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THE EAGLERAIL HAS LANDED: CEO MIKE WYCHOCKI PUSHES A “NO BRAINER” WHEN IT COMES TO MOVING SHIPPING CONTAINERS AT CONGESTED PORTS

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THE EAGLERAIL HAS LANDED: CEO MIKE WYCHOCKI PUSHES A “NO BRAINER” WHEN IT COMES TO MOVING SHIPPING CONTAINERS AT CONGESTED PORTS

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It’s amazing where new logistics solutions come from. They are usually born by veteran shippers with visions on how to improve an existing operation. Or it can be a customer or customers seeking help in conquering a specific challenge that eventually resonates throughout the industry.

Then there is the inception of Chicago-based EagleRail Container Logistics’ signature solution. It can be traced to a pitch meeting for a new monorail in Brazil that was attended by a port authority official who was there more as a cheerleader than a participant.

Watching a Chicago marketing man’s PowerPoint presentation about his company’s passenger monorail system to local leaders in São Paulo eight years ago, the port representative, Jose Newton Gama, marveled at how the magnetic levitation (Maglev) trains holding people would be suspended under overhead tracks.

Then the Brazilian known by friends as Newton raised his hand.

“Excuse me?” he asked the Americano. “Could your system be adapted to hold shipping containers?”

That had never occurred to project designers, whose monorail cars for passengers are much lighter than would be required for cargo containers hauled by ships, trucks and freight trains. But the marketing man shared Gama’s question with his colleagues in the Windy City, and that planted the seed that eventually bore EagleRail Container Logistics.

Chief Executive Officer Mike Wychocki was an early investor who eventually bought out that marketing man, but the first EagleRail system is named “Newton” after the Brazilian who now sits on the company’s board of advisors. “He’s a great guy,” says Wychocki during a recent phone interview. “Newton is our biggest cheerleader.”

Wychocki’s no slouch with the pom-poms himself, having pitched EagleRail at 40 ports in 20 countries over the past five years. His company, which has offices around the world, is developing its first prototype in China, and studies are underway at six ports as EagleRail sets about raising $20 million in capital. (The window for small investments had just closed when Wychocki was interviewed. His company has since shifted its focus to large investors.)

The way ports have operated for decades left no need for a system like EagleRail’s. Big ships dock, cranes remove containers stacked on their decks and each box is then moved onto the back of a flatbed truck that either hauls it to a distribution center or an intermodal yard. Until recent years, no one really thought of disrupting the process because, as Wychocki puts it, “you could always find cheaper truck drivers.”

However, truck driver shortages, port-area air pollution and congestion caused by the time it takes to load and unload ever-larger ships have prompted serious soul searching when it comes to short hauls. Expanding the size of ports is often not an option due to the cities that have grown to surround them. This has led to the creation of large container parks for trucks and/or freight trains within a few miles of ports, but getting boxes to those remains problematic—at a time when megaships are only making matters more difficult.

“There is an old saying that ports are where old trucks go to die,” says Wychocki, who ticks off as problems associated with that mode of moving containers pollution, maintenance and fuel costs, as well as the issues of public safety because some drivers essentially live inside of their vehicles, which can attract prostitution and leave behind litter and human waste. Adding even more of these dirty trucks would necessitate more road building, which only adds to environmental concerns.

With ground space at ports a constantly shrinking commodity, tunneling underground may be viewed as an option. But Wychocki points out that many ports have emerged on unstable ground like backfill, and water, power and sewer lines are usually below what’s under the streets beyond port gates. The idea of a hyperloop has been bandied about, but it would require emptying shipping containers at the port, loading the contents into smaller boxes, sending those through to another yard, and then repacking the shipping containers on the other side. “That defeats the whole point” of relieving port congestion, the EagleRail CEO says.

Ah, but every port has unused air space, which is what Wychocki’s company seeks to exploit. “If an Amazon warehouse can lift and shuttle packages robotically,” he says, “why not do the same with a 60,000-pound package? Go to a warehouse. See how Amazon works with packages. They use overhead light rails. It’s an obvious idea, so obvious. It’s a no brainer when you think about it.”

Yes, Amazon also uses drones, but can you imagine the size it would have to be to carry a 60,000-pound shipping container? Wychocki sees a suspended container track as an extension of the cranes on every loading dock worldwide, which is why EagleRail systems are also all-electric and composed of the same crane hardware to avoid snags when it comes to replacing parts.

However, Wychocki is quick to note EagleRail is not a total solution when it comes to port congestion. He calculates that among the short-haul trucks leaving a port, 50 percent are going to 500 different locations, many of which are different states away, while the other half is bound for just a couple nearby destinations. EagleRail is geared toward the latter, and the problem with getting containers to them “is not technological; it’s who controls the five kilometers between the port and the intermodal facility,” he says.

Lifting equipment at ports “is exactly the same in all 200 countries,” he adds. “The part that is not the same is the back end. What is the port’s configuration? Where do the roads come in? What we do is form a consortium and build it with each local player, such as the port authority, the road authority, the national rail company, the power company. Getting everyone involved helps get procurement and environmental rights of way.”

He concedes that getting everyone on board “varies by location,” but when it comes to environmental concerns “everyone’s kind of wanting to do this because it means fewer trucks, and the power companies would prefer the use of electricity (over burning diesel). It sounds harder than it is to get everyone rowing in the same direction.”

Wychocki points to another bonus with EagleRail: It allows for total control of one’s intermodal yard because containers come and go on the same circular route—all day long. “We take this on as a disruptive business model,” he says, noting that short-haul trucks generally involve the use of data-chain-breaking clipboards and mobile phones. EagleRail systems track containers on them in real-time, rolling in all customs paperwork and billing invoices automatically.

“It’s amazing, I just came from the Port of Rotterdam, where I was a keynote,” Wychocki says. “Even the biggest ports in the world like Antwerp were saying, ‘This is great. Why isn’t anyone else doing it?’”

Actually, EagleRail accidentally created direct competition. Wychocki explains that during the initial design phase, his company worked with a foreign monorail concern whose cars used what were essentially aircraft tires rolling inside a closed channel. Concerns about maintaining a system that would invariably involve frequently changing tires—and thus slowing down operations—caused EagleRail to reject that design in favor of another third-party’s calling for steel-on-steel wheels. The designer with tires is pressing on with its own system and without EagleRail.

“I’m glad we didn’t go that route,” says Wychocki, who nonetheless expects more serious competition once EagleRail systems are up and running. Fortunately for the company, there are plenty of ports bursting at the seams that cannot wait that long. Wychocki says a question he invariably gets after pitching EagleRail is: “Where were you 10 years ago? Usually, there is an urgency.”

That’s why “our goal was to get out of the gate fast, build market share and our brand and create a quasi-franchise network,” says Wychocki, whose business model has EagleRail owning 25 percent of a system while the port and other local entities own the rest.

He estimates that within 10 years, 12 EagleRail systems will be operating. If that sounds like a pipe dream, consider that his company’s newsletter boasts 3,000 subscribers before a system is even up and running. Wychocki does not credit “brilliant marketing” for that keen interest. “It’s because every port’s problems are getting worse. Everyone is squealing about what to do with these giant ships that cannot be unloaded fast enough. They are desperate.”

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Archives, Features, Global Trade Daily, Ocean Ports, Stories, Top Ports

PORT CITY REVIEW: THESE 20 SEAPORT COMMUNITIES HELP DRIVE THE U.S. ECONOMY

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Ports are “crucial to the economy,” Texas economist Ray Perryman wrote in 2017. “Ports generate substantial business activity through their operations, but those benefits are dwarfed by the huge importance of water transportation to other industries.” In this survey of 20 U.S. port cities, we look at various engines of economic development and see how they tie into the seaport.

