Feature

Union Pacific Intermodal Facility an Important Nerve Center for Distribution

Utah's efforts to become a major player in the distribution industry took a significant leap forward three years ago, when Union Pacific Railroad relocated its intermodal operations from a 25-acre site near Beck Street in Salt Lake City to a 240-acre, $90 million state-of-the-art facility located at 1045 S. 5500 West.

Today the intermodal facility is one of the largest in the Union Pacific system and a hub of activity, processing 10 or more trains a day as they arrive from or depart to locations such as Long Beach, Denver and Chicago, as well as other Union Pacific trains that stop to pick up additional freight enroute to other destinations. Containerized goods are transferred from railcars to trucks or trucks to railcars around the clock. John Hall, Union Pacific's manager of intermodal operations in Salt Lake City, says long-haul and day-haul trucks enter and exit the facility through a computerized automatic gate system (AGS) that utilizes biometric security to identify drivers. Physical inspections of containers have been replaced by automated cameras, which take pictures of all sides of each container for identification and damage control purposes.

"By using the AGS we have reduced the check-in and checkout time per truck from six or seven minutes to 45 seconds," Hall says. "It's really an efficient system."

Union Pacific intermodal trains pulling 100 cars or more leave the Salt Lake City facility for Denver five days a week; for Chicago six days a week; for Long Beach six days a week; and in an expedited run to Chicago five days a week. Union Pacific currently has two full-time employees at the intermodal facility. Hall estimates another 130 people or more have jobs directly connected to intermodal facility operations.

Recently, EDCUtah economic developers toured the intermodal hub where they were able to see the operations first hand. The tour was arranged by Industrial and Investment Specialist Edward E. Johnson, CCIM, SIOR, and Industrial Specialist Andy Wheeler, both from the real estate brokerage firm NAI Utah.

"We have a vested interest in economic development and like to partner with EDCUtah wherever we can," says Wheeler.

Jeff Edwards, EDCUtah's president & CEO, says Union Pacific's Salt Lake City intermodal hub is important to economic develop for a variety of reasons: "First, the facility is an inland port, meaning it is tied to a seaport. As such, shipping containers loaded with goods are transferred between the ship and the rail line, and then transferred to trucks at the intermodal facility for final delivery to their destinations. The goods in the containers are only loaded or unloaded at their point of origin or final destination. Second, the intermodal facility is a nerve center for the distribution network. It marries the rail with the interstate highways in a way that makes both more efficient. Third, the facility is a magnet for attracting companies that want to be close to a rail distribution center. Because it is also located near Salt Lake City's newly activated Foreign Trade Zone, we expect the facility will continue to grow in its importance as a distribution nerve center."

Dan Harbeke, Union Pacific's local director of public affairs, says the facility also contributes to safer roads and a cleaner environment, since one intermodal train can take between 200 to 300 tractor-trailers off the road. For example, he says Idaho potato, apple and onion growers are shipping their produce to the Union Pacific facility in Utah for rail distribution to states in the North East.

"Without the intermodal trains, long-haul trucks would be required to move the produce to eastern markets," Harbeke adds. "The general public doesn't usually know it, but we can move one ton of freight over 800 miles on one gallon of diesel fuel--that's the efficiency of our rail system."

Hall says Union Pacific's Salt Lake facility is capable of handling 250,000 "lifts" annually--the loading or unloading of 250,000 containers--and is capable of taking on more capacity as the economy improves.

"Like everyone else, times are tough right now for the American freight rail industry, but Union Pacific is committed to helping get Salt Lake City and the country back on solid ground economically," Harbeke says.

CALENDAR

- Apr. 15:  Executive Committee (EDCUtah)
- Apr. 15-17:  Utah League of Cities and Towns (St. George)
- Apr. 14:  Senator Bennett's 8^th Annual Rural Business Conference (Heber Valley-Zermatt Resort in Midway)
- Apr. 15-17:  Utah League of Cities and Towns Midyear Conference (Dixie Center, St. George)
- Apr. 26-28:  CoreNet (Dallas, TX)
- Apr. 29-May1:  SME (San Diego, CA)
- Apr. 30:  New Investor Orientation (EDCUtah)
- May 2-6:  IAMC (Asheville, NC)
- May 4-7:  Windpower 2009 (Chicago)
- May 14 or 27 (TBD):  EDCUtah Board meeting (Hope Gallery)
- May 17-20:  ICSC (Las Vegas)
- May 18-21:  SAMPE (Baltimore)
- May 18-21:  BIO (Atlanta)
- June 3:  EDCUtah Golf for Grants Match Grant Tournament (Eaglewood Golf Course in North Salt Lake). This is the main fundraiser for EDCUtah's Community Match Grants Program. Sponsorship opportunities for 2009 are limited to investors in EDCUtah and are now available. Please call Arthur Franks, membership director for EDCUtah at (801) 323-4242 to secure your sponsorship opportunity!
- June 11:  Quarterly Investor Update (TBD)
- June 16:  New Investor Orientation (EDCUtah)
- June 17:  Executive Committee Meeting (EDCUtah)
- July 20:  OIA Thought Leader (TBD)
- July 21-24:  Outdoor Retailer Summer Market (SL Convention Center)
- Aug. 10-13:  AUVSI (Washington, D.C.)