Nevada Inland Port Study
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NEVADA INLAND PORTS [Type a quote from the document or the summary of an interesting point. You can position the text box Dr. anywhereAlan in the document. Use the Text Box Tools tab to change the formatting of the pull quote text Schlottmannbox.] IABILITY UNDING Spatial Economic V & F Concepts STUDY SEPTEMBER 2012 Financial Advisory Gaming & Hospitality Public Policy Research Real Estate Advisory Regional & Urban Economics RCG Economics LLC 3900 Paradise Road, Suite 209 Las Vegas, Nevada 89169 www.rcg1.com Nevada Inland Ports: Viability and Funding TABLE OF CONTENTS I. INTRODUCTION: NEVADA INLAND PORTS – VIABILITY AND FUNDING ..................................................... 1 INLAND PORT BENEFITS ................................................................................................................ 2 NEVADA ASSEMBLY BILL NO. 182 ................................................................................................. 5 APPENDIX: PERSONS & ORGANIZATIONS SURVEYED ................................................................................................... 8 PART I: NEVADA INLAND PORTS – VIABILITY AND FUNDING I. THE STATE OF WEST COAST PORTS .............................................................................................. I-1 PORT METRO VANCOUVER ......................................................................................................... I-4 PORT OF SEATTLE ...................................................................................................................... I-5 PORT OF TACOMA ..................................................................................................................... I-5 PORT OF PORTLAND .................................................................................................................. I-5 PORT OF OAKLAND .................................................................................................................... I-5 PORT OF LOS ANGELES ............................................................................................................... I-6 PORT OF LONG BEACH ............................................................................................................... I-6 MANZANILLO PORT ................................................................................................................... I-7 MANZANILLO PORT’S COMPETITIVE ADVANTAGES/DISADVANTAGES VS. CALIFORNIA PORTS ................... I-7 EFFECTS OF THE PANAMA CANAL EXPANSION ................................................................................. I-8 ENDNOTES ............................................................................................................................. I-11 II. WHAT IS AN INLAND PORT? .................................................................................................... II-1 ENDNOTES .............................................................................................................................. II-7 III. ATTRIBUTES OF AN INLAND PORT............................................................................................ III-1 ENDNOTES ............................................................................................................................. III-7 IV. LOGISTICS/DISTRIBUTION CENTERS: BACKGROUND FOR NEVADA POLICYMAKERS .............................. IV-1 INTRODUCTION ....................................................................................................................... IV-1 LOGISTICS: EMERGING ISSUES .................................................................................................... IV-1 TYPES OF DISTRIBUTION CENTERS ............................................................................................... IV-2 FULFILLMENT CENTERS ............................................................................................................. IV-3 REVERSE LOGISTICS CENTERS ..................................................................................................... IV-3 E-COMMERCE ........................................................................................................................ IV-5 NEVADA WORKFORCE: ASSESSMENT TO MEET LOGISTICS CLUSTER NEEDS ......................................... IV-6 APPENDIX: LOGISTICS & OPERATIONS CLUSTER, KEY OCCUPATIONS ................................................................. IV-9 NEVADA OCCUPATIONS: RANKED BY LOCATION QUOTIENT ........................................................... IV-10 NEVADA OCCUPATIONS: RANKED BY HOURLY WAGE ................................................................... IV-11 i Nevada Inland Ports: Viability and Funding TABLE OF CONTENTS (CONT.) CLARK COUNTY OCCUPATIONS: RANKED BY LOCATION QUOTIENT ................................................. IV-12 CLARK COUNTY OCCUPATIONS: RANKED BY HOURLY WAGE ......................................................... IV-13 WASHOE COUNTY OCCUPATIONS: RANKED BY LOCATION QUOTIENT .............................................. IV-14 WASHOE COUNTY OCCUPATIONS: RANKED BY HOURLY WAGE ...................................................... IV-15 BALANCE OF STATE OCCUPATIONS: RANKED BY LOCATION QUOTIENT............................................. IV-16 BALANCE OF STATE OCCUPATIONS: RANKED BY HOURLY WAGE .................................................... IV-17 ENDNOTES ........................................................................................................................... IV-18 V. NEVADA FREIGHT OVERVIEW ................................................................................................... V-1 VI. INTERVIEWS: OVERVIEW ....................................................................................................... VI-1 PROCESS ............................................................................................................................... VI-1 KEY RESPONSES ...................................................................................................................... VI-2 A. INTERVIEWS: LOGISTICS CLUSTER .................................................................................................... VI-4 E-COMMERCE/FULFILLMENT CENTERS ........................................................................................ VI-5 REVERSE LOGISTICS ................................................................................................................. VI-6 MANUFACTURING COMPONENT ................................................................................................ VI-7 MARKET PERSPECTIVES ............................................................................................................ VI-8 CASE STUDIES......................................................................................................................... VI-9 B. INTERVIEWS: INLAND PORTS ......................................................................................................... VI-13 WEST COAST PORTS .............................................................................................................. VI-14 COMPETITION ...................................................................................................................... VI-15 ALAMEDA CORRIDOR ............................................................................................................. VI-16 U.S. INLAND PORTS .............................................................................................................. VI-17 INLAND PORTS IN NEVADA ...................................................................................................... VI-18 NEVADA COMPETITION .......................................................................................................... VI-19 C. INTERVIEWS: TRANSPORTATION .................................................................................................... VI-20 GENERAL INTERVIEW COMMENTS ............................................................................................ VI-21 RAIL EFFICIENCIES ................................................................................................................. VI-22 CURRENT RAIL CAPACITY IN NEVADA ........................................................................................ VI-24 RAIL DEMAND ...................................................................................................................... VI-25 RAIL FACILITIES ..................................................................................................................... VI-27 FUTURE RAIL EFFORTS ........................................................................................................... VI-28 TRUCK EFFICIENCIES .............................................................................................................. VI-29 TRUCK COSTS ....................................................................................................................... VI-30 TRUCKING: GENERAL INTERVIEW COMMENTS ............................................................................. VI-31 AIR CAPACITY ....................................................................................................................... VI-32 MCCARRAN INTERNATIONAL AIRPORT ...................................................................................... VI-32 RENO/TAHOE INTERNATIONAL AIRPORT .................................................................................... VI-33 ii Nevada Inland Ports: Viability and Funding TABLE OF CONTENTS