Enhancing ports could help manufacturers compete globally. (Regional: North Mississippi).

What do ports have to do with competing in the global economy? More than you might think. And port directors in North Mississippi are aware that it will take a lot more that just loading and unloading barges in order to help the region compete in the global economy.

"When you look at the cost of a manufacturer doing business, transportation and logistics can account for a third of their total costs," said

Scott Hercik, transportation advisor for the Appalachian Regional Commission (ARC) in Washington, D.C., said, 'Transportation and logistics can be equal labor costs, so it is a huge element. At the same time, what we also find is when you are located in an area with good multi-modal transportation-good railroads, roads and ports-in some cases competing, the cost of shipping can drop by 20% to 25%. What that means is you are more able to keep the businesses you have and attract new businesses.

The ARC is working with ports in North Mississippi on the Tennessee-Tombigbee Waterway to enhance the ports, and the ports ability to interface with highway and railroad transportation systems. Hercik says that, at the end of the day, the winner from enhancing the ports competitiveness will be not just the ports, but the entire regional economy.

The ARC was established in 1965 to improve the depressed economy of the Appalachian region. The agency's primary effort has been to develop a good highway system with the idea that to move the region forward economically, it was necessary to have good access to markets and suppliers. But moving into the future, it will be increasingly important to also enhance other modes of transportation.

"The world is changing," Hercik said. "If we are going to be successful in the global economy, we have to look beyond highways. Goods move tremendous distances. So in addition to highways, we have to look at waterways, rail and air. It is that whole package of transportation services that we must develop in the 21st century if we are going to compete in the global marketplace."

Hercik said ports in North Mississippi are doing a good job responding to the challenges.