Thursday, April 23, 2009

A lasting impact on industrial facilities throughout the Western United States

Posted by: Carl Zmaila
Industrial Specialist
775 336 4623
Nicholas Casey and Alex Roth of the WSJ recently authored an article that may have a lasting impact on industrial facilities throughout the Western United States.

They argue the Port of Los Angeles will be seeing increased competition. Why? For a multitude of reasons, from increases in regulation to companies looking for ways not to put all their eggs in one basket. One reason for the latter rationale is the labor dispute last year that handcuffed the Port of Los Angeles.

Casey and Roth are not arguing that the neighboring ports of Los Angeles and Long Beach will lose their dominance as the entry points to the United States for Asia, but other ports along the West Coast, for example British Columbia and Oregon, will see an increase in business.

This may benefit the Northern Nevada industrial market along with other industrial markets competing with the Inland Empire. By businesses choosing to diversify their ports of entry, inland distribution locations located along rail lines may well see an increase in value through the natural increase in demand.

Hopefully, more news like this will help push along infrastructure spending, for example the rail line improvements to accommodate stack trains being proposed over the Sierra Nevada.

To read the article by Mr. Casey and Mr. Roth please click here.

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