First of four parts

Transportation and logistics are intricate components that businesses must consider when making changes or openings. Tucson and Pima County, due to its location, is prime for attracting businesses with logistical needs and for logistic companies.

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Tucson Regional Economic Opportunities Inc. (TREO) says there are 152 logistics service providers in the area and a workforce of 3,698 people.

Some of the recent successes have been the country’s second Target online fulfillment center and the opening of Arizona Canning Company’s plant owned by La Costeña foods in Mexico.

"There were a variety of different factors that went into our decision to choose Tucson," said Ana Williams, spokeswoman for Target. "The accessibility to transportation, the workforce in the area as well as the quality of life for the employees in the area all played a big part. Tucson allows us to be along major freeway routes and near rail and air, that allows us better service to our guests."

Developer Diamond Ventures’ Bill Kelley worked with Target in the selection of the site, 9047 S. Rita Road, on the southeast side.

"They really liked that Tucson had less congestion than California did, also their site is right off the freeway," Kelley said.

The center is scheduled to be open by spring next year. Online orders through Target.com are currently being fulfilled either by Target’s only other center in Woodbury, Minn., or through third-party vendors.

In mid 2007, Arizona Canning Company opened its production plant, 7040 S. Rita Road, bringing products from across the country, canning them and distributing the finished products through the United States.

When the company announced it had chosen Tucson, Santiago Castro, director of the Mexican parent company Conservas La Costeña, said, "The decision to locate in the greater Tucson region allows us to greatly improve our production and distribution efficiencies in order to serve the U.S. market and future customers. This facility not only serves our current needs but allows us room to grow. Its proximity to rail, highway and air transportation is an attractive feature."

Tucson’s transportation infrastructure that helped attract these and other companies is diverse and includes:

• Interstate 10 traveling east-to-west is one of only three interstates that touches both coasts and is the only one not affected by winter snow storms.

• Interstate 19 connects to Mexico.

• Union Pacific Railroad’s main line runs through Tucson.

• Tucson International Airport, classified as a medium hub airport, provides options for air cargo nationally and internationally as a designated U.S. Port of Entry.

• Port of Tucson has rail infrastructure providing a freight gateway to Tucson, the Southwest and Mexico.

"The convenience of having the ability to convert a shipment from truck to rail or rail to truck is very attractive to businesses," said Alan Levin, owner and developer of the Port of Tucson off South Kolb Road between Valencia Road and I-10.

The port handles everything from industrial product materials such as rebar, lumber, rock and steel to beer and auto materials.

"A lot of stuff goes from our place by truck to the Ford plant in Hermosillo, Mexico," he said. "We also do a lot of beer that comes up from Mexico. In fact, nearly 70 percent of the business we have right now is dealing with shipments to and from Mexico."

The Canamex Trade Corridor Project also provides a unique economic opportunity for Tucson and Pima County. The project is in place to maximize the free-trade opportunities involving Canada, Mexico and the United States by developing the corridor’s physical and technological infrastructure. The plan is to build a continuous four-lane divided highway from Mexico City to Edmonton, Canada. In Southern Arizona, that route follows I-19 up to Tucson where it connects with I-10.

These factors have TREO convinced Pima County is a perfect spot for transportation companies or companies with high logistic needs to locate themselves.

"There are a couple of assets in particular that converge together to create a perfect storm of opportunity here," said Laura Shaw, senior vice president of corporate and community affairs for TREO. "There are $15 billion in goods and services that flow through here on rail and highway alone. Being on the Union Pacific mainline is a huge advantage that even Phoenix doesn’t have."

TREO has a map on its website - www.treoaz.org/T-L-Employers-Southern-Arizona.aspx - showing 152 companies in the transportation and logistic industry.

"That doesn’t even cover all the companies," said Al Altuna, freight planner for Pima Association of Governments, and a senior project manager at TREO. "That may only be 85 to 90 percent of the companies as new ones pop up."

Altuna says the region is the best option for an inland port for companies looking to get out of the congestion of southern California, or that simply have no room for operations there.

"We are a viable alternative for logistics activities, coming from the west coast and for operations coming up from Mexico," he said. "We have available land to accommodate additional infrastructure, we have the workforce availability and we are working on programs with community colleges to better our workforce in the industry."

Altuna is part of the Southern Arizona Logistics Education Organization (SALEO) which is working with Pima Community College, Cochise Community College and Arizona Western College to help develop the curriculum for the colleges’ transportation and logistics programs.

The organization meets monthly and its primary goal is to network the service providers in the region, so they can share best practices and improve the mobility of freight into and out of our region.

Which ultimately makes the region that much more attractive.

Contact reporter Joe Pangburn at jpangburn@azbiz.com or (520) 295-4259.

Tucson’s transportation infrastructure

Highway

East-west cross-continental Interstate 10 connects Tucson with Phoenix and Los Angeles to the west and El Paso and Houston to the east. Branching off I-10 is I-19, connecting Tucson to Nogales, Sonora, Mexico, about an hour’s drive away. San Diego is also easily accessible via freeway on I-8, which connects with I-10 about 65 miles west of Tucson.

Rail

The Union Pacific Railroad’s main line is one of the heaviest-traveled rail lines in the U.S., primarily moving trains carrying containers to and from the ports of Los Angeles and Long Beach.

Union Pacific also owns 26 percent of Grupo Ferroviario Mexicana, parent company of Ferrocarril Mexicano, which operates the rail line from Guaymas, Sonora, into Arizona.

Tucson International Airport

Classified as a medium-hub airport, Tucson International Airport is only about 10 miles from central Tucson. It is in a key position to grow cargo due to its status as a designated U.S. Port of Entry offering around-the-clock customs and immigration services. It also has close proximity to both Insterstates 10 and 19.

Port of Tucson

The privately-owned Port of Tucson, 6964 E. Century Park Drive on the southeast side, has rail infrastructure that includes a two-mile siding complimented by an additional 3,000-foot private siding to provide a freight gateway to Tucson, the Southwest, and Mexico.

Partnering with the Union Pacific Railroad and the trucking industry, it is a multi-modal facility providing a variety of transportation options to move goods throughout the Southwest and to and from Mexico. Shipments can be handled using a variety of modes including ocean or domestic containers, flat cars, double-stack cars, boxcars, bulk equipment or private team track.

Ports

A strategic southwestern location allows Tucson to benefit from the deep-water ports located on the west coasts of the United States and Mexico. These facilities provide Tucson with access to global shipping destinations.

From Tucson, the Ports of Long Beach and Los Angeles are 493 miles away, San Diego is 400 miles, Guaymas is 324 miles and Mazatlán is 798 miles.