Executive Summary
Strata-G, LLC (Strata-G) was hired by the Chickasaw Development Foundation (CDF) to create a Transportation Plan that addresses routes from three proposed industrial site locations for automotive manufacturing suppliers considering plant locations in Northern Mississippi, and specifically in Chickasaw County. The CDF recognizes that automotive suppliers consider several factors including highway accessibility and uninterrupted 4-lane connectivity in order to provide reduced costs and Just In Time delivery for the eventual recipient, Toyota Motor Manufacturing Mississippi, Inc. (TMMMS). This study is designed to help prioritize three selected sites based on current and future transportation factors in the county as well as to identify primary roads and connectors needed to provide a seamless transportation system to TMMMS.
This study is based upon a transportation analysis model developed by Strata-G, which considers the location of TMMMS and three potential industrial parks in Chickasaw County, located in Houston, New Houlka and Okolona. It also relies upon Strata-G’s experience with logistics network design and the knowledge gained from site selection research.
The study concludes that:
- Suppliers locating in any of the three proposed industrial sites of Chickasaw County will be within a 60 mile radius of TMMMS. This is a major cost, profit, and service factor for Tier I, II, and III suppliers.
- Just In Time daily and hourly delivery to TMMMS is a reality for suppliers locating at any of the proposed industrial sites in Chickasaw County. The average distance of Tier I suppliers to existing Toyota Motor plants in the U.S. is 157 miles, with the most critical parts suppliers positioned within 70-90 miles of the manufacturing facility(1).
- In comparing three potential industrial site locations for CDF, and analyzing route segments, mileage, highway categories, freight capacity, and median traffic between TMMMS and the supplier base it would serve, we found that the route from the location in New Houlka would be optimal.
- Based on the automobile industry’s efficiency expectations, suppliers would be well-advised to make Chickasaw County a priority in a list of prospective locations.
Potential Supplier Site Locations
In evaluating transportation scenarios for Chickasaw County, Strata-G focused on the following three industrial park locations, specified by the Chickasaw Development Foundation, in Houston, New Houlka, and Okolona, represented in Figures 1-4:
Fig. 1 – Location of Industrial Parks used for Analysis
Houston Industrial Park
Located at Industrial Drive, Houston MS 38851.
Fig. 2 – Specific Location of Houston Industrial Park used in Analysis
New Houlka Industrial Park
Located at 101 Industrial Drive and Highway 32 West, New Houlka, MS 38850.
Fig. 3 – Specific Location of New Houlka Industrial Park used in Analysis
Okolona South Industrial Park
Located at 1544 South 45 Alternate, Okolona, MS 38860.
Fig. 4 – Specific Location of Okolona Industrial Park used in Analysis
Route Analysis
Strata-G reviewed potential access routes from the proposed Industrial Park locations in Chickasaw County to TMMMS in order to determine the lowest cost route based on miles per road segment, road characteristics (including local, state, federal, number of lanes, and speed limits), highway capacities, and median traffic flow. Each route was ranked using weighted averages from these factors. The round trip cost is based on the average per mile cost of one for-hire freight vehicle.
Houston to Toyota Motor Manufacturing Mississippi, Inc.
I. The preferred route from Houston, based on our analysis, is:
MS Hwy 15N – MS Hwy 32E – US Hwy 45 Alt N – US Hwy 45 N – US Hwy 78W
Total Distance: 58 Miles
Drive Time: 71 Minutes
Round Trip Cost: $218
This route is preferred due to 4-lane route connectivity and number of miles spent on the 4-lane route.
| Route Segment | Highway Category | Number of Lanes | Mileage per Segment | Legal Truck Weight | Median Daily Traffic |
|---|---|---|---|---|---|
| Industrial Dr. | Local | 2 | 1.1 | ||
| MS 15N | State | 2 | 4.4 | 80,000 | 9,200 |
| MS 32E | State | 2 | 17.7 | 80,000 | 3,550 |
| US 45 Alt N | US | 4 | 10.0 | 80,000 | 10,000 |
| US 45N | US | 4 | 10.6 | 80,000 | 24,000 |
| US 78W | US | 4 | 13.2 | 80,000 | 21,500 |
| Connector | Local | 2 | 0.4 |
II. Alternate suggested route from Houston:
MS Hwy 15N – MS Hwy 76E – MS Hwy 9 – US Hwy 78W
Total Distance: 45 Miles
Drive Time: 64 Minutes
Round Trip Cost: $169
This route is 13 miles shorter in distance than the preferred route, and the drive time is 7 minutes shorter. The round trip cost is lower, based solely on the mileage. This route is a very favorable route as well, ranking lower than the first suggestion only due to time spent on 2-lane highways with the potential for more congestion and delays. When MS 15 becomes a 4-lane highway, this will be the preferred route.