TAMPA, FLORIDA

Since 2009, the Tampa Bay Economic Development Council (EDC) has acted as the is the lead designated economic development agency for Hillsborough County as well as the cities of Tampa, Plant City and Temple Terrace. The EDC offers a variety of incentives (infrastructure, workforce training, targeted industry and special opportunities) and tax breaks for companies that create high-wage jobs in high-value industries. Companies can also apply for workforce training grants and tax exemption programs. In addition, the Tampa Bay EDC also aids those wishing to take advantage of real estate opportunities at Port Tampa Bay (the largest deepwater port in the state), Port Redwing and Port Ybor.

BALTIMORE, MARYLAND

The Baltimore Development Corporation (BDC) serves as the administrator of that city’s Foreign Trade Zone (FTZ). The FTZ offers duty-free treatment for companies importing and exporting goods, and it saw nearly $20 billion worth of shipments in 2017. Much of that passed through the Port of Baltimore, which is one of the 10 busiest in the nation. According to the BDC, “With merchandise such as cars, paper and steel, 2017 saw the total FTZ international revenue rise from $44 million in 2016, to more than $396 million in 2017.” The BDC also provides a number of programs for entrepreneurs, small businesses and tax credits for supermarkets willing to open or renovate in targeted areas of the city.

MATAGORDA COUNTY, TEXAS

Matagorda County’s two shallow draft ports—Port of Bay City and Port of Balacios—are part of what makes the area’s location so desirable, according to the Matagorda County Economic Development Corp. (EDC). Both ports have nearby parcels available for long-term lease and development. Those wishing to do so may qualify for a host of incentives offered by the Matagorda County EDC, including tax abatements, an industrial revenue bond program, the Texas Enterprise fund for job creation, permit assistance, special discretionary loans, sales and use tax exemptions and various other training and capital funds.

VENTURA COUNTY, CALIFORNIA

Starting in 2019, the Port of Hueneme began a partnership with the Ventura County Economic Development Collaborative (EDC), Matter Labs and Naval Base Ventura County known as MAST (Maritime Advanced Systems & Technology). MAST is a laboratory at the port to incubate new technology and attract venture capital. “By leveraging the unique geographic, operational and environmental assets located at the Port of Hueneme, MAST invites entrepreneurs with an optimized solution a surrounding for sustained research, experimentation and test programs,” port officials say. This fits in perfectly with the EDC’s mission of promoting job growth through start-up assistance, special financing packages and workforce training programs.

SAVANNAH, GEORGIA

The Savannah Economic Development Authority (SEDA) provides a dizzying array of tax incentives to companies wishing to locate or expand in Savannah. The organization’s Business Retention Action Team (BRAT) also offers workforce training, assistance on decreasing energy use, logistics and engineering information and even free pre-OSHA audits. Because the need for warehousing space to accommodate the ever-growing Port of Savannah was consuming so much land, in 2019 SEDA developed the 719-acre Savannah Manufacturing Center. To attract tech firms, the project includes a host of county and city tax exemptions, according to an Oct. 23, 2019, story in Worth.

MEMPHIS, TENNESSEE

Created in 2011, the Economic and Development Growth Engine (EDGE) for Memphis and Shelby County coordinates public resources and incentives for economic growth in those municipalities. EDGE manages Foreign Trade Zone 77, provides special business loans and tax incentives and also manages the Memphis Port Commission, which oversees the Port of Memphis. In November 2017, EDGE approved a $327,500 contract to develop a master plan for the port. Produced nearly a year later, that plan calls far a variety of infrastructure upgrades to ensure that the port will still be in use 20 to 50 years from now.

FORT LAUDERDALE, FLORIDA

The Greater Fort Lauderdale Alliance has long sought to strengthen and diversify that city’s economy through services and incentives aimed at helping companies expand or relocate there. The organization helps with business location, market research and workforce training. GFLA also supports various international trade initiatives, in hopes of increasing imports and exports in Fort Lauderdale. Port Everglades, which plays a key role in global trade initiatives and is the preeminent seaport in Florida in terms of revenue, was responsible for $34 billion in economic activity in 2018, according to the port authority.

NEW YORK CITY, NEW YORK

“We are New Yorkers, working for New Yorkers,” say the officials who run the New York City Economic Development Corp. (NYCEDC). The NYCEDC prides itself on helping to grow and help companies become more sustainable. In 2015, the NYCEDC took a big step in doing this by signing a lease agreement with the City of New York to develop the old South Brooklyn Marine Terminal at Port NYC. Three years later, in May 2018, NYCEDC announced that their new Sustainable South Brooklyn Marine Terminal would serve as a new and major shipping hub that would create 250 near-term jobs, expand future growth and job creation and eliminate the need for 11,000 truck trips every year.

LOS ANGELES, CALIFORNIA

The Port of Los Angeles is the busiest seaport in the western hemisphere. As such, the Los Angeles Economic Development Corp. (LAEDC) provides a number of services to ensure that the port—and those companies and workers who rely on it—continues to grow. It publishes a variety of reports each year on the city’s international trade outlook, assists companies in finding international trade opportunities, brings international investment into LA through its World Trade Center Los Angeles affiliate and helps ensure low-interest financing is available for projects.

WILMINGTON, NORTH CAROLINA

Since 1956, Wilmington Business Development (WBD) has worked to bring more companies to the region. It does this through market research, partnership development and technical assistance. There’s no better example of this than WBD’s recent partnership with Chesterfield LLC and the Port of Wilmington to construct a 425,000-square-foot, build-to-suit facility at the port, which will handle both imports and exports. As a marketing partner in the venture, WBD will promote the project and attract tenants.

PROVIDENCE, RHODE ISLAND

Through a partnership with the U.S. Department of Commerce and the John H. Chafee Center for International Business, the Rhode Island Commerce Corp. (RICC) assists Providence companies in entering export markets. This allows companies to join trade missions, learn how to market themselves internationally and get specialized training. Though the Port of Providence (ProvPort) is relatively small, it has been a commercial seaport since the 1600s, which is why RICC partnered with the port in 2017 to implement a bond measure that would expand the port’s size and influence.

MOBILE, ALABAMA

For the past three decades, the Economic Development Partnership of Alabama (EDPA) has worked to help companies grow in the state, and compete throughout the world. It offers assistance for start-ups on obtaining special credits, help with the various free trade zones around the state and information on the AlabamaSAVES loan program to make it easy to get energy efficient. EDPA also provides help for those companies wishing to compete globally—which is made vastly easier by the Port of Mobile, which is responsible for more than 134,000 jobs and more than $22 billion in economic impact.

NEW ORLEANS, LOUISIANA

The Port of New Orleans plays an outsized role in that region’s economic growth. It supports nearly 120,000 jobs and almost $30 billion in revenue, according to an April 15, 2019, article in Biz New Orleans. Greater New Orleans, Inc. (GNO), which has long assisted companies in the region that wish to grow or compete internationally, recognizes that New Orleans’ growth simply couldn’t happen without the port. “In recent years, the Port of New Orleans has emerged as not only a record-breaking cargo and cruise facility, but remains an economic development powerhouse,” said GNO President Michael Hecht in the Biz New Orleans article. “Thanks to the Port’s leadership and partnership, New Orleans is well on its way to reclaiming its economic and maritime preeminence.”

