable goods from the Far East … that kind of thing,” observed Cappellino.
The region is touted by “World Connect” as having “more to offer than any other region in North America” for co-manufacturing,
assembly and distribution facilities for trade goods. One of the selling points is the proposed development of a “Continental
One” (Route 219 in New York State) as a trade corridor southward toward Miami.
“I think logistics is a little bit like the fast-food business,” said
Cappellino. “If you can establish a presence, everybody wants to be in the same area. A McDonald’s comes and then a Burger King
within 10 feet of it.
“I think with the Port of New York-New Jersey looking at Buffalo
as a point to bring container traffic in and distribute from, it’s going to raise the level of awareness in the industry that Buffalo is an important area they should look at for distribution to
the Northeast and Canada.”
Cappellino said even Far East container trade into West Coast
ports offers opportunities for Buffalo as a distribution center to the Toronto market and the Northeast. “If we have the facilities in Buffalo, they can put them on a train at Vancouver or Seattle and take them to Buffalo, and put them on a truck to wherever they want to go. “There’s a bunch of things going on. There are containers that come out of Mexico and Panama Canal Bison yard near Harlem Road traffic. Is there any opportunity there? We’re trying to get a handle on where all the trade traffic moves, container-wise. “And then we’re going to try to create some models within the shipping industry and the logistics folks and say, ‘This is why we think it makes sense for you to land your
stuff here.’”
Cappellino noted that there has been renewed interest in rail traffic as a result of truck-traffic congestion problems, the high price of fuel and air-pollution problems. “The big advantage of truck has always been that it’s fast and dependable,” he said. Warehousing is often regarded as a nuisance that absorbs increasingly expensive real estate that might be used more profitably for production, he noted. Trucks and trains are sometimes perceived as “rolling warehouses.”
An important factor, he indicated, would be the predictability of
rail freight shipments across the border as compared with truck traffic, which has recently experienced significant delays at both the Peace Bridge and the Lewiston-Queenston Bridge. “What’s going to be important as they start trying some of these other modes and hybrid models, is whether they can inject predictability along with the high volume, lowcost components.”
Andrew Rudnick, president of the Buffalo Niagara Partnership,
said, “If we can demonstrate to CN (Canadian National Railroad) and CSX that we can move goods to the Toronto metro area and the Northeast and Midwest faster here then they can by making the switch from rail to truck in the overcrowded ports and rail yards of Toronto and New York – New Jersey we will be able to attract these inland ports and the jobs which go with the logistics
industry to the Buffalo Niagara Region.”
“The Partnership has been focusing on border-access issues and
working with the GBNRTC and local governments to secure funding for projects which will enhance our competitiveness
as a logistics hub.”
Cappellino noted that Canadian National Railroad has “recently
opened a big lumber reload facility down in Lackawanna on the old Bethlehem Steel site” for lumber from Canada that is distributed by truck to such outlets as Home Depot.
A market analysis by the Port Authority of New York-New Jersey
found that containers moving through its port were destined for “a 14-state region” and that where “you need to travel a considerable distance” rail or barge might overcome the advantages of trucking.
As a “feeder port,” Cappellino said, “My understanding is — I
don’t think it’s been totally worked out — that all the customs and that type of activity would occur in Buffalo.
So the point of entry into the U.S. would actually be Buffalo, instead of New York. I think there have been some models where
they’ve done this in some other places. “I don’t know what they’re going to do about specific security issues. I think some of the security issues would take place in New York…”
This proposal makes so much sense. It ties into geographical location which would not only make this a doable cost cutting venture for the companies involved. Think of the time and money they could save by off loading here in Buffalo. Additionally we are no more than a 10 hr drive from 65% of the US population and about 80% of the canadian population.
They built the St. Lawrence Seaway and for the first time it might just benefit us!
I read somewhere that the gov't wants to close the base in Niagara Falls, but Pataki has been pushing it off the chopping block for the last ten years. Maybe it wouldn't be such a bad thing if the base did close. Obviously the Pentagon wants to close the base if they've tried twice in the past 10 years(1995 and again recently). How long can you keep someone from doing something that they're determined to do?