| Route Segment | Highway Category | Number of Lanes | Mileage per Segment | Legal Truck Weight | Median Daily Traffic |
|---|---|---|---|---|---|
| Industrial Dr. | Local | 2 | 1.1 | ||
| MS 15N | State | 2 | 26.6 | 80,000 | 5,100 |
| MS 76E | State | 4 | 3.5 | 80,000 | 1,200 |
| MS 9N | State | 2 | 10.3 | 80,000 | 5,350 |
| US 78W | US | 4 | 3.4 | 80,000 | 20,000 |
| Connector | Local | 2 | 0.4 |
III. Alternate route from Houston:
MS Hwy 15N to US Hwy 78E
Total Distance: 51 Miles
Drive Time: 72 Minutes
Round Trip Cost: $195
This route is 7 miles shorter in distance than the preferred route; however, the congestion on 2-lane State Hwy 15 affects the drive time on this route. Looking solely at mileage and an average per-mile cost, the round trip cost is lower; however, this route is not recommended. When MS 15 becomes a 4-lane highway, this route will be a suggested alternative route.
| Route Segment | Highway Category | Number of Lanes | Mileage per Segment | Legal Truck Weight | Median Daily Traffic |
|---|---|---|---|---|---|
| Industrial Dr. | Local | 2 | 1.1 | ||
| MS 15N | State | 2 | 9.9 | 80,000 | 8,400 |
| MS 15N | State | 2 | 13.2 | 80,000 | 3,550 |
| MS 15N | State | 2 | 17.8 | 80,000 | 4,650 |
| US 78E | US | 4 | 8.9 | 80,000 | 18,000 |
| Connector | Local | 2 | 0.4 |
New Houlka to Toyota Motor Manufacturing Mississippi, Inc.
I. The preferred route from New Houlka, based on our analysis, is:
MS Hwy 15N – MS Hwy 76E – MS Hwy 9 – US Hwy 78W
Total Distance: 37 Miles
Drive Time: 59 Minutes
Round Trip Cost: $140
This route is preferred due to the significant difference in mileage than the other routes. It does have more 2-lane roads, however it is 25 miles shorter than the route with more 4-lane options.
| Route Segment | Highway Category | Number of Lanes | Mileage per Segment | Legal Truck Weight | Median Daily Traffic |
|---|---|---|---|---|---|
| Connect to 15N | Local | 2 | 2.2 | ||
| MS 15N | State | 2 | 17.1 | 80,000 | 5,100 |
| MS 76E | State | 4 | 3.5 | 80,000 | 1,200 |
| MS 9N | State | 2 | 10.3 | 80,000 | 5,350 |
| US 78W | US | 4 | 3.4 | 80,000 | 20,000 |
| Connector | Local | 2 | 0.4 |
II. Alternate suggested route from New Houlka:
MS Hwy 15S – MS Hwy 32E – US Hwy 45N – US Hwy 78W
Total Distance: 62 Miles
Drive Time: 75 Minutes
Round Trip Cost: $235
This route is suggested due to 4-lane route connectivity and road capacity.
| Route Segment | Highway Category | Number of Lanes | Mileage per Segment | Legal Truck Weight | Median Daily Traffic |
|---|---|---|---|---|---|
| Connect to 15S | Local | 2 | 2.2 | ||
| MS 15S | State | 2 | 6.2 | 80,000 | 5,100 |
| MS 32E | State | 2 | 14.1 | 80,000 | 3,550 |
| US 45 Alt N | US | 4 | 13.2 | 80,000 | 10,000 |
| US 45N | US | 4 | 13.1 | 80,000 | 24,000 |
| US 78W | US | 4 | 13.1 | 80,000 | 21,500 |
| Connector | Local | 2 | 0.4 |
III. Alternate suggested route from New Houlka:
MS Hwy 15N – US Hwy 78E
Total Distance: 43 Miles
Drive Time: 56 Minutes
Round Trip Cost: $164
This route is not recommended because the 2-lane State Hwy 15 can be congested, especially north of Hwy 76. When MS 15 becomes a 4-lane highway, this route will be a suggested alternative route.
