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SPECIALADVERTISINGSUPPLEMENTMemphisIncomparable ReachAn outstanding variety of transportation options helpsmake Memphis an ideal location for logistics operations.October 2012 Inbound Logistics 1
MemphisIncomparable ReachIt always pays to be well-connected, and youwon’t find better connections than the ones inMemphis. There may be no other city in NorthAmerica that offers as many fast and effectiveways to move freight to and from so many places.Transportation via the Four Rs – rail,runway, roads, and river – gives Memphisa tremendous reach. Most of the majorEast, West, and Gulf Coast ports, the contiguous U.S. states, Canada, Mexico, andall the world’s major markets are reachedwith an easy trip from Memphis, thanksto the dense transportation network thatradiates from this prime logistics market.With five Class I railroads, seven interstate and U.S. highways, one of the world’sleading cargo airports, and the nation’sfourth-largest inland port, Memphisoffers shippers an outstanding combination of efficiency and flexibility. Addthe city’s broad array of logistics services, and its abundant and reasonablypriced warehouse space, and it’s easy tosee how Memphis earned its reputationas America’s Distribution Center andAmerica’s Aerotropolis.New Rail and Intermodal InvestmentsMuch of the big logistics news inMemphis these days has to do with its railand intermodal infrastructure.T he t h i rd-la rgest U. S. ra i l center, Memphis offers service via NorfolkSouthern (NS), BNSF Railway, UnionPacif ic (UP), CSX, a nd Ca nadia nMemphis’ logistics success lies in its central U.S. location and wealth of transportation options. The Mississippi River, railroads, expedited air services,and highway network keep shippers connected to trading partners worldwide.2 Inbound Logistics October 2012
“If it moves, it connects in Memphis.”Memphis: America’s Aerotropolis –a city where orders come in after dark and deliver the nextmorning at dawn. A three-shifts-a-day city where containersship lean and finished goods ship out fast. Memphis can addcompetitiveness to your company by adding hours to your day.www.memphischamber.com
MemphisNational (CN) Railway. Companies shipping from Memphis by rail can reach 45U.S. states, Canada, or Mexico within twodays. Rail carriers also tie Memphis to awide variety of North American ports.Memphis houses six fully operationalrailyards that offer the combined capacityto lift more than two million intermodalcontainers per year. And that capacity isgrowing as rail carriers continue to investin Memphis.In 2010, BNSF completed a 200-million project to expand and rebuildits Memphis hub. This new MemphisIntermodal Facility doubled the railroad’slift capacity at the site to one millionlifts per year. Equipment at the facilityincludes eight wide-span, electric, railmounted gantry cranes. Three of thoseare stacking cranes that move containers between trucks and stacks. The otherfive are production cranes used to loadand unload trucks, and stack containerson railcars.4 Inbound Logistics October 2012Incomparable ReachSix railyards – including Norfolk Southern’s newMemphis Regional Intermodal Facility – offerthe combined capacity to lift more than twomillion intermodal containers per year.The site also features an automated gatesystem for moving trucks in and out withmaximum efficiency. This new system hasimproved truck turn times from 60 minutes to about 25 minutes.“Memphis is one of the nation’s moststrategic logistics hubs,” says SteveBranscum, BNSF group vice president,consumer products. “BNSF’s significantinvestment in this new facility not onlymakes it one of the most efficient andenvironmentally friendly intermodalfacilities in the country, but also improvesMemphis’ position in the global supplychain by offering shippers more capacityand service options.”CN is also expanding, with plans toconstruct its new Memphis LogisticsPark next door to the CN-CSX intermodal gateway in the Frank C. PidgeonIndustrial Park. In early 2012, the Port ofMemphis granted CN a 10-year optionto purchase up to 800 acres in the park.The new facility will provide space fordistribution centers that ship or receiveintermodal freight.Expanding CapacityIn July 2012, NS opened the first sectionof its new Memphis Regional IntermodalFacility in Rossville. When complete, the 105-million project will cover more than400 acres and provide the capacity to handle more than 327,000 containers andtrailers per year.The facility, which is expected to createor enhance 6,200 jobs in the Memphisregion over the next 10 years, is part ofNS’s 2.5-billion Crescent Corridor project to develop a high-speed 2,500-mileintermodal rail line linking Memphis andNew Orleans with New Jersey.“The Memphis intermodal facilityanchors Norfolk Southern’s Crescent
FasTEsT NATIONWIDEFedEx Freight Priority has the fastest publishedtransit times of any nationwide LTL service.In a world that’s always on fast-forward, yourcustomers want instant satisfaction. That’swhy FedEx Freight moves your shipmentsfast. Then we go beyond fast with servicefeatures that keep your business up-to-thesecond smart.Accelerate your success. Ship fast — andsmart — with FedEx Freight. Learn moreat fedex.com/fastfreight.FedEx. Solutions That Matter.SMAll services are subject to terms and conditions provided inthe FXF 100 Series Rules Tariff. 2012 FedEx. All rights reserved.
