Supply chain coalition to address Western rail and trucking inefficiencies

Supply chain coalition to address Western rail and trucking inefficiencies
Image by Pit Karges from Pixabay

CARSON CITY—The Governor’s Office of Economic Development on Monday said it will work with a non-profit transportation policy organization to create the Southwest Supply Chain Coalition. The goal of the partnership is to address supply chain infrastructure needs to better connect markets and lower costs while also addressing sustainability.

GOED is working with OnTrackNorthAmerica, which also worked with the state on development of the 2021 Nevada State Rail Plan. That plan identified the need to create efficiencies within industrial supply chains and address an out of balance relationship between truck and rail transportation.

Counterparts in California, Utah and Arizona will be tapped to join the coalition, along with a long list of stakeholders including landowners, elected officials, realtors, shippers and carriers.  

“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.”

Officials said they hope to use a regional approach to planning and developing the supply chain that will better serve the economic interests of each jurisdiction—all of which are mutually dependent—while also addressing inefficiencies, climate change, safety and congestion issues.

“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% of all trucks traveling in Nevada are coming from or going to California.”

According to a statement from GOED, one benefit to the program would be to “stage certain logistics activities in Nevada, Utah and Arizona rather than the densely populated California metro and port areas.” The result of this would be an increase in short-haul trucking, something experts say increases efficiency and improves quality of life for drivers.