Feature Story
Utah an Important Hub for Freight Movement
Second in a Series on Transportation in Utah

Most likely, the many business and government dignitaries on hand in 1869 for the driving of the ceremonial golden spike, which joined the Union Pacific and Central Pacific Railroads at Promontory Summit in Utah, didn't know or care that the new transcontinental rail system would help make Utah the transportation "crossroads of the west."

In the 140 years since the driving of the golden spike, Utah's rail systems, highways, pipelines and international airport have made the state a global gateway for the distribution of goods and services as well as an essential hub in the distribution system to the Western United States. Transportation technology has come along way since 1869. Today, trucking is the primary source of freight movement through Utah, followed by pipelines, heavy rail and air freight.

"Utah's geographical location in the west, relative to highway and rail corridors, creates a tremendous economic advantage for the state as a warehousing and distribution center," says Utah Department of Transportation Railroad and Freight Planner Daniel Kuhn. "The resulting concentration of freight carriers and warehousing makes Utah very attractive to manufacturing and distribution businesses."

Trucking
On any given day thousands of tractor-trailers will travel Utah roads. In fact, Utah highways have the highest percent of truck traffic in the nation (21 percent as compared to the national average of 11 percent), says Kuhn. "Utah is the crossroads for freight traffic traveling to and from the east and west coasts on Interstate 15, Interstate 70, Interstate 80 and Interstate 84," he adds. "The state's primary freight highways are a vital component of North America's food and agricultural products distribution network. Much of the products are shipped from growing areas in the West to population centers in the Eastern U.S. and Canada."

Seven major long distance highway freight routes converge along various points on Interstate 15 in Utah, affecting freight flow across North America. Other primary freight corridors in Utah include U.S. Highways 89, 40 and 6.

For logistical reasons, many large refrigerated truck companies maintain terminals along Utah's Wasatch Front. One such operation is C.R. England, North America's largest refrigerated truck operator and one of the foremost trucking companies in the world. In 2008 England trucks averaged 10,000 trips per week, serving Mexico and all of the lower 48 states.

Pipelines
Surprisingly, pipelines are Utah's second largest mode of shipments, by weight. Utah is home to 19 different pipeline operators and an extensive network of more than 4,500 miles of pipe, delivering products such as crude oil, refined petroleum products, propane, carbon dioxide and phosphate rock slurry to end points that would otherwise require transportation via approximately 2,164 trucks, according to the Utah Department of Transportation's Planning Division.

Rail
Utah is strategically located at the center of Western America's railroad network. In fact, six major routes of the Union Pacific Railroad converge at Wasatch Front rail yards and refueling terminals. Additionally, BNSF Railway provides limited service to Utah via trackage rights over Union Pacific rail lines between Colorado and Northern California.

Furthermore, Union Pacific Railroad's 240-acre, $90 million state-of-the-art intermodal facility on the west side of Salt Lake City is one of the largest on the Union Pacific system and an important rail nerve center. The facility processes 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.

Because the facility is an inland port, shipping containers loaded with goods are transferred between ship and rail line, and then transferred to trucks at the intermodal facility for final delivery to their destinations, thus making the intermodal facility an important nerve center for distribution to the western U.S.

EDCUtah President and CEO Jeff Edwards says the intermodal hub marries rail with the interstate highways in a way that makes both more efficient. Furthermore, it 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," he says.

Non-intermodal carload freight is also a major part of rail service through Utah, as lumber, chemicals, machinery and food products are transported through Utah for destinations across the nation.

Rail access is often a critical component in the location or expansion of businesses in Utah. Approximately 17 business or industrial parks in the state offer rail access, from Tremonton on the north to Cedar City on the south. Port 15 Utah, an 800-acre business park in Cedar City, is drawing increased interest because of its rail access. The Union Pacific rail line to Cedar City runs through the middle of the park. Other rail-served business and industrial parks in Utah include the Utah Industrial Depot in Tooele, Business Depot in Ogden, and the Freeport Center in Clearfield.

Air Freight
The Salt Lake City International Airport is an important regional air cargo hub. While aviation handles only a small fraction of all Utah freight, the airport puts shippers within hours of any point in the nation, Canada and Mexico. Airport officials say 22 cargo carriers, including Airborne Express, Ameriflight, DHL, Emery, FedEx, and United Parcel Service, handle approximately 550 million pounds of air cargo and mail annually. Air cargo volumes at the airport have grown at an annual average rate of nine percent over the past 10 years and the growth in cargo activity has necessitated the development of a new cargo area.

"The ability to get product to market the quickest and cheapest is a huge factor in business location and expansion decisions," says Edwards. "Utah has many logistical advantages, thanks to its location and the geography of the West. The combination of its location, solid infrastructure, young workforce and business-friendly environment make the state an unparalleled place to do business."