MemphisCorridor rail route, connecting theNortheast and Southeast with high-speed,reliable, truck-competitive intermodalservices,” says Norfolk Southern CEOWick Moorman.The facility uses the latest in gate andterminal automation technology, whichshortens the wait time for trucks entering the terminal, reducing exhaustemissions and improving truck driverproductivity. Additionally, state-of-theart, low-emission cranes will operatewithin the terminal, and the main administration building was built to Leadershipin Energy and Environmental DesignCertification standards.These expansion projects, combinedwith Memphis’ position as a hub on somany major rail lines, make the city asuperior distribution point, says Buzz Fly,vice president of Patterson Warehouses.The Memphis-based logistics services provider maintains five buildings in the city,with a total of 1.5 million square feet ofwarehouse space. Patterson specializes inimport distribution and retail fulfillment,Incomparable ReachThe Memphis-Panama ConnectionThe number of transportation options Memphis offers shippers will increase evenfurther in 2014 with the reopening of the Panama Canal.“Memphis as America’s Distribution Center will be enhanced further with the PanamaCanal expansion, by adding a third coast for expedited inbound freight options,” says NeelyMallory III, president of Mallory Alexander International Logistics and chair of the GreaterMemphis Chamber’s Regional Logistics Council. “These assets yield operating efficienciesfor the city’s current and prospective businesses.”The Regional Logistics Council focuses on promoting Memphis’ assets, including itsgeographic location and world-class infrastructure in all four transportation modes.It also works to enhance that infrastructure.medical and food products, constructionmaterials, and general commodities.Memphis’ expanding capacity to handle intermodal containers provides amajor advantage for shippers importingfreight from Asia. Although Chicago isalso served by five Class I railroads, thatcity is already so developed that there’s little room for rail carriers to enlarge theirfacilities there. “If you try to send freightto Chicago, it might get delayed waiting tobe unloaded from the trains,” Fly explains.But Memphis still has a great deal ofavailable land, and the ability to expandits infrastructure. “That gives the city anatural advantage,” he adds.Quadramodal CityMemphis’ rail and intermodal infrastructure are enough to make the citya prime business location, but it is thevariety of transportation options thatMemphis’ transportation connections would be meaningless without ample storage facilities. Patterson Warehouses maintains five locations in thearea, offering a total of 1.5 million square feet of warehouse space for import distribution and retail fulfillment.6 Inbound Logistics October 2012
Turn our expertiseinto your early advantage.Start your next project right, with conceptualsite planning and supply chain design.For more than a century, Norfolk Southern’s industrialdevelopment team has provided top-quality site selectionassistance to companies with rail transportation needs. Ourproject managers, engineers, and logistics professionals havethe in-depth knowledge and cutting-edge tools necessary toensure you choose the optimal site for your next project. One ofthose optimal sites might be near our newly expanded MemphisRegional Intermodal Facility in Rossville,Tenn., which employsthe latest in gate and terminal automation technology to shortentruck waiting times and boost productivity. The Memphis facilityanchors Norfolk Southern’s Crescent Corridor route, the shortestintermodal double-stack route from New Jersey to Louisiana.Let’s get started. Our team is ready to quickly provide informedsite recommendations, conceptual site and track planning,and supply chain design, all in complete confidence. Rely onNorfolk Southern to give your next project an early advantageand outpace the competition.Visit nsindustrialdevelopment.com orscan the QR code to learn more about whatindustrial development can do for you.Call 404.529.1591 oremail newell.baker@nscorp.comto start planning today.IndustrIal development 2012 Norfolk Southern Corp., Three Commercial Place, Norfolk, Va. 23510, www.nscorp.com, 855-NOR-FOLK
