The Ports-to-Plains Corridor Coalition
asked the Commonwealth Consulting Corporation (Commonwealth) and
Business Development Advisors team to conduct an economic development
research project. The purposes of the project are to:
Analyze
economic activity along the corridor
Identify
catalyst projects that can enhance economic development along
the corridor
The Commonwealth team’s approach
to this project was to start at the community level and build
up the analysis and recommendations from the local perspective.
Commonwealth analyzed 20 individual cities, counties and towns
along the Corridor to create a relevant and useful economic picture
to support decision-making. Commonwealth was also asked to identify
action items, not create a general strategy document. Ports-to-Plains
Trade Corridor Coalition strongly believes that this guidance
should come from communities, not a consultant. Commonwealth's
role, then, was to obtain input on priorities and goals from community
leaders, which was then put in the context of the overall economic
picture for the corridor.
Finally, Commonwealth used its knowledge
of the federal government and economic development practices to
supplement community inputs with a review of appropriate federal-level
transportation and economic development programs that could serve
as catalysts for development. Commonwealth also preliminarily
identified a set of potential business development opportunities
that relate to increased trade traffic along the Corridor.
This report includes the following
sections:
CORRIDOR ECONOMIC DATA
This section collects, for the first
time, basic economic information about the Corridor communities
and puts it into the context of the Corridor. By understanding
the factors described below, we will be better able to draw conclusions
about the type of catalyst projects, federal programs, and business
development opportunities that are appropriate.
Economic Base
Communities
along the corridor, including the metropolitan areas, are relatively
small, and economic development strategies need to be scaled accordingly.
However, several communities are growing rapidly, which suggests
a different set of economic development issues than for the communities
that are not growing or are shrinking.
Income and
wages are both well below the US average in most communities.
Employment
in the corridor is more heavily farm and transportation-oriented,
and less manufacturing and services-oriented than the US as a
whole.
Work Force
Work
force issues are critical. Most communities would be perceived
to have limited labor pools, with small populations and low unemployment.
Unemployment is often low because of declines in population, rather
than as a sign of economic vitality.
Most locations
seek to increase jobs in order to keep people in their communities.
The problem is especially acute with college educated citizens
who leave the area because there are not sufficient local opportunities.
Summary of Statistics
Infrastructure
Highway
transportation, especially north-south, has been a relative weakness
of the region. This is one of the reasons the Ports-to-Plains
Corridor is so important. It will help link the region internally
and externally.
East-west
access through many communities is strong, and this asset will
become more valuable when combined with improved north-south transit.
Most communities
are served by rail. Many have spurs, switching facilities, or
other facilities that make the rail service an active asset. The
corridor north of Lubbock tends to be served by BNSF, while the
southern section tends to have Union Pacific rail service. Amarillo
has a BNSF Intermodal facility, the only one along the corridor.
Both Eagle Pass and Laredo have rail crossings into Mexico.
Air service
is a relative weakness for the corridor. Strong air hubs can support
and attract professional services firms, but the small hubs along
the corridor may not be sufficient to generate this type of benefit.
The limited air cargo operations, except in Laredo, also suggest
limited cargo benefits at the airports.
Institutions and Facilities
The
corridor has several colleges and universities. Texas Tech is
the biggest institution by far and is an extremely valuable asset
for both Lubbock and the region. West Texas A&M, Angelo State,
and Texas A&M International are the other public universities
along the corridor. In general, communities with established higher
education facilities are better positioned to attract high-value,
high-salary, and high-growth professional services operations
and employees.
Commonwealth
also examined trade-related assets. The three border counties
have the strongest position in this category. Overall, six corridor
communities have Customs Ports of Entry, and four have Free Trade
Zones. Mexico has consular offices in Midland, Del Rio, Eagle
Pass and Laredo.
Beyond the
border communities, trade-related assets and supporting services
appear to be limited. The Northwest Texas International Trade
Center at Texas Tech is one notable exception. To encourage or
take advantage of increased trade opportunities in the region,
it seems likely that more trade-based resources will be needed
to support local businesses.
Federal Empowerment
Zones and state Enterprise Zones can be useful for community and
business development. There may be opportunities for these programs
to be directly applied to Ports-to-Plains related projects to
support growth along specific areas of the corridor.
