Utah Inland Port Authority

from Business In Utah - 2021

by Utah Governor's Office of Economic Opportunity

Quality of Life

By: Utah Inland Port Authority

Why Utah, Why Now?

A third of Utah’s Gross Domestic Product is dependent on the logistics industry — and, fueled by consumer demand, that number is expected to grow. But as we witnessed in 2020, an unknown shock to the supply chain can disrupt the balance of our global logistics network and our daily lives.

The Utah Inland Port Authority (UIPA) supports the logistics systems that make up the economy’s backbone. That means using Utah’s geographic advantages and optimizing the rail, road, and air infrastructure in place to make cargo movement more efficient and sustainable for generations to come.

Utah’s unique position in the supply chain includes direct connections to three major global ports in California, which serve as the international gateways for nearly 80% of Utah’s import and export value by sea. Those goods funnel throughout Utah, which is why the Port Authority has a mandate to establish and oversee a statewide network.

Up until now, the logistics industry in Utah has been left to grow locally and organically. Having an organization to plan and oversee all the state’s logistics network components maximizes the economic benefit and asserts the public will while also mitigating community and environmental impacts.

“Utah’s inland port is not a place, it’s a system — and a system for all of Utah,” said Jack Hedge, executive director of the UIPA. “Strengthening that system connects Utah businesses to the global market in a more cost-effective way and helps prepare their assets, workforce, and operations for the future.”

UIPA’s focus on cargo flows and how truck and rail goods are moved is pivotal to increasing utilization and expanding access for commerce throughout the state. UIPA is working to identify what regional logistics assets are already available, which will help inform the creation of satellite ports. Those ports will form a network that integrates and connects to major distribution points around the United States. This network will bring more family-wage jobs and smart logistics infrastructure, next-generation sustainable technology, industry, and trade opportunities to rural Utah and the state.

“There’s a misperception that having a port only adds traffic, development, and pollution. But logistics is changing rapidly, and the market is demanding a move to more sustainable practices,” Hedge said. “UIPA’s role is often not about adding more, it’s about being smarter. We no longer have to build dirty logistics. You inherit them; you don’t have to rebuild them.”

The UIPA has the unique opportunity to create the first logistics hub in the country to incorporate policies, standards, and incentives that drive technology and innovation in emissions and air quality. Current UIPA agreements with Rocky Mountain Power, Dominion Energy, and AVF Energy will help develop renewable energy generation projects, including solar, hydrogen fuels, and renewable natural gas. UIPA is actively engaged with state and municipal agencies, monitoring air and water quality to establish baseline levels and create master plans for the current jurisdictional area in northwest Salt Lake County. Using tax differential funding, UIPA can promote sustainable building practices and upgrades to company fleets.

Being at the forefront of technological advancement will be critical for the state’s position in global logistics going forward. Utah already has a fiber optic backbone built-in as part of the state’s enviable infrastructure, which can be used to revolutionize how logistics are done. UIPA provides the expertise for research and development of smart technology with logistics applications. Those innovative possibilities, Hedge says, make Utah’s inland port the most significant impact opportunity the state has had in decades.

“I took this position because it’s one of a kind, and we all have a chance to be a part of something unique and exciting — where Utah is leading the way,” Hedge said.