A FedEx Hub in the Triad

1
A FedEx Hub in the Triad?

• Weighing the Benefits and the Costs

2
List of Concerns

• Environmental Concerns
• Corporate Welfare
• Noise
• Traffic / Truck Congestion

3
Two Universal Issues

• The Lack of Involvement by the Citizenry in the
  Decision Making Process
• The Lack of an Unbiased and Thorough Cost /
  Benefit Analysis

4
FedEx Project Unveiled 1998

• Touted by the Airport Authority as an Economic
  Engine
• Proponents Rally Behind Trumpet Call of Jobs
  Jobs Jobs !!!
• County Commissioners Given 1 Hour Advance Notice
  of Decision

5
Chamber of Commerce Rushes to Provide Benefit
AnalysisThe Judd Report 1998

• Attempts to Quantify the Economic benefits of a
  Regional Cargo Hub
• Conclusion
• The Chamber of Commerce Projections for Growth
  were Overstated by 30
• Regional Technology Strategies (RTS) Report
  Page 3

6
Chamber Follows with Second Benefit
AnalysisThe RTS Report Nov. 1999

• It must be acknowledged up front that this
  report deals with probabilities and
  possibilities,
• not certainties
  page 1, RTS
• Our interviews and analysis suggest that it is a
  mistake to see FedEx as the sole driver of
  regional growth of transportation sensitive
  regional economies. page 63, RTS

7
Draft Environmental Impact Statement (DEIS)
April 2000

• Proponents claim it as true cost/benefit
  analysis of FedEx hub cites 16,000 jobs and
  4.4B in wages over 20 years
• Chamber says it validates their claim of
• High-tech downstream job growth

8
Reality of the DEIS Economic Message

• In Indianapolis, it would appear that cargo
  shipment capacity has not yet emerged as an
  important location factor in attracting new
  industry to this area. DEIS, Appendix E, page
  4-14.

9
National Economic Downturn Renews the Proponents
Economic Battle CryJobs at any Cost!

• Fact Traditional textile and tobacco employment
  is suffering from an economic downturn that is
  decades in the making.
• Conjecture FedEx will be an economic engine
  that will save the local citizens suffering from
  the current economic situation.

10
The Truth About the FedEx Hub Being an Economic
Savior for Laid-off Workers

• Fact The only guarantee by FedEx is 1500 jobs by
  2019 2/3 of which are Part-time 3rd shift paying
  11,000/Yr.
• (10/hr. X 20 hrs./wk. X 52 wks./yr.)
• It is unlikely that the Piedmont Triad will see
  a large number of high wage management jobs when
  the new hub opensMost of the management
  positions based in the Triad (probably less than
  50) will be experienced personnel imported from
  other FedEx locations.
• RTS page 10

11
McKinsey Report Report Paints Negative Picture
of Greensboros Economic FutureNovember 2000

• Conjecture Report claims shift towards service
  sector jobs and away from manufacturing, despite
  maintaining a lower than average unemployment
  rate, has resulted in a stagnation of per-capita
  income.
• The cost of lower per-capita incomes would be a
  decline in the tax base, a loss of political
  weight within the state, and less money for
  infrastructure investments, directly influencing
  the quality of life (for Greensboro).
  McKinsey Report page 18

12
Indianapolis Job Growth 1991-2000Service Sector
40.3Manufacturing 5.2Source United States
Bureau of Labor
13
Louisville Job Growth 1991-2000Service Sector
42.9Manufacturing 0Source United States
Bureau of Labor
14
What Should We BelieveConjecture or Historical
Fact ?

• New industry to the Louisville region has been
  blue collar and most growth has not been
  associated with the hub.
• State Rep Jim Wayne, 35th District, Louisville,
  KY responding to a question at a press conference
  in Greensboro, NC - 1/17/01

15
FedEx and Noise Weighing the Costs

• What is the price?
• Who will pay?

16
The Triad Today with Proposed Runway
17
Regions of Growth Northwest Corridor of Guilford
Co.Northeast High Point
18
DEIS Noise Conespublished in News Record
6.23.00-65dnl
19
What is the meaning of 65dB DNL

• DNL stands for Day/Night Level and is the
  computer calculated weighted average of noise for
  an area over a period of 365 days. 65dB is the
  level at which the FAA has determined that the
  noise is unbearable for human residential areas.
• 55dB is the EPA level

20
Indianapolis Contours Proven Wrong
21
Noise in Indianapolis

• Jet noise in Indianapolis disturbs residents of
  some neighborhoods more than five miles from the
  runway. Are Triad planners ready for the
  possible crescendo? News Record 11.9.99

22
UPS Hub in Louisville Compared to FedEx Hub in
Guilford County

• Louisville
• UPS projected 122 flight operations by 2010
  (Currently 30 over estimate).
• UPS promised to have their fleet 100 outfitted
  with Stage 3 engines by 1995.
• 90 of night-time flight operations will occur
  to the South.
• Source FEIS Louisville April 1993
• Triad
• FedEx projects 126 flight operations by 2009.
• FedEx promises to hush-kit all of their fleet
  by 2005 (FAA requirement hush-kits are not as
  quiet as Stage 3 aircraft).
• 95 of night-time flight operations will occur to
  the Southwest.
• Source DEIS PTIA April 2000

23
Louisville Noise Complaints
24
Nighttime Arrivals
25
Historically, How Well Have These Computer Models
Projected the 65dB Noise Cones ?

• Noise Mitigation Costs in Louisville, KY
• Source Final Environmental Impact Study
  Louisville, KY April 1993

26
Louisville Contour Overlays
27
Noise Ovalsdescribed by State Rep Jim Wayne
28
Arrival Profiles
29
Louisville Contours/Arrivals
30
Swath of Disturbance
31
DEIS Projections for Condemnation

• Plan W-2A (the preferred alternative) is
  projected to require 443 homes in Guilford County
  to be destroyed by 2009
• Given the historical data for Indianapolis
  Louisville and Memphis of the EIS drastically
  underestimating the impact of noise on the
  community..
• How Many?
• Who Will Pay?

32
FedEx Intentions

• Without seeing the business plan of FedEx, we
  cannot ever know how far they want to expand.
• With the new arrangement between the US Postal
  Service and FedEx, the planned volume originally
  stated is likely to be exceeded before the first
  plane takes off.

33
FedEx Intentions

• Given the strategic nature of the Mid-Atlantic
  Hub, FedEx will require assurance we can operate
  unrestricted at GSO on a 24 hour per day 7 days
  per week basis and will not be subject to curfews
  or other interruptions to air or ground traffic
  and hub operations. Tony DiGirolamo, Manager
  Airports, FedEx
• Letter to Piedmont Triad Airport
  Authority April 3, 1998

34
Ghosted Flight Tracks over Triad