Commonwealth
examined the presence of federal offices and facilities in corridor
communities primarily to determine if any are sufficient to serve
as a catalyst to economic development. In general, the federal
presence in most locations is limited and not likely to serve
such a role.
CATALYST PROJECTS: FEDERAL PROGRAMS
A major goal of this study is to
help corridor communities access federal funding. While transportation
is the priority, this section will also address relevant federal
economic development programs that may be of interest to corridor
communities.
Highway Construction
To date the Ports-to Plains coalition’s
primary focus has been to secure corridor designation. The next
step is to secure funding for recommended highway improvements.
This report lists community-identified highway projects related
to the Ports-to-Plains Corridor and organizes them by congressional
district.
The key to obtaining funding for
projects is to unite as corridor behind a limited set of priorities.
Ports-to-Plains funding is not as likely to succeed if each community
approaches congressional leaders seeking funding for individual
projects.
Ports-to-Plains also needs to provide
the rationale for supporting priority projects and establish a
strategy to position itself for the near-term appropriations process
and 2003 reauthorization of TEA-21.
Intelligent Transportation Systems
(ITS)
In addition to highway construction,
the Ports-to-Plains Corridor Coalition also requested Commonwealth
to examine ITS projects that would support the corridor.
Commonwealth recommends beginning
by pursuing ITS initiatives related to safety under the Emergency
Medical Services (EMS) development track in the Rural ITS program.
Safety issues that ITS can help address are haz mat, communications
(especially to facilitate emergency response), incident management,
and corridor-wide coordination and communication.
There may also be opportunities
within the Commercial Vehicle Operation (CVO) program. One concept
would be to develop an inland customs facility that pulls certain
functions relating to truck traffic away from the border areas.
For example, a truck sealed at an approved facility in Mexico
could travel through the border to a customs destination along
the Corridor, avoiding congestion at the border crossings. With
ITS it may be possible to track and then inspect the truck to
ensure it meets regulatory standards. This type of operation could
provide significant trade-related benefits along the Corridor.
Many ITS projects are funded through
congressional earmarks. The strategy for obtaining earmark funding
for ITS projects is similar to that for highway construction projects.
First, it is helpful to establish proof of need. Second, coalitions
are helpful. The Ports-to-Plains Corridor Coalition is well-positioned
to lead this type of effort. It is also generally useful to work
with an organization that has an established ITS funding flow.
The Texas Transportation Institute (TTI), or its regional division
focused on rural transportation issues at West Texas A&M University,
may be likely partners.
Rural Economic Area Partnership
(REAP) Zones
REAP Zones are a pilot concept within
the US Department of Agriculture’s Office of Community Development.
The concept is to encourage collaborative and community-led economic
development. Commonwealth believes this program can serve as a
catalyst because it provides priority funding for strategic economic
development projects in Zone communities.
Zones are formally established through
Memoranda of Agreement signed by Zone communities, the USDA, and
Congressional representatives. Strong political support is critical.
Developing a strategic plan is an important part of the process,
since it identifies and builds institutional support for economic
development projects.
REAP Zone designation could provide:
Assistance
in corridor-wide strategic planning to realize the full economic
development benefits of corridor designation;
Opportunities
to obtain significant public and private sector funds to support
development efforts; and
Enhanced
ability for individual communities (even the smallest jurisdictions)
to access funds through the Ports-to-Plains Corridor Coalition.
Commonwealth recommends pursuing
the concept with congressional representatives and USDA officials.
With initial feedback, the Corridor coalition can then take the
lead on developing the concept to serve corridor communities in
whole or in part.
USDA Rural Development and US
Department of Commerce Economic Development Administration
This report provides an overview
of key economic development programs within the US Department
of Agriculture and US Department of Commerce. While these programs
may not be considered catalysts, they can be extremely useful
for community planning, development, and business support projects.
The Ports-to-Plains Corridor coalition can play a useful role
in helping corridor communities, especially those with limited
grant-writing experience, access funds for which they are eligible.
BUSINESS DEVELOPMENT OPPORTUNITIES
The purpose of this section is to
analyze expected trade traffic within the corridor and address
possible industries and services that can develop as a result
of corridor completion. We have divided this task into two sections:
trade-oriented opportunities and transit-oriented opportunities.
