Creating A Regional Inland Port in Gallup and McKinley County? Why it Makes Sense

By Patty Lundstrom, CEcD, Executive Director, Greater Gallup EDC

In January Greater Gallup Economic Development Corporation (GGEDC) hosted its annual economic roundtable in Santa Fe titled “The Gallup/McKinley County Regional TradePort: New Prospects for the Western New Mexico Logistics Hub.” The Roundtable focused on New Mexico’s trade presence and the planning and development of a multi-faceted Inland Port infrastructure associated with the Gallup Energy Logistics Park and the Gallup Municipal Airport. The Roundtable also discussed the hydrogen energy industrial cluster planned around the recently decommissioned Escalante Generating Station in Prewitt. 

The Roundtable convened local and state officials, TradePort consultants, and partners from private companies. The attendees sought a better understanding of what creating an inland port would entail, as well as anticipated challenges and benefits.  At the Roundtable, we got clear on the definition of an “inland port”:  “A physical site located away from traditional coastal borders with the vision to facilitate and process international trade through strategic investment in multi-modal transportation assets and by promoting value-added services as goods move through the supply chain.” (Center for Transportation Research, UT-Austin).

The GGEDC and its partners have been working toward this objective for a decade. Due in part to COVID-related global supply chain disruptions and international trade tensions, the seaports - notably the Ports of LA and Long Beach - have worked to ease supply chain congestion through supporting inland ports in the country’s “hinterlands. With our regional transportation, logistics and locational assets, the Greater Gallup region is well positioned to rise up as an important logistics hub on the I-40/BNSF Railway corridor.   

Many interconnecting “pieces of the puzzle” are needed to fulfill our “value proposition” for serving as an inland port. For example, infrastructure and other improvements at Gallup Energy Logistics Park have included: 

• Federal “Opportunity Zone” designation for the area to incentivize investment; 
• “BNSF-certified site” designation of the Park eligible for preferred company site locations through BNSF’s economic development program; 
• Major construction of Carbon Coal Road as a heavy-haul, multipurpose connector highway between U.S. 491 and the Park; 
• Master planned industrial-quality infrastructure extension along the Carbon Coal Road corridor; and 
• Attracting manufacturing and other industrial interests to the Park.

Other “pieces of the puzzle” have included:

• Active planning and funding to develop a McKinley County business park in the corridor; and 
• Resumption of passenger air service at the Gallup Municipal Airport.

Currently, GGEDC is providing technical support to McKinley County and the City of Gallup in facilitating  several State-funded design studies including planning and development of: 

• A Hydrogen/EV/Multi-fuel station hub for freight trucking along I-40; 
• A Trucking Super Center to provide 21st century facilities and services for the trucking industry and general cross-country traffic; 
• Foreign Trade Zone (FTZ) and U.S. Customs User Fee Airport certification in conjunction with major facility improvements at Gallup Municipal Airport; 
• An Autonomous Vehicles (AV) Test Track serving AV freight tech R&D companies; and 
• Inland port facilities in partnership with western seaports and other logistics hubs. 

These are the bricks-and-mortar pieces of the overall economic development vision, which focuses on leveraging our transportation assets to play a bigger role in the nation’s supply chain, to establish economic-base industry and to create new, good-paying jobs for the regional community – all while supporting the nation’s sustainability and environmental goals. 

At the Roundtable, we learned from trade expert Patrick Schaefer that New Mexico needs to forge a stronger presence in national and global trade, and that we can build on ancient trade routes and connections for a more robust economic future.

Asked at the Roundtable about the “chicken-or-the-egg” issue of investing in infrastructure before the development occurs, Jim Blair of Navigator Consultants advised that both processes need to go hand-in-hand: industrial recruitment efforts need to continue, but companies won’t come here without assurance the critical infrastructure they require is in place.  Jim emphasized other essential pieces being sought by companies, such as:  excellent intermodal networks; access to different modes of transport; presence of Foreign Trade Zones; presence of logistics, transportation, and e-commerce companies; and  proximity to international trade partners and markets.  Jim further explained that “skilled workforce” used to be the top priority for companies seeking to relocate their operations; now, though, “state and local leadership” is the #1 priority, followed by ready-to-go sites, buildings, and utilities.

Our Greater Gallup area has good assets to offer:  land, transportation corridors, and logistics capacity.  But we need to invest in other critical infrastructure and “readiness” capacities that meet the demands of industry.  On Jim’s advice, that’s where GGEDC and its partners are focused.  

In her Roundtable keynote address, Governor Michelle Lujan Grisham extolled us to keep “pushing harder -- thinking boldly about our economic possibilities to make positive things happen.” She asserted that New Mexico is building “the strongest economy we’ve ever had” and becoming an “economic powerhouse” with compelling advantages over our neighboring states. Calling the Gallup/McKinley Regional TradePort vision “fantastic,” the Governor urged us to “Stay the course. … What you’re planning and working on today is going to result in thousands of jobs and exponential returns on your investments.”

Patty Lundstrom, CEcD, Executive Director of Greater Gallup EDC