Memphisdistinguishes it as a logistics powerhouse.“Memphis is a ‘quadramodal’ transportation hub,” says Yossi Sheffi, Elisha GrayII professor of engineering systems at theMassachusetts Institute of Technology,and director of the MIT Center forTransportation and Logistics.Sheffi devotes an entire chapter toMemphis in his new book, LogisticsClusters: Delivering Value and DrivingGrowth, a study of cities that have developed particularly dense concentrations oflogistics facilities and services. Accordingto the book, published by MIT Press inSeptember 2012, these clusters are strongengines of economic activity and jobcreation.“Memphis started to become a logistics cluster with the cotton trade,” Sheffinotes. “Today, the city’s logistics successlies with the presence of the railroads,FedEx’s World Hub, the highway network,and the Mississippi River.”UPS, DHL, and the U.S. Postal Servicealso have major operations in Memphis.Incomparable ReachMore than 400 trucking companies andnumerous logistics service providersoperate in the city. A world-class cargoairport and one of the largest inland portsin the United States also help to extendMemphis’ reach.NOW AVAILABLELand sites and build-to-suitMarshall County, MS1024 acres available 45,000/acreTier III countyFayette County, TN475 acres available 45,000/acre Rail sites availableAdjacent to new Norfolk Southern Intermodal terminalAccess via Highway 72 & Highway 302Approx. 2 miles from the future I-269 interchange at Goodman RoadTommy JacksonSenior Vice President901.260.1178tommy.jackson@cbre.com8 Inbound Logistics October 2012CBRE 1012.indd 1Jim Mercer, SIORExecutive Vice President901.260.1030james.mercer@cbre.comMemphis International Airport has been thebusiest air cargo airport in North America for19 years in a row, and currently ranks second inthe world to Hong Kong.Air Cargo AdvantageFor some companies, the most compelling reason to locate in Memphis is afacility that occupies a sizeable portion ofthe Memphis International Airport: theFedEx World Hub, a transportation nervecenter that processes more than 3.3 million packages every day, and connectsshippers to more than 220 countries andterritories on six continents.Companies that locate close to FedEx inMemphis gain a big advantage: they candrop off packages for next-day deliverylater than their counterparts in any otherU.S. city.“The cut-off is midnight Central Time,”says Tom Kaden, vice president of warehousing and distribution at Mallory10/15/12 11:41 AM
confidence delivered. on time. with care. everywhere.call 1.800.257.8464 or visit mallorygroup.com.Whether your freight is big and unwieldy or extremely delicate, look to the leading specialist in global logistics and supply chainservices to deliver impeccable care and attention with every job.We give every delivery the royal treatment.The State Hermitage Museum, St. Petersburg
MemphisAlexander, a Memphis-based firm whoseservices include customs brokerage,freight forwarding, warehousing, distribution, and transportation. Late cut-off isa boon for companies that use Mallory’sdistribution services.“West Coast customers can take ordersout of their inventory stock in Memphisuntil 10 p.m. Central time, and have themdelivered the next day,” Kaden notes.Another group that benefits greatlyfrom the FedEx factor in Memphis is consumers who order flowers from Mallorycustomer 1-800-Flowers. “During theirkey holiday periods, we ship 50,000 to60,000 fresh bouquets to recipients allThanks to late cut-offtimes at Memphis’FedEx World Hub,1-800-Flowerscustomers can orderuntil midnight CentralTime for next-daydelivery.10 Inbound Logistics October 2012Incomparable ReachA central location in the continental UnitedStates and a mild climate make Memphis anattractive choice for air cargo.over the United States,” says Kaden.Many procrastinating consumers haveescaped embarrassment on Valentine’sDay thanks to Mallory’s employees andFedEx’s late cut-off time in Memphis.“We fill those orders up to midnighton Feb. 13, and FedEx sends them outto reach their destination on Valentine’sDay,” Kaden says.Proximity to the World Hub also allowsMedtronic, one of the world’s largestmanufacturers of medical devices, to fillorders from physicians who need itemsfor surgery the next day, points out LarryCox, president and CEO of the MemphisShelby County Airport Authority.That access is key to the success ofthe massive Flextronics repair depot inMemphis. “The company ships laptopcomputers into Memphis, works on themovernight or the next day, then ships themout,” says Cox.In addition to the World Hub, FedEx’sother Memphis operations include twoFedEx Ground hubs, a FedEx SmartPosthub, and two FedEx Freight servicecenters. The city is also the world headquarters for FedEx Corporation, FedExExpress, FedEx Freight, FedEx SupplyChain Ser v ices, and FedEx TradeNetworks.Attracting Air FreightAs big an influence as it wields, FedEx isfar from the only factor making Memphisa magnet for companies that ship by air.Memphis International Airport has beenthe busiest air cargo airport in NorthAmerica for 19 years in a row, and currently it is second in the world only toHong Kong. In 2011, 3.9 million tons ofair cargo passed through Memphis.UPS operates a major sorting center onairport property, serving both its air andsurface transportation operations. Fiveother all-cargo airlines provide niche services and flights to smaller cities.“Memphis can serve any cargo need ashipper might have,” says Cox.Memphis Internationa l has four