OAKLAND, CALIFORNIA

The East Bay Economic Development Alliance (EDA) has been assisting the Port of Oakland (which today handles 99 percent of the containerized goods that move through Northern California) to grow for the past three decades. The EDA supported the port’s need to dredge the harbor in 1991 and again in 2009, meeting with conservationists, shipping interests and others to build a consensus. In 2003, the EDA also met with stakeholders to resolve the transportation impacts created by the port’s growth. The result was a recommendation to move the transportation and distribution facilities that support the port.

NORFOLK, VIRGINIA

The Hampton Roads Economic Development Alliance (EDA) has long assisted both domestic and international firms wishing to invest in the Norfolk area. The EDA provides all manner of services and assistance in finding a location, banking, obtaining permits, staffing and auditing. The EDA can also provide help for those companies wishing to take advantage of the three lucrative tax incentives offered by the State of Virginia to firms that use the Port of Norfolk: the Port Volume Increase Tax Credit, Barge and Rail Use Tax Credit and International Trade Facility Tax Credit.

BROWNSVILLE, TEXAS

Since 1992, companies wishing to locate or expand in Brownsville have been able to call upon the services of the Brownsville Economic Development Corp. (BEDC). The BEDC offers qualifying firms job creation incentives that range from $2,000 to $10,000 per each job created. Bringing together business leaders, location consulting and permit assistance are some of the other services the BEDC offers to companies in Brownsville. Critical to the city is the Port of Brownsville, the only deepwater port on the U.S./Mexico border, which the port authority said was responsible for $3 billion in economic activity in 2018.

MIAMI, FLORIDA

The Economic Development Council (EDC) of South Miami-Dade formed in 1993, following the destruction wrought by Hurricane Andrew. In addition to assisting companies in moving to Miami or expanding their current location, the EDC provides firms with market information as well as assistance in qualifying for tax incentives. Another key role of the EDC is focusing on “the betterment of any deficiency in the regional infrastructure which is a hindrance to economic vitality.” PortMiami, one of the most important elements in the Miami economy, impacts more than 334,000 jobs and supports about $43 billion in overall economic activity.

CLEVELAND, OHIO

Job creation in Northeast Ohio has been at the forefront of the Greater Cleveland Partnership (GCP) since its founding in 2004. The organization advocates for Cleveland businesses, while also providing them with vital assistance in getting access to capital, securing tax incentives and finding and retaining staff. In 2018, the GCP helped local companies create nearly 2,000 jobs, while retaining more than 12,000. The Port of Cleveland, which is the hub of about $3.5 billion in economic activity for the region, supports nearly 20,000 jobs.

PHILADELPHIA, PENNSYLVANIA

The Philadelphia Industrial Development Corp. (PIDC) has leveraged more than $25 billion in investment and helped create hundreds of thousands of jobs since its founding in 1958. It manages commercial and industrial real estate, delivers grant funding for development projects, provides resources for companies located in underserved, low-income parts of the city and sponsors investment opportunities in projects that qualify for the U.S. Immigration Investor Program. PhilaPort has been central to the growth of Philadelphia, returning more than $70 million in revenue to the city and providing more than 10,000 jobs.

ST. LOUIS, MISSOURI

It’s remarkable just how much the STL Partnership accomplishes in the name of economic development. The organization manages opportunity zones to encourage urban investment, provides workforce development, helps companies engage on the global market, provides tax incentives and loan assistance, runs innovation centers for startups and assists companies with site selection. The STL Partnership and the St. Louis County Port Authority have been partners since the Mississippi River flood of 1993. Then, they joined to develop the Lemay Comprehensive Plan, which helped redevelop the old National Lead site and establish a community reinvestment fund.

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KC SmartPort Shares Leading Differentiators for its Ecommerce Surge

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Known as the “hub for food logistics” in the Midwest, the Kansas City region boasts a unique approach to economic development. KC SmartPort – a nonprofit economic development organization – focuses on attracting freight-based businesses to the region through its streamlined efforts in workforce development, real estate opportunities, and thriving logistics-focused operations. The Kansas City region recently reported substantial growth in ecommerce and distribution companies establishing operations in the area with these companies planning to invest $1.3 billion and aiming for the creation of seven thousand jobs. KC SmartPort president Chris Gutierrez and his team attended the Dallas RILA/LINK 2020 conference as exhibitors and shared the latest and greatest developments emerging in the Kansas City region.

“With online sales increasing every year, companies have really been focusing on their omnichannel strategy. The Kansas City region is centrally located and offers a robust transportation infrastructure from road, air, rail and water, ultimately supporting the ability for businesses to reach 88-90 percent of the population in about two days. This really lends itself as a successful strategy around ecommerce,” said Chris Gutierrez, president of KC SmartPort.

“Since 2012, we’ve had over 40 million square feet of industrial buildings built primarily on spec because the ecommerce companies will go through a peak season and if they hit their numbers, they need to be in the next building within a certain time frame to hit next year’s peak. If they don’t have a building to move into, then the opportunity is lost. That’s something our region has been very successful in supporting,” he added.

Among big-name ecommerce and distribution companies that made the move to the Kansas City region in 2019 include Wal-Mart, Hostess, Amazon, CVS Pharmacy, Overstock.com, Tool Source Warehouse, and more. Part of this surge in ecommerce, automotive, and retailers is dually supported by the region’s balancing of business and workforce development efforts.

“What we are doing locally is a three-step process. First, we create an awareness buzz at the elementary and high schools and community colleges around supply chain jobs that serve as career opportunities with great benefits and growth options rather than just filling a position. The second part of local efforts involves public transportation, rideshare, and other mobility solutions to support getting the employee to the job site.”

“The third leg of this approach is encouraging employers to critically think about workplace culture. We take it a step further and educate employers of the importance of the first week during onboarding, eliminating the desire to go to the next company offering a quarter more in pay but offering a potentially more satisfying culture. If the company offers a healthy culture, it makes a huge difference, specifically with non-tangible things that add value to the employee experience.”

These multi-layered efforts not only support the existing workforce and growth in economic development but serve as proactive solutions for future workforce generations in Kansas City. More than 2.3 million people in the region rely on the unique economic development team covering both Kansas and Missouri. The Kansas City Area Transportation Authority (KCATA) serves as a bi-state authority covering a broader regional area while addressing large-scale concerns. This partnership serves as a major differentiator in the region for businesses seeking a myriad of options in amenities, incentives, and transportation.

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Chris Gutierrez is the President of KC SmartPort, Inc., a KCADC affiliate organization focused on attracting freight based economic development to the greater Kansas City region and providing thought leadership to the supply chain industry in Kansas City. Chris has been active in economic development and logistics for over 30 years. He joined KC SmartPort in 2003.

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The Fastest-Growing Cities in the U.S.

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Recently released data from the U.S. Census Bureau shows that population growth in the U.S. has reached its lowest level since 1937 despite recent gains in immigration. The long-term downward trend is the result of a declining birth rate and increased deaths, especially among America’s aging white population.

While population growth has slowed at the national level, population changes at the state and city level vary widely. Between 2017 and 2018, all but nine states saw their populations rise. Texas, Florida, California, and Arizona experienced the largest absolute population increases. At the other end of the spectrum, New York, Illinois, West Virginia, and Louisiana experienced the largest absolute population decreases, largely as a result of residents moving out-of-state.

