Jim Covington, the Greater Memphis Chamber’s Vice President of Logistics and Aerotropolis Development, thumbs through a 215-page Memphis infrastructure study, quickly locating the highlights.

First there are the findings on the capital investment that railroad companies have made in Memphis. Then a chapter on airport improvements. And it is followed by the classification of the city’s port as the fourth largest inland harbor in the United States.

“Memphis is a large, important transportation distribution center,” Covington says, pausing somewhere between the chapter on intermoadal shipping and Memphis’ great warehouse capacity. “Logistics and distribution of goods is our strength. That's our job, and because transportation truly is the job of Memphis, the Bluff City is about to get a lot busier.”

If transportation truly is the “job” of Memphis, then the Bluff City is about to get a lot busier, according to a study performed by IHS Global Insight Inc. and commissioned by the Chamber.

The Chamber enlisted Global Insight for the study mainly to determine whether the city’s current transportation partnerships are sound and to find out where Memphis should look to improve on its infrastructure.

The in-depth analysis of the city’s transportation infrastructure outlines Memphis’s assets, what benefits can be expected due to recent investments and what improvements are needed to ensure the area remains a hub for the world.

“We wanted to identify our strengths in relation to the global economy,” Covington said. “Memphis is in a great position to take advantage of our strengths.”

One key to the forecasted increase of activity in Memphis stems from predictions on how the world’s economy will rebound following the recession.

South America, Eastern Europe and parts of Asia are expected to bounce back first, creating an increase in demand for imports in the United States. How those goods will make it to market, according to the report, will be through container traffic — which makes Memphis an attractive distribution point.

“When the recession ends, there is going to be a big upsurge in container traffic,” said Joseph Waldo, Global Insight Chief Consultant. “Essentially, there is going to be growth in container traffic because the economy is growing and many shippers want the lower cost of water and rail. And they will find that those modes work for them in terms of their supply chain.”

In 2007 alone, 11 million tons of freight terminated or originated in Memphis via truck, barge and train. Those numbers are expected to increase thanks to more than $500 million in recent investments for new or expanded intermodal facilities by Class I railroad companies.

Some examples include Canadian National Railway Co.’s newly renovated, $100 million Memphis rail yard, which is the second largest CN facility of its kind in the United States.

Then there is the $129 million Norfolk Southern Corp. facility, scheduled to be built in Rossville in coming months. Additionally, a $200 million expansion of Burlington Northern Santa Fe Corp.’s intermodal facility near Lamar and Shelby Drive was recently completed in October.

“The railroad companies have put a significant amount of investment in their rail system, and they’ve also put a significant amount of investment in Memphis,” Waldo says. “Obviously the railroads anticipate a large increase in rail in the future.”

In summarizing just how important the recent investment is for the city’s future, the report made a bold comparison to the potential of rail and the city’s largest employer. “Intermodal rail has the potential to impact Memphis similar to that of FedEx...bolstering the citys attractiveness as a national distribution hub,” it concluded.

Besides rail, the study noted other infrastructure strong points in Memphis that should pay future dividends. The nearly $1 billion in improvements made by Memphis International Airport over the past 15 years should continue to be key to economic development, the study says.

Also, a planned expansion of the Panama Canal should create an increase in traffic in the Gulf of Mexico, subsequently increasing river traffic in the area. Memphis distributed 21 million tons of freight through its port in 2007. But even though signs point to a bright future in Memphis in the coming years, the study pointed to challenges and needs.

Chief among these concerns are 25 improvements that the study said are needed to improve the area’s highways and roads. At the top of that list is the I-22 corridor, which sits near Lamar Avenue and Shelby Drive. The highway connects Memphis to Atlanta and Birmingham and has long been a main thoroughfare for trucks. The recent expansion of the nearby BNSF intermodal yard is expected to only make congestion in the area worse.

Typically, intermodal facilities depend on trucks to deliver container freight to its final destination. This means that even though rail cars may have replaced the need for some long-haul truck deliveries, more trucks will be driving into the city to pick up freight from intermodal facilities.

According to the study, 88 percent of freight coming into Memphis travels on highways like I-40, I-55 and US 78 proving that trucks will continue to be a vital role in Memphis.

“If we double our intermodal activity we won't be able to take advantage of it if trucks can't make connections through our highways,” Covington says. “It is critical that we make those connections, especially in the Lamar/I-22 corridor and around the airport.”

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You can download complete logistics studies by visiting the Greater Memphis Chamber's Aerotropolis page.