| Route Segment | Highway Category | Number of Lanes | Mileage per Segment | Legal Truck Weight | Median Daily Traffic |
|---|---|---|---|---|---|
| Connect to 15N | Local | 2 | 2.2 | ||
| MS 15N | State | 2 | 13.2 | 80,000 | 3,550 |
| MS 15N | State | 2 | 17.8 | 80,000 | 4,650 |
| US 78E | US | 4 | 8.9 | 80,000 | 18,000 |
| Connector | Local | 2 | 0.4 |
Okolona to Toyota Motor Manufacturing Mississippi, Inc.
I. The preferred route from Okolona, based on our analysis, is:
US Hwy 45 Alt N to US Hwy 78W
Total Distance: 41 Miles
Drive Time:45 Minutes
Round Trip Cost: $156
This route is preferred due to its 4-lane highway connectivity. A recent study of existing Toyota manufacturing plants indicated that over 70 percent of Tier suppliers are within 10 miles of a 4-lane highway (1).
| Route Segment | Highway Category | Number of Lanes | Mileage per Segment | Legal Truck Weight | Median Daily Traffic |
|---|---|---|---|---|---|
| Connector | Local | 2 | 0.3 | ||
| US 45 Alt N | US | 4 | 16.7 | 80,000 | 10,000 |
| US 45N | US | 4 | 10.5 | 80,000 | 24,000 |
| US 78W | US | 4 | 13.1 | 80,000 | 21,500 |
| Connector | Local | 2 | 0.4 |
Other Transportation Highlights – Chickasaw County
Rail
Kansas City Southern Railway (KCS), a Class I railway with 605 route miles in Mississippi, operates in Chickasaw County, with an interchange with Burlington Northern & Santa Fe (BNSF) at New Albany, Mississippi. KCS has an interchange with Norfolk Southern to the North in Middleton, Tennessee and to the South at Meridian, Mississippi. The interchange with BNSF allows for haulage to the TMMMS Site.
Mississippi Tennessee Railway, a Class III railway, abandoned lines in Houston in 2007. The line ran 87 miles, north through Houlka, and interchanged with BNSF and with Norfolk Southern. This rail line is a prospect for conversion in the Rails to Trails program, and not projected to resume active service, although it would be beneficial to Houston and New Houlka area suppliers.
Creation of a new rail district to provide competitive rail access for TMMMS has been discussed and would be beneficial to suppliers in Chickasaw County.
Barge
The closest ports to Chickasaw County on the Tennessee-Tombigbee Waterway (Tenn-Tom) are Aberdeen and Amory to the East. The 234-mile waterway provides access to deepwater ports on the Gulf of Mexico including Biloxi, New Orleans, Mobile, Pascagoula, Panama City, and Gulfport. In addition the Tenn-Tom connects to 4500 miles of water routes in the Southeast and Midwest.
The port of Aberdeen is 31 miles southeast of Houston, 38 miles southeast of New Houlka, and 15 miles southeast of Okolona.
The port of Amory is 37 miles to the east of Houston, 57 miles southeast of New Houlka, and 24 miles to the east of Okolona. It has a connection to BNSF rail with an intermodal container to rail facility and a container to truck facility.
The closest port on the Mississippi River is at Rosedale, MS. Rosedale is 125 miles west of Houston, 150 miles west of New Houlka, and 175 miles west of Okolona. It has a connection to all Class I railroads via the Great River Railroad. It can handle over 550 tons per hour, has a 20,000 square foot humidity controlled warehouse onsite, and has an intermodal truck/rail transfer.
Air
Houston Municipal Airport is 2 miles SW of Houston. It has a 3800 ft runway and received a $150,000 grant last year to install runway lights.
Okolona Municipal Airport-Richard Stovall Field is 2 miles N of Okolona. It has a 3200 ft runway.
