Inland Distribution
Special Report
The first of three TSMC chip plants in Arizona ( pictured ) is expected to begin production in 2025 . Shutterstock . com
“ We ’ ve had 30-plus semiconductor companies announce here since 2022 ,” Camacho said . In addition to TSMC , chip makers such as Intel , Onsemi , Microchip , NXP and Benchmark Electronics have facilities in and around Phoenix , he said .
RK Logistics , with headquarters in California ’ s Silicon Valley , focuses on shippers producing advanced technology . The company acquired a facility and other assets from
“ We see tremendous opportunities for growth in northwest Mexico ... That ’ s the next horizon .”
Southwest Supply Chain Solutions in Tempe , Ariz ., to serve semiconductor and battery manufacturers .
“ Semiconductor equipment is the new gold ,” Joe MacLean , CEO of RK Logistics , said . “ Companies are asking us to engineer specific solutions on the warehousing and transportation side to address the sheer enormity of the value density of these products .”
Ports of entry
Phoenix ’ s proximity to Southern California ports and the US-Mexico border continues to draw technology businesses and other companies to the region , Camacho said .
“ When you have very low [ industrial real estate ] vacancy rates in the Inland Empire , that real estate compression leads companies to look here ,” he said . Phoenix ’ s industrial vacancy rate rose to 11.9 % in the second quarter , according to real estate firm Avison Young .
Avison Young reported a 7.7 % second-quarter industrial vacancy rate in California ’ s Inland Empire region .
In Phoenix , “ with many construction projects nearing completion and new starts reducing , the market ’ s vacancy rates should stabilize soon and begin to trend lower ,” the company said .
Increased railroad activity and investment in Phoenix is aimed squarely at intermodal containers headed to the area from the ports of Long Beach and Los Angeles .
UP opened its new facility in February and will continue construction on the intermodal site throughout 2024 . Duncan and Son Lines in Buckeye , Ariz ., provides the location ’ s drayage .
BNSF is planning an intermodal transfer hub on 1,770 acres in Surprise , Ariz ., northwest of Phoenix , along with a logistics park with warehousing and distribution facilities and a separate logistics center . The railroad has not announced its completion date .
Phoenix is looking south as well as west , however , expecting greater volumes of freight from Mexico .
“ We see tremendous opportunities for growth in northwest Mexico , and we have an initiative under way to support manufacturers who want to locate in Mexico or Arizona ,” Camacho said . “ That ’ s the next horizon .”
email : bill . cassidy @ spglobal . com
38 Journal of Commerce | September 23 , 2024 www . joc . com