Southwest Supply Chain Coalition to Address Freight Transportation Issues

August 30, 2021

CARSON CITY, Nev. – The Nevada Governor’s Office of Economic Development (GOED) is partnering with OnTrackNorthAmerica to create the Southwest Supply Chain Coalition that will better connect markets and lower costs, while at the same time addressing urgent climate change, safety, and congestion issues.

“Supply chains extend beyond individual companies, beyond individual industries, and beyond state borders,” said Kris Sanchez, GOED Deputy Director. “The supply chains of California, Nevada, Utah, and Arizona are inextricably linked and growing chaotically.”

The purpose of the Coalition is to develop a regional approach to coordinating planning of and investment in the supply chain transportation infrastructure that serves the commercial activities of each jurisdiction, which are mutually dependent for the production, import, export, delivery, and utilization of goods.

GOED and OnTrackNorthAmerica will work with counterparts in California, Utah, and Arizona to promote the Southwest Supply Chain Coalition. Landowners, developers, realtors, transportation and energy service providers, government agencies, economic development professionals, shippers, ocean carriers, legislators, regulators, planners, and local elected leaders are all expected to participate.

“Connecting Nevada, Utah, and Arizona businesses with California’s ports and markets by rail boosts economic development, trade, and supply chain efficiencies in all four states,” said Michael Sussman, OnTrackNorthAmerica Chairman and CEO.

The Southwest Supply Chain Coalition intends to create a breakthrough in multi-state, results-producing transportation planning. Economic development can then advance more sustainably, informed by productive engagement among each state’s public agencies, port authorities, economic developers, business, communities, and transportation providers.

“California’s supply chains have expanded into Nevada, Arizona, and Utah for warehousing, distribution and production,” Sanchez said. “Yet, there is only one warehouse in Nevada that is receiving or shipping goods by rail. Meanwhile, 70 percent of all trucks traveling in Nevada are coming from or going to California.”

The goal of the OnTrackNorthAmerica effort is to adopt whole-systems, regional, and common-sense approaches to logistics and land use that will benefit all stakeholders. A huge benefit of this program would be to stage certain logistics activities in Nevada, Utah, and Arizona rather than the densely populated California metro and port areas, thereby alleviating congested highways and improving the balance of truck and rail transportation for systemwide efficiency.

“Supply chains need to be redesigned to support reshoring of manufacturing and colocation of processing and distribution facilities within the region,” said Sussman. “The trucking industry benefits from more short-haul movements. Short haul trucking drives efficiency, eliminating costly layovers due to hours-of-service regulations. Short haul drivers have a better quality of life and are easier to retain.”

 

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About the Governor’s Office of Economic Development

Created during the 2011 session of the Nevada Legislature, the Governor’s Office of Economic Development is the result of a collaborative effort between the Nevada Legislature and the Governor’s Office to restructure economic development in the state. GOED’s role is to promote a robust, diversified, and prosperous economy in Nevada, to stimulate business expansion and retention, encourage entrepreneurial enterprise, attract new businesses, and facilitate community development.

 

About OnTrackNorthAmerica

OnTrackNorthAmerica is a 501c3, non-profit transportation policy organization that develops innovative approaches to public-sector planning and policymaking and public-private sector industrial collaboration. OTNA had a significant role in the 2021 Nevada State Rail Plan. To contact OnTrackNorthAmerica please call 215-564-3004, or email Will Maus at wmaus@ontracknorthamerica.org