Tupelo Regional Airport is the largest, full-service commercial airport near Chickasaw County. It has a 6500 ft runway, commercial flights daily via Northwest Airlink and Delta Connection, a fully certified Air Traffic Control Tower, a Fixed Based Operation for ground services, and plans for a Free Trade Zone. The airport is 32 miles NE of Houston, 22 miles NE of New Houlka, and 26 miles N of Okolona.
Memphis International Airport is the largest air freight hub near Chickasaw County. It is 112 miles to the North of Houston, 105 miles N of New Houlka, and 118 miles NW of Okolona.
Fedex, UPS, USPS, and DHL carrier pickup and delivery are available in Chickasaw County.
Road
The nearest major interstate is I-55 which runs from the Mississippi-Louisiana State Line, south of McComb, via Jackson to the Mississippi-Tennessee State Line, south of Memphis, Tennessee.
US Highway 78/Proposed Interstate-22, when completed, will connect Memphis, Tennessee to Birmingham, Alabama, providing a connector for this region to interstates 40, 65, 55 and 20.
Over 30 major freight carriers serving the Southern United States provide service to Chickasaw County. They include:
- AAA Cooper Transportation
- ABF Freight
- Associated Trucking
- Averitt Express
- Bax Global
- Clark Freight Lines
- Con-Way Southern Express
- FedEx Freight
- Landstar
- Milan Express
- Nationwide Express
- Old Dominion Freight Lines
- Roadway Express
- Saia Motor Freight
- Southeastern Freight Lines
- UPS Freight
Conclusion
Based on our transportation analysis, Chickasaw County would be a favorable location for suppliers. The county is within a one-day drive to major cargo gateways as well as half of the population and manufacturing capacity of the United States. Chickasaw County has rail access, intermodal capabilities, and is within 20 miles of an inland waterway.
After reviewing three industrial park sites in Chickasaw County, we determined that each one is well within the radius for a Tier I supplier interested in locating near TMMMS. The transportation analysis model indicates the most optimal site selection for TMMMS vendors/suppliers among the three potential sites, prior to road infrastructure improvements, is New Houlka. The table below indicates total score per route, calculated using route segments, mileage, highway category, weight category, annual median daily traffic, and capacity.
| Rank | Site | Route | Miles | Time | Total Score |
|---|---|---|---|---|---|
| 1 | New Houlka | MS15-MS76-MS9 | 36.9 | 58 Minutes | 66.7 |
| 2 | Okolona | US45-US78 | 41.0 | 45 Minutes | 79.8 |
| 3 | Houston | MS15-MS32-US45 | 57.4 | 70.9 Minutes | 82.1 |
| 4 | New Houlka | MS15-MS32-US45 | 62.3 | 75.2 Minutes | 86.7 |
| 5 | Houston | MS15-MS76-MS9 | 45.3 | 64 Minutes | 87.6 |
| 6 | New Houlka | MS15-US78 | 42.5 | 56.2 Minutes | 96.6 |
| 7 | Houston | MS15-US78 | 51.3 | 71.8 Minutes | 97.8 |
Studies of existing Toyota Motor Manufacturing locations have indicated that “the distance from a county to Toyota is found to be significant in affecting location decisions of supplier plants(3)”. A study by Weiler, et al states that “automobiles are highly CPA (components, parts, and accessories)-intensive assembly-based products. As final assemblers lean-production automakers need to have CPA-suppliers nearby (within an average radius of approximately 150 miles in the present case) for JIT delivery(4).” As indicated by the drive time analysis map above, all three sites reviewed in Chickasaw County are within the 60 minute radius of the TMMMS facility. A decision to locate in Chickasaw County will allow a supplier to be well within that radius and to provide an efficient, cost-effective distribution channel to Toyota.
Notes/References
- AECOM Consulting (2003). Study of US 43 and US 80 Corridor Potential to Attract New Automotive Suppliers Based on Highway Improvements.
- County Traffic Flow data and County Legal Truck Weight data – Mississippi Department of Transportation, Planning Division.
- Murray, Matthew N. et al (1994). The Location Decision of Automotive Suppliers in Tennessee and the Southeast.>
- Weiler, Stephan et al (2001). The Evolution of a New Industrial District: The Automobile Industry in the American Southeast. Planning and Markets, Volume 4, Number 1.