The Niagara Falls airport is unique: it has long runways that can handle a lot of weight. The Buffalo airport can't handle the biggest planes that are out there. Now, if big planes want to go to Niagara Falls, they go to Toronto. The runways at Niagara Falls can handle the biggest planes, so they can take massive amounts of cargo and passengers from anywhere in the world. With the proximity to Lewiston-Queenston, wouldn't it make sense to make this a logistics hub for all things into or out of Canada?
Remain calm!! But run for your lives if necessary!
The conections that we have here as far as port to rail can not be matched anywhere else on the American side of the great lakes. Not to mention the costoms facilities and network all ready in place.
The location is perfect. The CSX intermodal is the only one in the area who has the type of system in place for processing these containers and already has contracts with APL and most of the other international shippers.
They own the tracks in the port area (actually connect with the South Buffalo Railway who services the gateway terminal now) and thier main line is adjacent.
They also service and run the container facilities on the docks in New Jersy and most of the east and gulf coast.
In short, it is a perfect fit for this area and something that should be pursued at the highest levels.
The problem is our bungling local politicans and thier corrupt connections with thier local business friends. If they take thier usual " hook up my partnership buddies with lucrative contracts etc" we will loose this opportunity. These global transportation companies are the big boys and won't play those games. They will bail out as soon as the local yokals step up.
This should be, and probably has been , brought up to Washington and the congresional transportation commitee, who happens to have the local representative of this very district sitting on it.
"If you want to know what God thinks of money just look at the people he gave it to."
By the way, what happened to biker? I miss the old coot.
When you think about it, the number of jobs in the rail end would be minimal. Overall fifty to a hundred jobs.
But the spin off.
More customs agents, More service and repair of rail and related equipment. Increased trucking, increase in the business tax base in Buffalo and Lackawanna.
Not to mention a possible resurgence in some types of light manufacturing, but more in warehousing and distributing.
Quite an opportunity to change the face of our area.
This is much bigger than Bass Pro and more of a worth while investment.
The type of jobs this kind of industry creates are not minimum wage retail shops.
This is exciting and I am surprized the local politicians are not all over this and pursuing and wooing these guys at every level.
"If you want to know what God thinks of money just look at the people he gave it to."
By the way, what happened to biker? I miss the old coot.
I have nothing against increased shipping traffic going thru Buffalo. I make my living in the shipping industry. Unfortunately this proposal simply isn't reasonable and reeks of corporate welfare.
Asian imports typically arrive in LAX. European imports typically arrive in ATL, CHS, or NYC. Canadian imports don't usually enter the US. They are delivered directly to Montreal, Toronto, or Vancouver. I understand the desire to turn Buffalo into a thriving port town, but it isn't supported by reason.
Harrisburg, PA (where I'm originally from), is a much better location in terms of geography and infrastructure. Interstate highways 76, 78, 81, & 83 all converge there. In addition, it is much closer to the oceanports than Buffalo. Land is not as cheap as it is here, but it is widely available and isn't depreciating in value either. Carlisle (15 miles west of harrisburg) is already the truckstop capital of the world and hundreds of companies have invested in warehousing operations in Cumberland/Dauphin county. The momentum there is unstoppable. Funny thing: it is happening down there without government handouts!
Take a step back and consider why this is being done. Is it because Buffalo will be a more efficient deconsolidation point, or is it the CSX lobby that is driving this? If Buffalo is really a wonderful deconsolidation point why do taxpayer dollars need to be spent to subsidize this?
Csx intermodel on William street in Buffalo handles about a hundred containers in and out by rail each day.
When Conrail had it they only delt with trailers, primarily for UPS. They did not deal with containers at this facility.
The CSX came in and saw the potential for the container business in the area. Now that is what this yard primarily deals with. more ten tripled the business and amount of freight it moves.
Unfortunatley, trackage and yard space limit the amount of business that can be done. If the CSX can bring more freight in and create jobs, then God bless them.
We can give a hundred million dollars to develop a bait store that is going to create one hundred low end jobs, but we can't make an investment in the kind of industry that can expand, spin off and create higher paying jobs that will only grow.
Everybody rattels on about the global economy, well heres a shot at getting a piece of it.
The history of this area has always been about it's crossroads location. Transportation built this town. When it was bypassed as a transportation hub we died on the vine. This is a natural fit.
Location, Location, Location.
Bass pro is fine , retail is fine. Now lets develop some real jobs so people will have money to shop there.
"If you want to know what God thinks of money just look at the people he gave it to."