B N S F R A I LW AY M e M p h I S I N t e R M o d A L F A c I L I t YMeMphIS pRoUdBeyond being one of America’s best locations for warehousing and distribution,Memphis is a great city. That’s why we are proud to have a presence in thisvibrant community with our Memphis Intermodal Facility – a premier hubserving the supply chain needs of America and beyond.BNSF.coM
MemphisIncomparable Reachrunways and the newest, most efficientair traffic control tower in the country. A central location in the continentalUnited States and a mild climate, withfew weather interruptions, also makeMemphis an attractive choice for air cargo.To make air shipments to and fromMemph i s e ven more c onven ient ,Memphis International recently openedCargo Central, featuring a dedicatedcargo ramp to serve chartered cargoplanes. “We can park 12 747-400s at onetime,” says Cox.When Cargo Central’s five-phase development is complete, it will offer 282,000square feet of build-to-suit space forwarehousing and other activities for companies that need easy access to air cargoservices.Air transportation is so central toMemphis’ economy that local officialshave made the airport the centerpieceof an initiative to further develop thecity’s transportation infrastructure andMagnet for ManufacturersWhile manufacturing ison the decline in much of theUnited States, Memphis hasexperienced a resurgence. Inthe past few years, at leasteight manufacturers havemade investments ranging from 50 million to more than 300million in Memphis. They are:Blues City Brewing Company,Cargill, Electrolux, KrugerProducts, Mitsubishi ChemicalCorp., Mitsubishi Electric PowerProducts Inc. (MEPPI), Nucor Steel,and Riviana Foods.Their investments include newlocations in the city, expansionsof existing operations, andconsolidation of operations fromseveral cities into Memphis.Montreal-based Kruger, forexample, is spending 316 millionto upgrade its KTG USA facility inMemphis, which manufacturesWhite Cloud bathroom and facialtissue.Most of these companieshave chosen to locate or expandin Memphis in part becauseof the multiple transportationoptions available there. Forexample, MEPPI’s new facilityfor producing large powertransformers is in the RivergateIndustrial Park, giving itimmediate access to the rail linesand barges needed to transport12 Inbound Logistics October 2012those immense products, aswell as access to highways forsmaller components. Electrolux’sNorth American CookingProducts plant in the Frank C.Pidgeon Industrial Park enjoysthe same sort of access tomultiple transportation modes.Other recent investment inMemphis includes: In January 2012, Nucorannounced plans to expandproduction of specialty steelbar at its Memphis plant. Nucorhas made 350 million in capitalinvestments in that facility since2006, and in 2012 the companyapproved another 113-millionexpansion in Memphis.In 2011, the facilityreceived shipments ofscrap steel from more than20 states. Fifty percent ofthat tonnage moved by rail,34 percent by truck, and 16percent by barge. Thesame year, Nucorshipped 60 percent ofits finished product outof the facility by railand 40 percent by truck. In 2010, RivianaFoods opened a new400,000-square-footmanufacturing facilityin Memphis, part of anexpansion in the citythat started in 2006. Theplant receives an average of30 truckloads of rice per day,along with an average of ninetruckloads of supplies such ascorrugate, cartons, and CHEPpallets.For outbound shipmentsof finished products, Rivianatakes advantage of an arrayof transportation options. In2012, it shipped an average of76 loads per week by truck, 128loads via intermodal, and six byboxcar. Buyers made their ownarrangement to pick up another14 loads. Cargill has beenconducting an 82-millionrenovation and expansion of itscorn mill on President’s Islandin Memphis. In 2011, Cargillreceived an average of 209shipments of raw materialper week via rail and sevenvia barge. In that same year, itshipped an average of 628 loadsof finished goods by truck, 201by intermodal, 162 by rail, andfour by barge.Manufacturing leadersunderstand that efficienttransportation links and flexibleoptions help drive the bottomline. The variety of rail lines,air routes, highways, andwaterways stretching fromthe heart of Memphis to allcorners of North Americagives these companies theextended reach it takesto hit their goals.Appliance manufacturerElectrolux maintainsits North AmericanCooking Products plantin Memphis’ Frank C.Pidgeon Industrial Park.
WORLD’S BUSIESTAIR CARGO AIRPORT18 Of ThE LAST 20 yEARSwww.memphisairport.org12-MAA-0029 7x10.indd 110/1/12 4:00 PM
MemphisIncomparable ReachOn the RoadTruck shipments can reach more points next-day from Memphis than from any other U
FedEx Freight Priority has the fastest published transit times of any nationwide LTL service. In a world that’s always on fast-forward, your customers want instant satisfaction. That’s why FedEx Freight moves your shipments fast. Then we go beyond fast with service features that keep
