Port of Elko slated as rail transloading facility

What initially began as a project to see if a rail-truck transloading facility could be developed in Elko County has suddenly been transformed into a fast-track effort to create the third Port of Entry in Nevada.

The two existing ports are in Las Vegas and Reno.

While awaiting action by the Nevada legislature to award a $1 million grant to Elko County, that county's commissioners unanimously have voted to purchase up to 1,000 acres of land six miles east of downtown Elko.

The land presently is owned by four private landowners.

Total purchase price has been estimated between $1.5 and $2 million.

Total estimated cost to purchase and develop the site into a full-fledged transloading facility could run upwards of $7 million.

Transloading facilities are used to transfer materials between rail, truck and air carriers.

Spearheading the effort, says Elko County's Economic Diversification Authority Executive Director Elaine Barkdull, is Lt.

Gov.

Lorraine Hunt who has been joined by State Sen.

Dean Rhoads, R-Tuscarora.

Nevada's Senate Finance Committee has been favorably disposed to the idea.

"If everything goes as we think it will, we will break ground sometime late this summer," Barkdull says.

While the transloading facility was initially envisioned as smaller in scope, she says the support continued to grow and ideas blossomed suggesting that Elko could become only the third customs-served Port of Entry in Nevada.

"If we can develop a secured facility here, we can establish a free trade zone so product moving east can come directly here from the Ports of Oakland or Portland," she says."We are definitely going to look at this development as being a secured port, one that meets all the Department of Homeland Security guidelines."

For Barkdull's relatively new organization she previously served as the top executive for the Elko Chamber of Commerce until last year this activity is coming at exactly the right time.

"When you look at the increased interest nationwide to develop transloading facilities, Elko County has the three main criteria necessary.

Our county is uncongested.We have the area for future growth.And,most importantly, we want it here," she says.

Discussion about a free-trade port surfaced last year when county officials thought it would be a good idea if the county's regional airport could be designated a duty-free port.

When the talk turned to a transloading facility, Barkdull said it became clear that if both facilities were cleared for official port status, the potential was there to warrant having a full-time customs agent.

"Thank God, the lieutenant governor recognized this," says Barkdull."She's been our champion.And so has Barrick Goldstrike.

They've kept the fires burning under this project down in Carson City."

Hunt is chair of the Nevada Commission on Economic Development and has said the $1 million grant makes a lot of sense, especially at this time.

There is money available, she has said, and the state is not having to make budget cuts.

"If ever the state was going to make an investment, this is too good to let it pass," she has said.

Barkdull says Union Pacific will play a significant role in the development of the 1,000- acre transloading site.

Construction will actually be started by the railroad by bringing in material and developing the infrastructure necessary.

One cost estimate to provide additional rail, switches and communication material has been pegged at $2 million.

The initial phase of development asphalt, lighting, design and roadways into and out of the site has been estimated to cost an additional $1.3 million.

"The county will provide the seed money to purchase and help develop the site," Barkdull says,"but it does not want to operate it.

It will be seeking to sell off parcels to industries that see the potential that we do.And we will also be seeking a professional organization to run the transloading facility."

Barkdull explains that in most instances, a transload facility operator, third-party logistics company or a transportation broker will facilitate transloading for both the shipper and the consignee.

These companies, she says, coordinate truck and rail connections.

Frequently, they will also offer both warehousing and inventory management services.

Goods that might be moved and transloaded out of the proposed facility include heavy steel, aggregate, chemicals, plastic pellets and cement.

For Union Pacific, its interest is velocity."They want to pull in, drop off cars and pull out," says Barkdull.