By the way, what happened to biker? I miss the old coot.
Moonshine, we appreciate your enthusiasm for Harrisburg perhaps you should go back
I PERSONALLY DONT GIVE A CRAP ABOUT HOW FEDERAL AND STATE TAXES ARE SPENT. THIS AREA IS OVER TAXED AND UNDER-REPRESENTED FOR 75 YEARS....ITS TIME WE GOT SOME OF OUR MONEY BACK!
THIS IS A NATURAL INDUSTRY THAT CREATED BUFFALO AND IF IT BRINGS OUR TAX BASE BACK AND GIVES PEOPLE A PAYCHECK, THEN I SAY GET OFF YOUR FN HIGH HORSE AND EITHER WORK TO BUILD A BETTER CITY FOR US AND OUR CHILDREN OR GET THE F OUT OF BUFFALO!
SORRY TO BE SO DIRECT BUT IM TIRED OF PEOPLE BASHING BUFFALO AND EVERY IDEA THAT IMPROVES IT.
TELL YOU WHAT ALL THOSE TAX BASHERS.....I HOPE YOU NEVER GET CANCER BECAUSE I WILL BE THE FIRST ONE TO DEMAND THAT MY TAX DOLLARS NOT BE USED FOR ANY SOCIAL SERVICES TO EASE YOUR SUFFERING! YOU LIVE BY REFUSING TO PAY TAXES AND IMPROVE YOUR COMMUNITY....WE SHOULD LET YOU DIE WITHOUT OFFERING ANY TAXES OR COMMUNITY SUPPORT.
I myself want a better future for myself and my children so while I respect your opinion...I couldnt disagree more with your myopic curmudgeonly Buffalo bashing.
Harrisburg is close to Philedelphia, true. I have been to Harrisburg's yard along the river many times.
I have a little expierience in the rail industry. I also am very familiar with the intermodal end of it. Being on the border is a big plus.
There is a rather large custom infastructure in place here. A fresh water port capable of taking deep water vessels,(granted, not some of the larger ocean going container vessels) with rail trackage right there. It also is adjacent to a large amount of open empty land.
As far as a goverment hand out, I don't know how much they are looking for but no matter how much they can or can't get the railroad will build here if it is cost effective and they really need to do it.
The federal and state goverment allocate a certain amount of transportation money for things like this. If it isn't spent here it goes somewhere else.
All I know is it would be great for this area and they all should pull togather to see it happens.
"If you want to know what God thinks of money just look at the people he gave it to."
By the way, what happened to biker? I miss the old coot.
Sorry moadib. Next time I won't interject the real world into your schemes to tax us into prosperity.
Nor will I need your public assistance when I am dying of some disease.
That was a wonderful nightcap. Your sermon put a huge smile on my face
[QUOTE]Originally posted by moonshine
[Asian imports typically arrive in LAX. European imports typically arrive in ATL, CHS, or NYC. Canadian imports don't usually enter the US. They are delivered directly to Montreal, Toronto, or Vancouver. I understand the desire to turn Buffalo into a thriving port town, but it isn't supported by reason.
What about the container yards in North Bergen NJ. New Orleans and Boston, Baltimore, Oakland, Seatle and even Savanah.
These are the ports I dealt with, I have seen North Bergen and New Orleans Terminals, as well as Savanah. These are ship to rail facilities. The amount of containers is staggaring. If we can get a tenth of the business in Buffalo that any of those places handle it would be a major boone to our economy.
I have also seen the amount of containers shipped by rail, probably more by rail than by truck, particularly the ones brought to the west coast from Asia and loaded directly to trains and shipped to the east coast where they are reloaded on ships for europe and vice versa.
This is a huge industry that has pretty much bypassed Buffalo.
This could be an opportunity to change that.
"If you want to know what God thinks of money just look at the people he gave it to."
By the way, what happened to biker? I miss the old coot.
Its happening because NYC, NY & Toronto Ports are at capacity
Thats why they are looking at auxiliary ports, like Buffalo.
OH AND LETS REMEMBER SOMETHING ABOUT NYC THAT IS A DIRTY LITTLE SECRET THAT NO ONE TALKS ABOUT.
NY STATE TAX DOLLARS SPENT IMPROVING INFRASTRUCTURE AND JOBS IN NYC....WIND UP SEEING THOSE COMPANIES AND JOBS MOVE TO ADJACENT LOWER TAX STATES AND MUNICIPALITIES LIKE CONNECTICUT, NEW JERSEY OR PENNSYLVANIA.