While Texas, Florida, and Arizona also lead the country in net domestic migration (people moving in from other states), California ranks second only to New York for having the most people leaving the state. New Jersey and Illinois are also prominent among the long list of states losing swaths of residents to other states.

In order to determine the fastest-growing U.S. cities, researchers at 360 Quote analyzed data from the U.S. Census Bureau over a five-year period. Population growth was measured as the percentage increase or decrease in the population from 2013 to 2018. Researchers also calculated population changes by education level, age, and race/ethnicity to provide additional insight into the evolving demographics of each city.

Here are the fastest-growing large U.S. cities:

The results for small and midsize cities, as well as a detailed methodology for the analysis, can be found in the original report here: https://www.carinsurancecompanies.com/fastest-growing-cities/

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Breakbulk Europe to Return to Bremen in 2021

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Breakbulk Europe, the world’s largest event for the project cargo and breakbulk industry, will return to Bremen, Germany, for the fourth consecutive year in 2021 at Messe Bremen from 18-20 May.

“It’s a great pleasure to be returning to Bremen in 2021, a city that has gone above and beyond to welcome breakbulk and project cargo professionals from more than 3800 companies,” Nick Davison, Portfolio Director for Breakbulk and CWEIME events, Hyve Group (formerly ITE Group) said. “The city of Bremen has proved to be a good fit for the Breakbulk attendees with its unique blend of historical charm, modern amenities, maritime environment and visitor affordability.”

Breakbulk Europe has grown significantly since the move to Bremen in 2018, and with over 120 countries represented, its reach embraces the world. Exhibitors at the 2019 event overwhelmingly demonstrated their satisfaction with Breakbulk Europe, Messe Bremen and the city itself, by rebooking 89 percent of exhibition space for 2020 by the end of the show. Along with many repeat exhibitors, the 2020 edition will feature 70 new companies, such as Sarens, CEVA Logistics, DP World, and Airbus, who has chosen Breakbulk Europe to promote their Beluga XL aircraft.

“We are committed to bringing a world-class event to this industry that is critical to the world’s economy,” Davison said. “As we move further into this decade, we will consider alternate locations for 2022 and beyond to deliver new markets and fresh thinking, but for now, Bremen is the right choice and we would not hesitate to return in the future.”

The 2021 announcement comes three months before the opening of Breakbulk Europe 2020, and already the indicators point to another success. Online registration is tracking 13 percent ahead compared to this time last year. A strong lineup of partnerships has been secured, including companies for each of the three content areas: Masters Arena by Aurelis Real Estate Service, Main Stage by Port of Gdańsk and Tech & Innovation Hub by Erhardt. New to the 2020 experience will be a pair of professional workshops focused on risk management and chartering essentials, Education Day for local students and those new or looking to enter the industry, and the first Europe-based Women in Breakbulk breakfast, part of Breakbulk’s global networking platform for female professionals.

About Breakbulk Europe

Breakbulk Europe has become the global hub for the industrial project supply chain, including the world’s foremost manufacturers, oil & gas companies, EPCs, carriers, ports, logistics firms, specialized transporters and related service providers. This year’s event is expected to bring together around 10,000 professionals from more than 120 countries. To request exhibiting and sponsorship information and to register for the event, visit europe.breakbulk.com.

Breakbulk Europe is one of four Breakbulk global events, along with Breakbulk Middle East in Dubai, 25-26 Feb. 2020, Breakbulk Asia in Shanghai, 18-19 March 2020 and Breakbulk Americas in Houston, 29 Sept.-1 Oct. 2020.

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Hyve Group plc is a next generation FTSE 250 global events business whose purpose is to create unmissable events, where customers from all corners of the globe share extraordinary moments and shape industry innovation.  Hyve Group plc was announced as the new brand name of ITE Group plc in September 2019, following its significant transformation under the Transformation and Growth (TAG) programme. Our vision is to create the world’s leading portfolio of content-driven, must-attend events delivering an outstanding experience and ROI for our customers.

Press contact: Leslie Meredith -Marketing  & Media Director, Breakbulk Events & Media

E: Leslie.Meredith@breakbulk.com

T: +1 801 201 5971

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Archives, Foreign Trade Zones, Global Trade Daily

The Logic of Qatar’s Logistics Ambitions

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Put simply, logistics is a global mega-business. Its processes are time-sensitive, quality-centered, customer-driven and efficiency-bound. An array of functional, operational and legal instruments shape the flow of a genuinely 24-hour industry. In response, the powerhouses of the corporate logistics sector – some of whom have been around for centuries – have near-constantly adjusted and innovated business strategies to stay at the top of their industry, typically for the good of all stakeholders.

However, logistics is not only about companies and their business activities. Superior logistics capabilities have become an important strategic asset for states aspiring to play a more prominent role in an increasingly interconnected world. In this respect, China has become something of a role model. Beijing identified early in the country’s economic development the need for facilities capable of inserting its output into the global marketplace. Since then, China’s logistics know-how has evolved to the extent that newer infrastructure projects such as Ningbo Port are on a par with more established hubs like Singapore.

Most Gulf States have factored the buildup of logistics facilities into their respective National Visions. These programs focus on reducing reliance on energy exports as the primary source of national income and diversifying economies beyond the exploitation of natural resources. As things stand, however, some states more than others are in a better position to become major global logistics centers with facilities to match. These include Qatar, for at least three key reasons.

First, since the start of the 2017 blockade by several Gulf Cooperation Council (GCC) states and others, Qatar has held the moral high ground by not responding in kind. Rather than cutting off supplies to blockading states, Doha has continued to fulfill its contractual obligations. The country has also called on allies and international organizations to help resolve the dispute with its neighbors. In doing so, Qatar has sent a strong signal to multinational companies seeking effective logistical hubs that their businesses will not suffer in the face of ongoing regional tensions.

Second, the blockade has demonstrated Qatar’s remarkable ability to adjust supply chains rapidly to meet the needs of the state and its 3million+ citizens and residents. Prior to the crisis, several now-blockading countries accounted for over 90% of Qatar’s milk and dairy supplies. Imports of these products collapsed almost overnight. However, in the space of just 4-6 weeks, Doha had made up for this shortfall by sourcing almost 90% of its milk and dairy products from 20 countries. Qatar’s ability to diversify its global supplier base at breakneck pace would not have been possible without effective resilience planning and adaptive logistics capabilities.

Third, Qatar is not only determined to become a global trading hub but also to attract the type of foreign direct investment that will take its logistical capabilities to the next level. Such ambitions require a more intensive network of international partners collectively doing business in and out of Qatar with relative ease. To assist, a radical overhaul of customs processes and systems to support future growth in these areas is now underway. Streamlined legal frameworks are also widely expected to attract greater foreign interest in the country’s logistical capabilities.

Qatar’s recently-established free zones perfectly highlight the country’s logistical strategies in action. Located close to Hamad International Airport and Hamad Port, both are designed to attract companies seeking a stronger regional presence and infrastructure that serves trading routes between Asia and Europe. In keeping with free zones around the world, they also offer a range of benefits, including zero corporate tax, seamless administration, and unrestricted capital repatriation. However, financial (and related) incentives are by no means the only tactics employed to attract and retain business.

A defining feature of the most successful free zones is their ability to encourage innovation from the companies that make their facilities home. For example, DHL Express’s relocation to the airport free zone at Ras Bufontas will be accompanied by the development of a new product that brings express bulk logistics process capabilities to Qatar and upper Gulf region. In an effort to enhance maritime logistical capabilities, the second free zone at Hamad Port’s Um Alhoul will develop a chemical cluster to encourage innovative logistics approaches relevant to this important process industry.