There are no resources that provide
detailed trade data for corridor jurisdictions, so we do not have
sufficient information to determine the spin-off industries related
to trade traffic along the Ports-to-Plains corridor. However,
based on data from various local and federal sources on truck
shipments and exports through the Corridor’s three border crossings,
we have pieced together a picture that suggests the following
types of industries appear most likely to benefit from an improved
Corridor:
Agricultural
machinery and equipment and related products
Oil and gas
machinery and equipment and related products
Electrical
machinery and appliances
Leather and
textiles
Agricultural
shipments
While we might expect the effects
of highway investments on economic development to be well-defined,
they are not. Existing studies provide neither clear nor consistent
guidance on the spin-off industries that are likely to come from
Corridor development, or highway investment in general. Economic
development studies on transportation effects suggest manufacturing
and retail sectors are likely to expand in terms of employment.
Transportation feasibility studies suggest transportation and
services sectors are most likely to expand. Neither type of study
provides any useful information on the specific industries within
these broad categories that will benefit.
Given the paucity of direct guidance
from existing studies on the spin-off industries that can be expected
from highway investment in the Ports-to-Plains Corridor, Commonwealth
provides the following general conclusions about business development
effects.
Transportation-intensive
manufacturing companies are likely to gain from the travel efficiency
benefits described in the Ports-to-Plains feasibility study. These
include the set of manufacturing industries listed above.
There are
several categories of retail businesses that are likely to benefit
from improved transportation along the Ports-to-Plains corridor,
from local shops to restaurants to truck stops.
The transportation
sector includes various modes of transportation, warehousing and
distribution, logistics, and transportation support services.
Because the sector is so diverse, it is likely that all communities
along the corridor have the potential to benefit from at least
one industry in this category.
The services
sector covers a wide range of administrative, professional and
personal service categories. The type of services employment likely
to expand in a community depends more on the assets of that community
than the development of the
Corridor itself. In general, high-paying, professional services
are more likely to locate in metropolitan areas.
Improved
transportation will also benefit agricultural transport in many
communities through the same efficiency gains seen for the manufacturing
and trucking sectors.
To leverage transportation investments
fully, communities need to continue to address the variety of
issues, such as work force, education, quality of life, business
climate, and other factors, that affect business growth and economic
development.
CONCLUSIONS AND ACTION ITEMS
Organize
economic development strategies by segments along the Corridor,
focusing first on the rural and mid-size communities that both
want and need assistance and for whom Ports-to-Plains is a priority
project.
Establish
a focused set of Corridor-wide priority highway projects to pursue
with Congress for near-term appropriations. This study preliminarily
identifies a set of such projects reported to Commonwealth by
Corridor communities. Pursue these projects as a unified corridor
striving to obtain clear economic development objectives – not
as individual communities striving to obtain more money.
Define a
Corridor strategy to position the region for TEA-21 reauthorization,
following the same guidelines as for near-term appropriations.
Unified community support and a clear rationale will be necessary
to focus attention on Corridor needs.
If the Corridor
chooses to pursue Intelligent Transportation Systems projects,
focus first on safety issues under the Emergency Medical Services
(EMS) development track in the Rural ITS program. Whether seeking
earmarks or grant funding, act as a unified corridor, establish
proof of need, and identify regional partners with ITS experience.
Pursue with
congressional representatives and USDA officials the concept of
establishing a REAP Zone in parts or all of the Corridor. With
initial feedback, the Corridor coalition can then take the lead
on developing the concept to serve corridor communities in whole
or in part. Political support is the key to making this work.
Create a
Corridor-wide strategic plan for economic development. This report
is the first step in gathering relevant data and establishing
a common framework for examining economic development issues.
A full strategic plan to which a broad range of stakeholders from
Corridor communities commit is still necessary to define and ultimately
achieve economic development goals. This plan should also incorporate
non-transportation issues that are critical to economic development.
As described
above, preliminary target markets cover a broad range of opportunities
to match the varied location and character of the towns and cities
along the Ports-to-Plains Corridor. There are potential benefits
in most sectors, including manufacturing, transportation and warehousing,
retail, services, and agriculture. The specific types of activities
within these sectors that can expand in a given portion of the
Corridor depend on the characteristics of each location.
Full Version of the economic study:
Ports-to-Plains Economic
Development Research Project
-return to top-