SO THE MANTRA SHOULD BE THAT NY STATE TAX DOLLARS STAY IN NY STATE....AND THE REASON I AM SO BIG ON BUSINESS AND TRANSPORTATION IS BECAUSE THERE ARE THREE MAJOR REGIONAL BUSINESS CORRIDORS.
1) BOSTON - WASHINGTON (WHICH INCLUDES THEY CT, NY, NJ & PA AREA) which is still intact North - South Corridor
2) CHICAGO - NYC (WHICH INCLUDED THE IL, IN, MI, OH, PA & NY) the East - West Corridor which has been bypassed for along time since air travel replaced rail and water.
3) AND THE NEWEST NORTH-SOUTH CORRIDOR TO EMERGE IN THE LAST 40 YEARS IS THE TORONTO-HAMILTON-NIAGARA FALLS-BUFFALO at which point it either goes west to Chicago-Cleveland, Detroit-Indianapolic, south to Pittsburgh, east to NYC.
NOW WITH THE PORT OF TORONTO AND THE PORT OF NY-NJ AT CAPACITY AND CONGESTED, BUFFALO IS ONCE AGAIN FACED WITH A CHOICE....EITHER SEIZE AND BUILD UPON THE OPPORTUNITY OR BE BYPASSED. OPPORTUNITY WAITS FOR NO ONE.
PEOPLE FORGET THAT THE MISSISSIPPI WATERWAY IS CONNECTED ALL THE WAY TO PITTSBURGH. MEANING THAT WITHOUT THE ERIE CANAL....NYS COULD HAVE BEEN BYPASSED BY NEW ORLEANS AND THE MIDWEST WATERWAYS.
PEOPLE FORGET THAT PRIOR TO THE ERIE CANAL, PHILADELPHIA WAS A BIGGER PORT AND A BIGGER CITY WHICH MEANT THAT NYS COULD HAVE BEEN BYPASSED.
FORGET ABOUT STATE AND FEDERAL TAXES BECAUSE THAT MONEY WILL GET SPENT ONE WAY OR ANOTHER....I SAY BUFFALO IS OVER TAXED AND UNDER-REPRESENTED...LETS DEMAND THAT MONEY COME HOME TO BUFFALO.
SIEZE THE OPPORTUNITY FOR A BETTER BUFFALO.
Did you know that Albany is already an auxiliary port for the Port of NY/NJ?
The Port of NY/NJ is at capacity and congested thats why they first looked to Albany and are now looking to Buffalo.
Toronto is nearing the same capacity and congestion problems which is why they are now looking to Buffalo.
This is something that we should aggressively pursue!
Originally posted by moadib
Did you know that Albany is already an auxiliary port for the Port of NY/NJ?
The Port of NY/NJ is at capacity and congested thats why they first looked to Albany and are now looking to Buffalo.
Toronto is nearing the same capacity and congestion problems which is why they are now looking to Buffalo.
This is something that we should aggressively pursue!
I agree completely! Inst5ead of pouring $66 million into a outdoors store downtown, put it into something that will make a HUGE, LONGTERM DIFFERENCE!
I also seem to remember that CN Rail wanted to make Buffalo a hub for it's rail operations only a few years ago. I think that idea is still on the drawing board but would fit like a glove with a re energized Port of Buffalo.
Note: I've been to Harrisburg/Carlisle/Lancaster Pa area's quite a bit. And while it's true that there seems to be significant truck traffic and a lot of truck stops, this area doesn't have half the potential of a reenergized Port of Buffalo and the william st railhead. Believe me when I say that there is not a trucking company, railroad, logistics firm or trade organization that doesn't recognize the enormous potential of Buffalo as a major continental distribution/transfer point.
And because transportation/logistics is how I earm my living, I talk to these people all the time.
All you have to do is look at the price of a gallon of gas or a barrel of oil, and it is projected to go higher possibly 80.00 a barrel by summer.
Rail to water, water to rail transport is going to be come more and more attractive to shippers.
We have an opportunity here.
We are in the right place at the right time and should sieze the moment.
"If you want to know what God thinks of money just look at the people he gave it to."
By the way, what happened to biker? I miss the old coot.
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