Taken together, Qatar’s stealthy response to the blockade and determination to become a global logistics hub chimes with its historical reputation for accepting and taking calculated risks. When Doha decided to construct Ras Laffan Industrial City in order to exploit Qatar’s vast natural energy resources, it did so knowing that its development would irreversibly change the economic structure of the country. This required a level of courage that many larger countries remain unwilling to demonstrate on the global stage. The same rule of thumb also applies to Qatar’s determination to increase its global connectedness via high-quality logistics capabilities.

This ambition has not only had a profound impact upon Qatar’s economy but also its higher education sector. Academic programs in Logistics and Supply Chain Management (LSCM) are under development at several academic institutions across the country. Their emergence in turn reflects Qatar’s growing demand for expertise in the fields of logistical planning, strategic supply chain management and operational management. To this end, course offerings by Hamad Bin Khalifa University’s (HBKU) Division of Engineering Management and Decision Sciences (EMDS) are among the most advanced, with alumni already developing promising careers in the country’s burgeoning logistics sector.

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Frank Himpel is a faculty member of the Engineering Management and Decision Sciences division at College of Science and Engineering at Hamad Bin Khalifa University in Qatar. Prior to moving to Qatar with his family in 2018, Frank served as a professor of business administration and logistics in Germany, where he also received his academic degrees. His research into aviation and air transportation management has taken him to several countries around the world.

 This article is submitted by the HBKU Communications Directorate on behalf of the author. The views expressed are the author’s own and do not necessarily reflect the University’s official stance.

Hamad Bin Khalifa University (HBKU), a member of Qatar Foundation for Education, Science, and Community Development (QF), was founded in 2010 as a research-intensive university that acts as a catalyst for transformative change in Qatar and the region while having global impact. Located in Education City, HBKU is committed to building and cultivating human capacity through an enriching academic experience, innovative ecosystem, and unique partnerships. HBKU delivers multidisciplinary undergraduate and graduate degrees through its colleges, and provides opportunities for research and scholarship through its institutes and centers. For more information about HBKU, visit www.hbku.edu.qa.

Entrepreneurs
Archives, Global Trade Daily, Special Reports, State Spotlight

Metros With the Most Successful Entrepreneurs

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Many Americans dream of quitting their job and becoming their own boss. Whether the goal is to live the laptop lifestyle or turn a creative pursuit into a full-time business, entrepreneurship offers flexibility and excitement, but it is not without risks. While the potential upside of starting a successful business is appealing, it often takes years for a new firm to become profitable, and many entrepreneurs do not earn as much as they did in their previous jobs. According to data from the U.S. Census Bureau, the median annual income for full-time entrepreneurs is $50,000, which is the same as the median income for all full-time workers.

At a more granular level, full-time entrepreneurs (defined here as self-employed workers in their own incorporated or unincorporated businesses) tend to report higher incomes than full-time employees at for-profit businesses. However, the typical full-time entrepreneur makes less than both full-time employees of non-profit organizations and full-time government workers. Interestingly, Census data shows that federal employees enjoy the highest median income at $65,000 per year, followed by non-profit employees at just under $53,000.

While nationally the median income for entrepreneurs is the same as the median income for all workers, there are big differences at the state and city level. At the high end, entrepreneurs in Rhode Island and North Dakota have median incomes that are 28.3 and 20.0 percent higher, respectively, than the median income of all workers. On the low end, entrepreneurs in Vermont and Delaware have median incomes that are 18.8 and 16.7 percent lower, respectively, than that of all workers.

To determine the metropolitan areas with the most successful entrepreneurs, researchers at ZenBusiness analyzed data from the U.S Census Bureau. The researchers ranked metros according to the income premium for entrepreneurs, which is defined as the percentage difference between the median income for full-time entrepreneurs and the median income for all full-time workers.

Here are the top 15 large metropolitan areas with the most successful entrepreneurs:

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For more information, a detailed methodology, and complete results for all metros, you can find the original report on ZenBusiness’s website: https://www.zenbusiness.com/blog/cities-with-the-most-successful-entrepreneurs/

suffolk
Archives, Global Trade Daily, Ocean Ports

PORT OF VIRGINIA PUT SUFFOLK ON THE COFFEE MAP

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Coffee’s contribution is not peanuts

Established in 1742, the little town of Suffolk, Virginia served as a port along the Nansemond River in Virginia’s Tidewater region, eventually becoming a hub for railroad transportation. An Italian immigrant put Suffolk on the food production map, establishing the Planters Nut and Chocolate Company in 1912. A Peanut Queen is still crowned at the annual peanut festival.

These days, Suffolk has a newer claim to fame in the food industry. Home to several large coffee roasters including Massimo, Zanetti USA, Keurig Green Mountain, J.M. Smucker — and soon — Peets Coffee, Suffolk has become the most caffeinated city east of the Mississippi. The coffee industry has built out a cluster of related activities that generate significant employment and revenue for the people of Suffolk.

A deep commitment to Virginia coffee

Until the 1960s New York City was the undisputed home to the coffee industry. Since then, coffee has been imported through a variety of ports on the East Coast and elsewhere throughout the country, including the ports of New Orleans, Houston, Los Angeles and, of course, Seattle which is the home of Starbucks.

How did Suffolk become a coffee epicenter for the East Coast? Location and maritime advantage. Suffolk is 30 miles west of the Port of Virginia, which was the first to accept the much larger neo-Panamax ships transiting the expanded Panama Canal beginning in 2016. Port of Virginia has embarked on a $700 million expansion project of its own. By 2025, it will have a 55-foot channel depth, making it the deepest port on the East Coast, and will be able to handle an additional one million cargo containers at two of its terminals.

Centrally located on the eastern seaboard, Port of Virginia is capable of serving the major population centers east of the Mississippi. The ports of Baltimore, Savannah, Charleston and Virginia together now account for about one-third of all the green (unroasted) coffee imported into the United States. Suffolk is conveniently located to all of them.

Roasting the competition

Suffolk’s rise to roasting prominence started with one company – Hills Bros, now Massimo Zanetti. Once Hill Bros moved to Suffolk from New Jersey, others began to see its merits as an East Coast base. Building on the foundation of early investment by Lipton, which built its first plant there in 1955, the region is now the third-largest coffee and tea cluster in the country.

The City of Suffolk, together with the Virginia Economic Development Program, welcomed the industry with large industrial sites close to Port of Virginia and collaborated to have three coffee warehouse companies licensed by the International Coffee Exchange (ICE). Only beans stored under very particular, climate-controlled conditions can be certified for trading on ICE’s commodities exchange.

Bean roasting connoisseur allowing customer to smell the aroma from the coffee beans

To ensure the people of Suffolk could move into value-added jobs in the coffee industry, local educational institutions, such as Paul D. Cook Community College in Suffolk, developed training programs tailored to the industry’s needs offering new credentials such as an Industrial Technology and Electronic Controls certification.

The companies offer interesting career paths. “Cuppers” are specialized technicians who test beans for quality and taste the beans after roasting, grading their suitability and characteristics for blending. Nora Johnson came to Suffolk to work as an intern with Massimo Zanetti in 2016 as a Florida Gulf Coast University student. Upon graduating, she joined Massimo Zanetti full-time as a Commodities Analyst, analyzing customer positions on the coffee futures market and has become involved in the company’s sustainability and responsible sourcing initiatives.

