The Nevada Governor’s Office of Economic Development is partnering with an out-of-state firm to create a new coalition that will work to create efficiency in supply chains in Nevada and in other neighboring states.
The new Southwest Supply Chain Coalition, being spearheaded by a partnership between GOED and Pennsylvania-based OnTrackNorthAmerica, will work to better connect markets and lower costs and simultaneously address urgent climate change, safety and congestion issues, GOED said in a release.
“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.”
According to information in GOED’s release, the coalition’s purpose is to develop a regional approach to coordinating the planning and investment in a 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, a firm that focuses on the transition of rail-enabled supply chain transportation, will work with counterparts in California, Utah, and Arizona to promote the Southwest Supply Chain Coalition.
The coalition is expecting to have multiple stakeholders involved: landowners, developers, Realtors, transportation and energy service providers, government agencies, economic development professionals, shippers, ocean carriers, legislators, regulators, planners and local elected leaders.
“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 use of rail is very low in Nevada’s supply chain from California.
“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.”
GOED said in its release, “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 benefit of the program would be to stage certain logistics activities within the state and Utah and Arizona over California’s port and metro areas. According to GOED, this would alleviate congested highways and improve 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.”
Contact Editor Jeffrey Meehan at jmeehan@pvtimes.com