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Spokane could have what it takes to be cargo center-Region has potential to be distribution hub, speaker says

Spokane’s inland location — 260 miles from the nearest coastal port — has been cited for decades as a reason why the region doesn’t have much of a future as a distribution center.

Tom Sowa
Staff writer

This week, a West Coast manager for FedEx said Spokane’s distance — plus affordable cost of living — may be more of a magnet than a turn-off for companies needing to locate distribution centers in the western United States.

Pat Little, western states director for FedEx, said Spokane has clear advantages that could help make it a regional hub for cargo and products being moved into or out of the United States.

Little, who grew up in the Palouse, works for FedEx in Denver. His remarks this week were sponsored by the International Trade Alliance.

"You don’t have to be a port city anymore" to become a key link in transporting products to and from other cities, Little told about 30 area leaders during a Tuesday lunch meeting.

Area business leaders for years have debated whether Spokane can attract big-box distribution operations to available commercial land, especially on the West Plains near the Spokane airport.

Little pointed to several recent examples where inland cities have become distribution centers because they solved transportation problems for high-volume companies, and in the process gained lots of new jobs.

Sears, for instance, moved a gigantic domestic distribution center to Delano, a city 150 miles north of Los Angeles. Sears officials said they moved inland because Delano was less crowded and less expensive than ports on the California coast.

Port of Seattle officials have sounded a similar warning that congestion there is increasing.

"Given that Spokane has inexpensive land and much less crowding, moving inland makes sense" for some companies, Little said.

Moreover, "the customer doesn’t care whether the products are handled out of Spokane or Denver. The customer just wants to get the product," said Little.

Companies handling a lot of freight could save money by flying cargo to Spokane, then shipping it by rail or truck along the West Coast, into Canada, or south toward the Southwest, he said.

Even with longer distances, companies can still save costs by using smaller, less-crowded distribution points, he added.

Other Spokane advantages include high quality of life, a skilled and loyal work force and an airport with plenty of land for development, he said. To attract companies here, business and civic leaders need to start talking about a collective strategy, said Little.

"There’s no instant success," he said. "This takes time. But if you can sell Spokane, they’ll come here."

Trade Alliance Executive Director Roberta Brooke said the Tuesday group asked Little to visit Spokane to start "a healthy dialogue" on the topic.

In addition to the advantages, area leaders need to address the negatives that come with distribution growth — increased traffic, highway congestion and noise, said Brooke.

The Trade Alliance’s chief mission is to encourage area companies to expand international trade.

Brooke added that the group will wait for a state-funded research project, organized by the Department of Community Trade and Economic Development, that will examine the cost advantages of Eastern Washington over Western Washington.

The study, to be completed sometime later this year, will ask questions a commercial site locator would ask, such as, "Is one side of the state better than the other for overall operation costs?"

If there are barriers to growth here, Brooke said, the study will identify them.

•Business writer Tom Sowa can be reached at (509) 459-5492 or at [email protected]

http://www.spokesmanreview.com/news-story.asp?date=070403&ID=s1376830&cat=section.business

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