North Carolina is experiencing rapid growth and is currently the third-fastest growing state east of the Mississippi River, according to the US Census Bureau. North Carolina's population, at just over 6 million people in 1990, is now almost 8.5 million¹. The fastest growing counties are currently in the Charlotte, Raleigh-Durham, and Wilmington areas (see graphic below). This rate of population expansion is expected to continue in the future resulting in an additional 4 million new residents by 2030 (see graphic below).

Population alone is creating significant new transportation capacity demands for North Carolina, but other demographic trends are also adding to the State's transportation challenges:

• Household income in the State has risen dramatically, further fueling recreational and tourism travel, and adding to overall vehicle trips per household.
• Suburbanization is increasing - the typical North Carolina commuter in 2004 spends an additional 35 hours per year in traffic versus 10 years ago.²
• VMT, a common industry measure of travel demand, has increased by almost 40% from 1990 to 2000.

Project Population Growth by County (2000-2010)

Existing and Projected Population Growth (1970-2030)

North Carolina is characterized by diverse regional economies, supported by both traditional and emerging industries. The Charlotte area is a prominent banking and financial center; the Southeast region is tied to the US military presence; the Mountains, Northeast region and the Outer Banks drive a burgeoning tourism economy; the Triad is home to numerous manufacturing and logistics industries; and the Research Triangle region is touted for its technology-related businesses and prominent university presence. North Carolina is also well known for its many agri-business industries, and the State is a national leader in turkey and pork production. Accurately predicting the future of North Carolina's economy is difficult; however the growth of a number of service-oriented and knowledge-based companies is expected to change the nature of workforce training, job skills, and industry recruitment and placement. Other trends such as manufacturing decentralization, just-in-time delivery³, and the increased use of technology will require transportation services to be modern, reliable, and operationally efficient. The SHC initiative supports these trends by focusing resources on better planning of major statewide and regionally significant facilities. These facilities will serve as a transportation backbone for the state, tying regions and subregions together, expeditiously moving raw goods to market, and keeping North Carolina at a competitive advantage both domestically and internationally.

Transportation is increasingly becoming the core component of a broader, global economic supply chain. Recent national and global economic policies, such as the North American Free Trade Agreement (NAFTA) and other trade liberalization practices, along with alliances in new international markets will add significant pressure to North Carolina's transportation system. The state's gateways, air and sea ports, connecting infrastructure, and major rail and highway facilities will bear the bulk of this increased freight movement. Between 1998 and 2020 domestic tonnage carried along national freight systems is expected to increase by 67% (see graphics below), while international trade will nearly double by 2020. This dramatic increase in commodity flow, coupled with delivery time and service reliability considerations will require State DOTs to build and maintain an integrated transportation system with seamless operations between manufacturing centers, distribution hubs, and major freight destinations.

1998 Domestic Truck Volumes

2020 Forecasted Domestic Truck Volumes

Since the late 1990's, NCDOT along with 15 other State DOTs in the southeastern US, have sought to better understand the impact of international trade with Latin America. The Latin American Trade and Transportation Study (LATTS) financed by each State DOT and the Federal Highway Administration (FHWA) provides decision-makers with data and an outlook of infrastructure needs based on a projected three-fold increase in trade with Latin American countries by 2020. The study also raises investment policy and economic considerations faced by each southeastern state. The State DOTs, formally recognized as the Southeastern Transportation Alliance, have utilized the services of a consultant firm to produce a series of state profile reports, trade flow summaries, and financial strategies associated with reorienting infrastructure investment to take advantage of this trading opportunity. Needs and costs associated with highways, rail lines, airports, and sea/river ports, along with other relevant freight trends have been prepared for each State. Future plans include the creation of a permanent Institute for Trade & Transportation Studies (ITTS). ITTS, expected to be located in Louisiana, will act as a resource and research arm to contributing member states and will be operational by fall 2005.

LATTS Highway Network

Given this context, the SHC initiative again proves to be a timely platform on which specific infrastructure improvements required to accommodate increased freight movement can occur. Each LATTS Highway Corridor (see graphic on right) in North Carolina is already identified as a Strategic Highway Corridor, and the ultimate facility type vision for these specific corridors addresses the theme of greater freight mobility and safety. Along with advancing the SHC initiative, NCDOT must consider the following actions as part of an overall freight transportation policy:

• Building efficient, mobility-oriented transportation corridors that service truck and rail freight needs and effectively move traditional manufacturing and emerging goods to market.
• Modernizing short highway connections (typically National Highway System Connectors) in urban and rural areas that represent critical "last mile" segments of the transportation system.
• Partnering with the private industry (and other state agencies such as the Department of Commerce) to finance transportation solutions for unique regional infrastructure problems.
• Providing transportation services that fit emerging supply chain and business needs; consider creative solutions such as truck-only lanes for specific highway segments.
• Working with other vested industries and organizations to improve the efficiency and transfer of goods between transportation modes at intermodal terminals, ports, and distribution hubs.

¹North Carolina State Data Center.

²The Road Information Program, Paying the Price for Inadequate Roads in North Carolina: The Cost to Motorists in Reduced Safety, Lost Time, and Increased Vehicle Wear, April 2004.

³A method of production and inventory cost control based on delivery of parts and supplies at the precise time they are needed in a production process.