Toast the roast

The coffee industry contributes approximately 10 percent of Suffolk’s gross regional product directly, and another 13 percent through indirect and induced effects. The Port of Virginia started a new annual celebration, “Coffee Day,” so everyone can toast the roast and celebrate the opportunities trade brings to the region.

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Evelyn Suarez

Evelyn Suarez is a legal expert and consultant specializing in customs compliance and anti-corruption. Ms. Suarez serves on the Virginia Maritime Association Board, and advisory boards to the George Washington University Center for International Business Education & Research and Georgetown University Law Center International Trade Update.

This article originally appeared on TradeVistas.org. Republished with permission.
Spinnaker Investment Group
Archives, Global Trade Daily, News

Andrew Krongold Named Partner at Spinnaker Investment Group

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Vice President of Investments Andrew Krongold has been named partner in Spinnaker Investment Group, announced company CEO and Chief Investment Officer Morgan Christen. Krongold joins Christen and company president Joseph Stapleton as partners in the seven-member firm, which has more than $330 Million in assets under management.

Krongold has served as Vice President since the firm’s launch in 2016, providing CFO-level services for businesses and individuals such as customized investment management, life insurance, pension plans, and executive compensation solutions. At Spinnaker he provides leadership on the firm’s investment committee and guides marketing and technological innovation efforts.  He holds numerous licenses and professional designations, including Chartered Retirement Planning Counselor.

“We are proud to welcome Andrew as an equity partner of Spinnaker Investment Group,” Christen said.  “He is one of the big reasons we have been named among Orange County’s fastest-growing companies for two years in a row.  Andrew not only continues to provide his clients with world-class financial services but also is a valued community leader making a difference in Southern California.”

Krongold developed a passion for investments and teaching others about investing at an early age. He made his first stock purchase at 13 and chose wealth management as a career path soon after graduating from high school.  “As a kid I was fascinated with the idea that you could buy a piece of a large company,” he said.

Trading stocks and managing 401k plans early on provided great perspective on the highs and lows investors experience, he added.  “Having personally experienced the emotions associated with both making and losing money, I knew I wanted to join a firm that was independent and focused on the needs of clients, rather than be obliged to sell the financial products offered by a large institutional firm,” said Krongold.

Andrew is active in the community of Orange County where he is a mentor with Big Brothers Big Sisters of Orange County, a Board member for the NextGen division of the Jewish Federation & Family Services of Orange County, and a board member of the Tocqueville Society of Orange County United Way. In 2019, Krongold was named one of “40 under 40” by the Irvine Chamber of Commerce, in recognition of his accomplishments and service.

A graduate from the University of California San Diego with a Bachelor of Arts degree in Economics, Krongold and his wife are residents of Costa Mesa, Calif.

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About Spinnaker Investment Group, LLC:

Spinnaker Investment Group, LLC is a privately owned, boutique Investment Company that cares deeply about its clients and is committed to helping them realize their financial independence.   The company’s mission is to deliver the highest level of comprehensive wealth management service, helping customers achieve their financial goals and ultimately establish a safe, secure future.   With more than 30 years of combined investment experience, the Spinnaker team supports this mission by providing expert financial planning, wealth planning, retirement planning, asset management, securities and insurance.  For more information, visit www.SpinnInvest.com.

site selection
Archives, Global Trade Daily, Site Selection, State Spotlight, Top Cities

Our Annual Governor’s Cup Ranks Top 10 Southern States for Site Selection Incentives

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A funny thing happened on the way to compiling Global Trade’s latest Annual Governor’s Cup feature on state site selection incentives: the preponderance of states from the South that offer more attractive benefits than just about anywhere else in the country.

Rather than cast the net wide enough to include non-southern states for the sake of comprehensiveness, we decided to this year focus more strongly on the country’s hottest region. There are 16 states in the American South, and based on data and statistics from the U.S. government and various business, industry and media entities, we have ranked the top 10.

It must be mentioned that differing sources had Tennessee and Georgia as the top state among all 50 when it comes to site selection incentives. We did not flip a coin but instead gave The Volunteer State the ever-so-slight edge based on the quality of incentives offered. Really, you would do well to start up or relocate in either state or, heck, any of the 10 that follow.

1. TENNESSEE

Capital: Nashville

Population: 6.77 million

GDP: $287.77 billion (2-16)

Largest cities: Nashville, Memphis, Knoxville, Chattanooga

Targeted industries: Business Services, Chemicals, Plastics & Rubber, Food & Agribusiness, Distribution & Logistics, Aerospace & Defense, Transportation, Healthcare & Medical Devices, Energy Technology, Automotive, Advanced Manufacturing

Site location success story: Amazon opening a major operations and logistics office hub in Nashville that creates 5,000 high paying jobs and pumps $230 million into the local economy.

Key agency: Tennessee Department of Economic & Community Development

Key site-selection incentives:

*Fast Track Economic Development Fund, which provides grants to local communities to reimburse companies for eligible expenditures not covered by infrastructure or job training grants, including relocation of equipment, temporary office space, capital improvements and retrofitting.

*Job Tax Credit of $4,500 per job to offset up to 50 percent of franchise and excise taxes (F&E) in any given year with a carry forward for up to 15 years so long as businesses create at least 25 net new full-time positions within a 36 month period and invest at least $500,000 in a qualified business enterprise.

*Enhanced Job Tax Credit, which allows an additional annual credit for locations/expansions in designated Tier 2, Tier 3 and Tier 4 Enhancement Counties and can offset up to 100 percent of F&E liability.

*Industrial Machinery Tax Credit of 1-10 percent for the purchase, third party installation and repair of qualified industrial machinery used in manufacturing, warehousing and distribution and at headquarters and call centers.

*Sales and Use Tax Exemptions at headquarters or for industrial machinery and reduced sales tax rates for utilities at qualified call centers, data centers and warehousing, distribution and manufacturing facilities.

*Research and Development sales tax exemption.

*FastTrack Job Training Assistance Program for new or expanding companies that provide funding to support the training of net new full-time employees.

*Export Assistance that includes networking, training and free planning services and trade and travel assistance.

2. GEORGIA

Capital: Atlanta

Population: 10.52 million (2018)

GDP: $461.1 billion (2016)

Largest cities: Atlanta, Columbus, Augusta, Macon

Targeted industries: Call Centers, Cybersecurity, Financial Technology, Food Processing, Logistics, Automotive, Life Sciences, Aerospace, Information Technology, Manufacturing, Headquarters

Site location success story: Brazil’s Guidoni Group, which is one of the leading producers and exporters of ornamental stones in the world, locating a manufacturing facility in McRae-Helena that creates 455 jobs and invests $96 million. The project is slated to open in 2020’s third quarter.

Key agency: Georgia Department of Economic Development

Key site selection incentives:

*No real or personal property tax, no state property tax on inventory and 5.75 percent corporate income tax.

*Inventory Tax Exemption, where counties and municipalities have the option of enacting a local property tax exemption for four classes of inventory at 20, 40, 60, 80 or 100 percent of the value.

*Investment Tax Credit for companies to upgrade or expand as long as they have operated a manufacturing or telecommunications facility (including corporate office and other support facilities) for at least three years in the state.

*Mega Project Tax Credit, which is available for companies that employ at least 1,800 net new employees, and either invest a minimum of $450 million or have a minimum annual payroll of $150 million.

*Port Tax Credit Bonus rewards new or expanding companies that increase imports or exports through a Georgia deepwater port by at least 10 percent over the previous or base year. It can be used with the Job Tax Credit program or the Investment Tax Credit program.

