Why new BNSF facility could be a ‘game changer’ for Utah’s economy

SALT LAKE CITY — Utah officials say a new intermodal facility near Salt Lake City International Airport is a “game changer” for the state’s supply chain.

Gov. Spencer Cox and Utah Legislature leadership were on hand Thursday as BNSF Railway opened the new 43-acre facility within Salt Lake City’s northwest quadrant, which will be operated through a partnership with Patriot Rail and the Utah Inland Port Authority.

The new facility will increase the nation’s second-largest freight operator’s connection between the West Coast and Utah, linking it with the rest of its network. It also offers Utah businesses new shipping options and better access to global markets, state officials say.

The changes likely won’t be noticed immediately, but Utah House Speaker Mike Schultz says it should improve shipping costs and make it easier to ship goods in and out of the state. These can help lower prices for businesses and consumers in the long run, Schultz pointed out.

“This is a game changer for Utah’s economy,” said Abby Osborne, board chairwoman for the Utah Inland Port Authority. “By increasing intermodal capacity and introducing new competition, we’re unlocking more opportunity for Utah manufacturers, shippers and communities.”

Union Pacific has historically controlled most of the rail shipping in the state, but Patriot Rail has a presence as well. It owns the Salt Lake Garfield & Western Railway, which maintains a line on the west side of Salt Lake City, as well as the Utah Central Railway in Ogden.

Under the partnership, Patriot Rail will provide “terminal operations and infrastructure support” at the facility, which is located at 6199 W. North Temple, about 5 miles west of the airport. Brandy Christian, the company’s CEO, said the new facility “meets the demands of today’s economy” and also puts the state in a position for greater long-term success when it comes to international logistics.

Its opening comes as the railroad wars heat back up in a new era.

Union Pacific unveiled this week a $85 billion proposal to buy Norfolk Southern, potentially setting up the first transcontinental railroad operated by one company in the nation’s history. BNSF and Union Pacific also clashed over some of the logistical details of the new Utah facility, including the crews needed to handle some of the trains between California and Utah, the freight news outlet FreightWaves.com reported last month.

But BNSF leaders see the new Utah facility as a key piece to bolster its service.

“This new facility is an exciting opportunity to improve our capacity and efficiency as the industry’s intermodal leader, providing more flexible, competitive options for our customers,” said Tom Williams, executive vice president and chief marketing officer of BNSF. “This new facility will strengthen our supply chains from the West Coast to Utah and beyond.”

 

Recent: UDOT wants to know what you think about its finished projects in Salt Lake