The tri-state region of Tennessee, Arkansas, and Mississippi is an area Panattoni Development Company knows well. Specializing in the development and construction of large industrial distribution and manufacturing buildings throughout the United States, Panattoni has developed more than 10 million square feet in Memphis over the past nine years, and has accumulated a land bank of more than 1,000 acres in the Memphis-North Mississippi market area.

Al Andrews, local area partner for Panattoni's Memphis and Northern Mississippi regional office, cites Shelby County in Southeast Memphis and Desoto, Miss., directly across the state line, as the areas where most industrial development in the region has taken place.

 

"Two new interstates are coming into Memphis in the near future," says Muller. "Interstate 69, which is referred to as the NAFTA highway, connects Mexico and Canada, a corridor which accounts for 40 percent of all manufacturing in the country. The second, Interstate 22, is being built and improved in Alabama. It will be a good southeast connection for the region, connecting Memphis to Birmingham and Birmingham to Atlanta."

 

These connecting sections of the Interstate are expected to be completed and open to traffic some time in 2008.

The expansion of its highway system will make moving freight into and out of Memphis even more efficient for companies such as LTL carrier ABF Freight System.

 

 "We provide seamless coverage throughout the continental United States, serving most locations in three days or less," says Don Henley, ABF's regional vice president.

Belz's industrial parks offer a range of location opportunities in the area. Rivergate's 425 acres serve as a cornerstone to Memphis' rapidly developing industrial area with all the amenities one would expect from a major port. Rivergate is the largest privately owned and developed multi-use industrial port on the U.S. inland waterway system. The development is one mile from a full highway interchange at Interstate 55 where more than 100 truck lines are home based.

Memphis will continue to see an increased demand for modern industrial space, according to Andrew Groveman, senior vice president, Belz Enterprises. "Because of our position as America's distribution center, Memphis is poised to see continued growth," he says. "As a result, many companies entering the Memphis market will require the advanced warehouse and manufacturing developments that can be found in our portfolio."

Global Material Services (GMS), which is 50 percent owned by Belz Enterprises, recognizes the area's intermodal facilities as a strategic advantage in providing efficient distribution. GMS has three river terminal/warehouse/logistics operations in the Memphis area with two on Presidents Island in Memphis and one in West Memphis, Ark. 
 

The location of these terminals has been a tremendous benefit for GMS. "The Mississippi River provides a slack water harbor for safe and efficient barge loading and unloading operations," notes Thomas Murphree, vice president of market and business development for Global Material Services. "Five Class I railroads serve Memphis and all have access to Presidents Island. A large number of flat bed and van trucking companies serve the area as well." 

GMS has used Memphis' solid foundation to grow into one of the largest and most diversified warehouse and logistics companies in the Inland Waterway System. It now operates 28 terminals domestically and internationally.

But when it comes to infrastructure, Memphis is not a city content to rest on its laurels. The Chamber is looking into the development of an intermodal north bridge crossing of the Mississippi River to serve trains, trucks, and passenger vehicles.

 

Memphis-based Fullen Dock is changing all that, however, with its agreement to provide container-on-barge terminal services for regional ocean and inland waterway container service provider, Osprey Line.

 

"Traditionally, cheap fuel and clear highways have kept container freight moving by road or rail," notes Chalk. "But the rising cost of diesel and traffic congestion have  many supply chain managers rethinking the container-on-barge strategy. We're proud to be on the leading edge of this trend."

By increasing the use of waterways, container-on-barge shipping also relieves truck and rail congestion. "A tugboat pushing a container-on-barge shipment is seven times less polluting than trucking the containers," says Rick Couch, president of Osprey Line. As an Osprey terminal, Fullen Dock offers full depot level container services with warehouse storage and transfer. "The Memphis market offers a significant growth opportunity for our company," he says.

The partnership between Osprey Line and Fullen Dock closely parallels a cooperative marketing agreement forged last year between the Port of Greater Baton Rouge, the Port of Shreveport-Bossier, and the International Port of Memphis.

"The advent of the short sea shipping service and moving containers on barges to and from Memphis will complement the current intermodal activities of this region," says Don McCrory, executive director of the Port of Memphis.

The International Port of Memphis occupies a large portion of the Tennessee and Arkansas sides of the Mississippi River. It is the second- largest inland port on the lower Mississippi and the fourth-largest in the nation. The national leader in inland handling of foreign import tonnage, the port is recognized as one of the fastest-growing ports of entry by U.S. Customs.

FedEx, the biggest name in the city when it comes to supply chain management, is also committed to investing in the growth of the community. Aside from the advantages associated with the FedEx super hub, the shipping giant has invested in the University of Memphis with the recent opening of the FedEx Institute of Technology, home of the FedEx Center for Supply Chain Management.

The Center is widely known for research on such I.T.-related issues as RFID tags and applied complex decision modeling. But its academicians are still mindful of the industry responsible for Memphis' very existence.

"We also study the transition points within the supply chain  --  the physical and data connections between transportation modes and storage  --  and look for opportunities to improve the system," says Dr. Brian Janz, assistant director of the Center for Supply Chain Management.

Part of the Institute's success comes from the faculty's deep-rooted interest in what it does. "We look at the research projects we conduct as applied research," says Ernie Nichols, director of the FedEx Center for Supply Chain Management. "If we do it right, we can publish the results of our work and impact the entire industry. The consulting we do provides great value to our clients and at a fraction of the cost of most consulting firms."

The work the Center does, however, benefits more than just its clients. "When we deal with a business problem, the faculty gets real-world experience that they then bring back into the classroom," notes Nichols. This hands-on experience strengthens them as professors and helps contribute to a more experienced and educated workforce for the community.

Additional FedEx investments in the Greater Memphis area include
a $1.8-billion network expansion plan taking shape in the form of a new 93-acre package distribution hub in Olive Branch, Miss. The 330,000-square-foot facility, to be located in the DeSoto Distribution Center, will be the second major FedEx Ground sortation center in the Memphis area. When it opens in 2006, the new hub will feature the latest automated material handling technology, which is designed to process 30,000 packages per hour.

The company's current hub in Memphis hasn't been left out of the action either. The facility recently underwent a $23-million, 47,000-square-foot expansion. The project included the installation of the most advanced material handling systems, increased the number of pickup and delivery van positions from 40 to 72, and brought the facility's total size to 233,000 square feet.

This ongoing construction, coupled with a skilled workforce, highly developed transportation network, and Memphis' notoriety as the warehouse and distribution hub of the country all contribute to bringing tremendous growth into the Memphis area, notes Calvin Ozier, president of UWT Logistics.

"We streamline customers' supply chains by helping them considerably reduce inventory costs. Because they can turn product so quickly here in Memphis, they do not have to hold as much inventory. This enables them to significantly reduce costs on an annual basis," he adds.

Being in Memphis has allowed UWT Logistics to better serve its customers. "In Memphis we have plenty of space available for warehousing and distribution. Our workforce is geared to the operations of 3PLs  --  pick, pack, ship and high labor activities  --  and the Memphis area supports those activities very well," says Ozier.

With the region's staggering growth, Memphis is no longer the country's best-kept secret when it comes to distribution and logistics.

"Every week when I pick up the paper," notes Ozier, "I see new development of one-million-plus square-foot facilities going on, and I read about companies continuing to invest millions and millions of dollars in strategies that will encourage supply chain logistics in this area."

As a result of this growth, he adds, the rates for warehouse and storage rental are very competitive. "There is so much space available that businesses get a lot for their money," Ozier says.