*Quality Jobs Tax Credit for jobs that pay higher-than-average wages.

*Research & Development Tax Credit for Georgia companies performing qualified research and development in manufacturing, telecommunications, broadcasting,

warehousing & distribution. R&D, processing and tourism.

3. SOUTH CAROLINA

Capital: Columbia

Population: 5 million (2017)

GDP: $183.8 billion (2016)

Largest cities: Charleston, Columbia, North Charleston, Mount Pleasant

Targeted industries: Advanced Materials, Distribution & Logistics, Aerospace, Automotive, Office/Shared Services, Life Sciences, Advanced Manufacturing

Site location success story: AIRSYS Cooling Technologies Inc., global information, communication and technology cooling solution provider, establishing operations in Spartanburg County, where more than $5 million is to be invested and 116 new jobs created.

Key agency: South Carolina Department of Commerce

Key site-selection incentives:

*Economic Development Set-Aside Program that assists companies in locating or expanding in South Carolina by providing financial assistance for road or site improvements and other costs related to business location or expansion.

*Single Factor Sales Apportionment for a company whose primary business in the state is manufacturing, distribution or selling or dealing intangible personal property. The apportionment formula is advantageous for a company whose majority of sales occur outside of South Carolina.

*Corporate Headquarters Credit of 20 percent based on the cost of the actual portion of the facility dedicated to the headquarters operation or direct lease costs for the first five years of operation.

*Credit for Revitalization of Abandoned Buildings, of which at least 66 percent has been closed continuously or otherwise nonoperational for at least five years.

*Fee-in-lieu of Property Taxes may be offered by a county to companies with a total investment of $2.5 million or greater on new buildings and equipment.

*Investment Tax Credit that allows manufacturers a one-time corporate income tax credit for a company’s investment in new production equipment.

*Job Development Credit that can refund a portion of state withholding tax liability for 10-15 years.

*Port Volume Increase Credit for manufacturers, distributors or entities engaged in freight forwarding, freight handling, goods processing, cross-docking, transloading or wholesaling of goods that use state port facilities and increase base port cargo volume by at least 5 percent over base-year totals.

*Research & Development Tax Credit equal to 5 percent of the taxpayer’s qualified research expenses in the state.

4. NORTH CAROLINA

Capital: Raleigh

Population: 10.2 million (2017)

GDP: $538.3 billion (2017)

Largest cities: Charlotte, Raleigh, Greensboro, Durham

Targeted industries: Biotech & Pharmaceuticals, Automotive, Aerospace & Defense, Agribusiness & Food Processing, Business & Financial Services, Information & Communication Technology, Truck & Heavy Equipment

Site location success story: Merck, a leading global biopharmaceutical company, investing $57 million to establish a filling and packaging line for the company’s RotaTeq vaccine and create 55 jobs in Wilson.

Key agency: Economic Development Partnership of North Carolina

Key site-selection incentives:

*Job Development Investment Grant that provides cash grants to new and expanding businesses to help offset the cost of locating or expanding in North Carolina.

*One North Carolina Fund that allows the governor to respond quickly to competitive job-creation projects that do also require a local match.

*Building Reuse Programs for renovation and upfitting vacant industrial and commercial buildings.

*Singles Sales Factor Apportionment that determines how much of a corporation’s income is subject to state tax based solely on its revenue from sales located in or sourced to North Carolina.

*Sales and Use Tax Exemptions for specified manufacturing, fulfillment, data centers and more.

5. ALABAMA

Capital: Montgomery

Population: 4.87 million (2017)

GDP: $211 billion (2017)

Largest cities: Birmingham, Montgomery, Huntsville, Mobile

Targeted industries: Aerospace/Defense Manufacturing, Automotive Manufacturing, Chemical Manufacturing, Agricultural Products/Food Production Manufacturing, Steel/Metal Manufacturing, Distribution & Logistics, Information Technology

Site location success story: Airbus’ first single-aisle A220 passenger jet rolling out this year at its second Mobile campus, which opened last year.

Key agency: Economic Development Partnership of Alabama

Key site-selection incentives:

*Alabama Department of Commerce’s Certified Capital Company (CAPCO) Program offers an alternative to conventional bank financing to accommodate a slightly higher risk profile and provide a more flexible structure for growing businesses in the state.

*Industrial Revenue Bonds, which are tax-exempt and issued at rates lower than conventional sources, may be used as long-term financing of up to 100 percent of a project for acquisition of land, buildings, site preparation and improvements; building, furnishing and filling structures; and “soft costs” such as architectural and engineering, interest incurred during construction, cost associated with bond issuance, etc.

*Investment Credit for a qualifying project for up to 10 years and can be taken against the Alabama income tax liability and/or utility tax liability.

*Jobs Credit annual cash rebate up to 3 percent of the previous year’s gross payroll (not including fringe benefits) for eligible employees for up to 10 years. The rebate rises if at least 12 percent of employees are veterans.

6. TEXAS

Capital: Austin

Population: 28.3 million (2017)

GDP: $1.7 trillion (2017)

Largest cities: Houston, San Antonio, Dallas, Austin

Targeted industries: Advanced Technologies & Manufacturing, Energy, Information & Computer Technology, Petroleum Refining & Chemical Products, Biotech & Life Sciences, Aerospace & Defense

Site location success story: United Alloy Inc., a serial production metal fabrication and powder coating company, building its new state-of-the-art, 200,000-square-foot manufacturing facility on a 27-acre site in Seguin, which benefits from at least 100 new jobs and $35 million in total capital investment over a three-year period.

Key agency: The Governor’s Office of Economic Development & Tourism | Gov.texas.gov/business | (512) 936-0100

Key site-selection incentives:

*Capital Access Program financing for small and medium-sized businesses and non-profits which face barriers to accessing capital or fall outside of guidelines of conventional lending.

*Industrial Revenue Bonds that provide tax-exempt financing for land and depreciable property for eligible industrial or manufacturing projects.

*Spaceport Trust Fund financial support for the development of infrastructure necessary or useful for establishing a spaceport in Texas.

*Texas Enterprise Fund awards “deal-closing” cash grants to companies considering a new project for which one Texas site is competing with other out-of-state sites.

*Texas Product Development & Small Business Incubator Fund long-term, asset-backed loans to product development companies and small business incubators/accelerators located in Texas.

*Business Relocation Tax Deduction & Exemption for qualified businesses relocating to Texas.

*Renewable Energy Incentives for any qualifying Texas business that exclusively manufactures, sells or installs wind or solar energy devices.

*State Sales & Use Tax Exemptions for rented, leased or purchased machinery, equipment, replacement parts and accessories that have a useful life of more than one year or 12 months, and that are used or consumed in the manufacturing, processing, fabricating or repairing of tangible personal property for ultimate sale.

*Texas Economic Development Act incentives for large-scale manufacturing, research and development and other large capital investment projects that locate in Texas.

*Texas Enterprise Zone Program state sales and use tax refunds for private investment and job creation in economically distressed areas of the state.

*Texas Research & Development Tax Credit sales tax exemption when buying materials, software and equipment directly used in qualified R&D purposes.

 7. KENTUCKY

Capital: Frankfort

Population: 4.45 million (2017)

GDP: $202.5 billion (2017)

Largest cities: Louisville, Lexington-Fayette, Bowling Green, Owensboro

Targeted industries: Automotive Related Engineering & Manufacturing; Aerospace; Advanced Manufacturing; Logistics & Distribution; Food & Beverage; Aluminum & Steel Related Manufacturing; Chemicals, Plastic & Rubber

Site location success story: The first Kentucky operation for Precision Pulley & Idler, a supplier of idlers, pulleys, bearings and other products for the major bulk and material handling components industries. The $10.75 million production facility in Maysville creates more than 100 full-time jobs over the next decade.

Key agency: Kentucky Association for Economic Development

Key site-selection incentives:

*Direct Loan Program loans at below-market interest rates for fixed asset financing for agribusiness, tourism, industrial ventures or the service industry. Retail projects are not eligible.

*Industrial Revenue Bonds to finance manufacturing projects and their warehousing areas, major transportation and communication facilities, most health care facilities, and mineral extraction and processing projects.

*Kentucky Enterprise Fund and Rural Innovation Fund seed-stage capital for companies that are commercializing a technology-based product or process.

*Kentucky New Energy Ventures Fund seed stage capital to support the development and commercialization of alternative fuel and renewable energy products, processes and services.

*Kentucky Small Business Credit Initiative and Small Business Loan Program loans for small businesses engaged in manufacturing, agribusiness or service and technology.

*Angel Investment Tax Credit of up to 50 percent of an investment in Kentucky small businesses; the investor and business much each apply.

*Kentucky Business Investment Program income tax credits and wage assessments to new and existing agribusinesses, regional and national headquarters, manufacturing companies, alternative fuel, gasification, energy-efficient alternative fuels, renewable energy production companies, carbon dioxide transmission pipelines and non-retail service or technology related companies that locate or expand operations in Kentucky.

*Kentucky Enterprise Initiative Act tax breaks for new or expanded companies engaged in manufacturing, non-retail service or technology activities, agribusiness, headquarters operations, alternative fuel, gasification, energy-efficient alternative fuels, renewable energy production companies, carbon dioxide transmission pipelines, or tourism attraction project in Kentucky.

*Kentucky Industrial Revitalization Act tax credits for the rehabilitation of manufacturing or coal mining and processing operations that are in imminent danger of permanently closing or that have closed temporarily.

8. VIRGINIA

Capital: Richmond

Population: 8.47 million (2017)

GDP: $508.7 billion (2017)

Largest cities: Virginia Beach, Norfolk, Chesapeake, Richmond

Targeted industries: Cyber Security, ­ Software Publishing, Data Centers, Information/Communications Technologies, Corporate Services, ­ Headquarters, Supply Chain Management, Food & Beverage Processing, Advanced Materials, Aerospace, Automotive, Wood Products, Life Sciences, Unmanned Systems

Site location success story: Cascades, a Canadian packaging and tissue products producer, paid $40 million and plans to invest up to $300 million more to replace the Bear Island paper mill that shut down in Hanover County in 2017. The facility that’s planned to reopen in 2021 will employ 140 workers.

Key agency: Virginia Economic Development Partnership

Key site-selection incentives:

*Virginia Economic Development Incentive Grant for those locating significant headquarters, administrative or service sector operations in the state.

*Virginia Investment Performance Grant for companies involved in added capacity, modernization, increased productivity or the creation, development and utilization of advanced technology.

*Port of Virginia Economic and Infrastructure Development Grant Program for companies that locate new maritime-related employment centers or expand existing centers in the Commonwealth that foster the port’s growth.

*Virginia Small Business Financing Authority programs for small businesses that need access to capital for growth and expansion.

*Rail Industrial Access Program connecting businesses to freight rail service by funding the construction or improvement of railroad tracks and facilities to serve industrial or commercial sites where freight rail service is currently needed or anticipated in the future.

*Corporate Income Tax Credits for multiple industry and business sectors.

*Property Tax Exemptions for multiple types of industry and business property, equipment and tools.

*Sales & Use Tax Exemptions on gross receipts derived from retail sales or leases of tangible personal property, unless the retail sales or leases are specifically exempt by law.

9. MISSISSIPPI

Capital: Jackson

Population: 2.98 million (2017)

GDP: $111.7 billion (2017)

Largest cities: Jackson, Gulfport, Southaven, Hattiesburg

Targeted industries: Aerospace, Advanced Manufacturing, Shipbuilding, Agribusiness, Automotive, Forestry & Energy, Healthcare

Site location success story: Amazon leasing a 1 million-square-foot facility in DeSoto County’s Olive Branch for a fulfillment center that brings 500 new full-time jobs. Just 11 months ago, Amazon disclosed plans for its Marshall County fulfillment center that’s employing 850 workers.

Key agency: Mississippi Economic Development Council

Key site-selection incentives:

*Development Infrastructure Grant Program to finance infrastructure projects for manufacturers, warehouses and distribution centers, research and development facilities, telecommunications and data processing facilities and national or regional headquarters.

*Energy Efficiency Revolving Loan Program for businesses and other eligible entities that are increasing energy efficiency in their buildings, equipment and processes.

*Standard Property Tax Exemptions that local governing authorities may grant businesses locating or expanding in their areas for up to 10 years.

*Industrial Revenue Bond Program to finance companies’ location or expansion projects in the state.

*Advantage Jobs Incentive Program for businesses that create new, high-quality jobs through locating or expanding in the state.

*Growth and Prosperity Program state income tax, franchise tax and property tax exemptions for up to 10 years, as well as a sales and use tax exemption on equipment and machinery purchased during initial construction or an expansion at an approved facility.

*Jobs Tax Credit equal to a percentage of payroll for each newly created job for a five-year period for eligible businesses.

*Mississippi Aerospace Initiative Incentives Program is a 10-year income and franchise tax exemption and a sales and use tax exemption for the start-up of a new facility or expansion of an existing facility that manufactures or assemble products for use in—or that provides research and development or training services to—the aerospace industry.

*Mississippi Clean Energy Initiative Program is a 10-year income and franchise tax exemption and a sales and use tax exemption for the start-up of a new—or expansion of an existing—clean energy business.

*Mississippi Data Center Incentives for a business enterprise certified by the state as a data center.

*National or Regional Headquarters Sales Tax Exemption for an eligible business that creates or expands its national or regional headquarters in the state.

*Property Tax Exemption for Industrial Revenue Bond Financing.

*Property Tax Exemption on In-State Inventory (finished goods that will remain in the state).

*Research and Development Skills Tax Credit for a five-year period for each position requiring R&D skills.

10. LOUISIANA

Capital: Baton Rouge

Population: 4.68 million (2017)

GDP: $246.3 billion (2017)

Largest cities: New Orleans, Baton Rouge, Shreveport, Metairie

Targeted industries: Software Development, Energy, Automotive, Advanced Manufacturing, Aerospace, Process Industries, Agribusiness, Water Management, Entertainment

Site location success story: Testronic, a leading quality assurance firm in the digital gaming industry, launching a new 150-job testing facility in New Orleans that will result in another 169 new indirect jobs, for a total of 319 new jobs in New Orleans and the Southeast Region.

Key agency: Louisiana Economic Development

Key site-selection incentives:

*Competitive Projects Property Tax Exemption for non-manufacturing industry sectors, including corporate headquarters, distribution facilities, data services facilities, research and development operations, and digital media and software development centers.

*Economic Development Award Program financial assistance to influence a company’s decision to locate, relocate, maintain, rebuild and/or expand its business operations in Louisiana.

*Industrial Tax Exemption Program, which offers an attractive tax incentive for manufacturers who make a commitment to jobs and payroll in the state.

Sources: Bureau of Economic Analysis, U.S. Department of Commerce, BusinessFacilities.com, Site Selection Group, Area Development.