"The Permian Basin has and continues to make a significant contribution to this state (Texas). We are committed to working with state, regional, and local officials to finding the funding streams necessary to ensure that those of us in these energy producing areas can meet our needs, both for today and the future"
- MOTRAN Chairman J.D. Faircloth
The Permian Basin is unique in the maturity of it's multi-modal transportation and logistics infrastructure. The vastness of the region, combined with the materials moving requirements of key economic clusters and its proximity along east-west and north-south international trade corridors, has required the development of efficient rail and roadways. This development has been effectively supplemented by improvements in air infrastructure, anchored by Midland International Air and Space Port.
The region's roadways include Interstates 10 and 20 bisecting the region East to West and providing direct connection to El Paso, San Antonio, and Dallas/Fort Worth. The region also boasts a major north-south connection to Lubbock and Amarillo in HWY 87/IH 27, which connects to IH-40 and a strong network of State Highways, County and Local Roadways that are significant economic assets for the region. The region is also central to the La Entrada al Pacifico Trade Corridor and the Ports to Plains corridor connecting Mexico and Canada.
The Permian Basin rail system is comprised of east-west Union Pacific Railroad Company and Texas Pacifico Transportation Limited railways as well as north-south Burlington Northern Santa Fe Corporation railways. This dynamic allows for the efficient import and distribution of materials and goods from the region providing an important economic advantage for companies with a footprint in the region. Recent years have seen sustained private and public investment in improving capacity and access to the critical rail arteries.
The airport infrastructure for the Permian Basin region is anchored by the Midland International Air and Space Port, a 1600 acre municipally owned airport located approximately midway between Midland and Odessa that serves more than 900,000 passengers annually. One of eight FAA licensed commercial spaceports, Midland International is the first primary commercial service airport certified by the FAA as a spaceport. The region is further supported by a strong network of regional/municipal airports.
The region's economic developers have a history of sustained investment in developing transportation infrastructure and aggressive business development that capitalizes on this asset. Recent years have seen tremendous gains in industrial capacity by communities throughout the region via investments such as business parks, rail spurs, intermodal parks, etc. Continued development of a transportation and logistics cluster will require continued focus on maintenance and expansion of infrastructure quality and capacity if the region is to continue to expand economically.
The industry group that comprises the cluster includes.
The region's roadways include Interstates 10 and 20 bisecting the region East to West and providing direct connection to El Paso, San Antonio, and Dallas/Fort Worth. The region also boasts a major north-south connection to Lubbock and Amarillo in HWY 87/IH 27, which connects to IH-40 and a strong network of State Highways, County and Local Roadways that are significant economic assets for the region. The region is also central to the La Entrada al Pacifico Trade Corridor and the Ports to Plains corridor connecting Mexico and Canada.
The Permian Basin rail system is comprised of east-west Union Pacific Railroad Company and Texas Pacifico Transportation Limited railways as well as north-south Burlington Northern Santa Fe Corporation railways. This dynamic allows for the efficient import and distribution of materials and goods from the region providing an important economic advantage for companies with a footprint in the region. Recent years have seen sustained private and public investment in improving capacity and access to the critical rail arteries.
The airport infrastructure for the Permian Basin region is anchored by the Midland International Air and Space Port, a 1600 acre municipally owned airport located approximately midway between Midland and Odessa that serves more than 900,000 passengers annually. One of eight FAA licensed commercial spaceports, Midland International is the first primary commercial service airport certified by the FAA as a spaceport. The region is further supported by a strong network of regional/municipal airports.
The region's economic developers have a history of sustained investment in developing transportation infrastructure and aggressive business development that capitalizes on this asset. Recent years have seen tremendous gains in industrial capacity by communities throughout the region via investments such as business parks, rail spurs, intermodal parks, etc. Continued development of a transportation and logistics cluster will require continued focus on maintenance and expansion of infrastructure quality and capacity if the region is to continue to expand economically.
The industry group that comprises the cluster includes.
Economic Impact
- 594 Establishments in the region
- 1.81 Jobs Multiplier - 83.5% of Jobs are held by males Industry Requirements: Industry / Amount / In-Region / Out of Region Petroleum Refineries / $310,617,214 / 63.1% / 36.9% Couriers and Express Delivery Services / $75,590,693 / 29.3% / 70.7% US Postal Service / $35,240,273 / 47.2% / 52.8% Freight Transportation Arrangement / $25,249,681 / 24.7% / 75.3% Crude Petroleum and Natural Gas Extraction / $23,846,082 / 51.4% / 48.6% |
Employment Outlook
In 2014, the region maintained an estimated 8,521 jobs in the Transportation and Logistics Cluster, 30% more than the national average for a typical region the size of Permian Basin. Employment is projected to grow 23.2% from 2014 to 2019 versus a projected 6.0% growth rate nationwide during the same timeframe. Average earnings for jobs in the cluster are approximately $75,945, 21.7% higher than the national average.
Within the cluster, the occupations with the highest concentration of jobs include:
- 4,155 Heavy & Tractor Trailer Truck Drivers
- 769 Laborers and Freight, Stock, and Material Movers
- 295 Light Truck or Delivery Service Drivers
- 225 Bus & Truck Mechanics & Diesel Engine Specialists
- 210 Office Clerks, General
Within the cluster, the occupations with the highest concentration of jobs include:
- 4,155 Heavy & Tractor Trailer Truck Drivers
- 769 Laborers and Freight, Stock, and Material Movers
- 295 Light Truck or Delivery Service Drivers
- 225 Bus & Truck Mechanics & Diesel Engine Specialists
- 210 Office Clerks, General
Economic Development Catalysts
The Ports-to-Plains Alliance has brought
significant attention and federal resources to bear on improving the highway
system to support energy production and the export of oil and gas from the Permian
Basin region. The Ports-to-Plains Alliance is a non-profit, nonpartisan, community-driven
advocacy group led by mayors, councilpersons, economic development officials, and
business leaders from a nine-state, 2300-plus mile economic development
corridor between Texas, and Alberta, Canada.
The MOTRAN Alliance is an advocacy agency for commitment of resources to improvement of transportation infrastructure in the Permian Basin and for development of an international trade route connecting the Permian Basin to Chihuahua City, Mexico. Many Texas cities will benefit from the proposed corridor including those in West and Central Texas. Cities along I-20 and I-10 stand to gain the most via development - these include Dallas, Fort Worth, Abilene, Midland and Odessa. Additional cities will benefit if the corridor is extended north along I-27, including Lubbock, Plainview, Amarillo, and surrounding communities.
BNSF Railway celebrated the opening of a new $45-million logistic center in Sweetwater, Texas, with a ribbon-cutting ceremony. The logistic center, supported by rail, truck and transload services, will support customers across several industries, including agricultural commodities, sand, pipe and aggregate. While Sweetwater rests outside of the PBRPC region, the Center is intended to serve as a hub for economic activity in the region as the Cline Shale
The Midland Executive Airpark is located on the Northern side of the City of Midland and is only minutes from downtown Midland. Midland Airpark is designed to allow easy access to all areas of the Midland Community. Midland Airpark serves the general aviation public which includes business and corporate traffic and is under the operational control of the City of Midland and the Department of Airports.
The Midland International Air and Space Port is designated Foreign Trade Zone #165. "FTZs are treated, for the purposes of the tariff laws and customs entry procedures, as being outside the Customs Territory of the United States. Under FTZ procedures, foreign and domestic merchandise may be admitted into zones for operations such as; storage, exhibition, assembly, manufacture, and processing, without being subject to formal customs entry procedures (the payment of customs duties or the payment of federal excise taxes)."
In recent years, Midland International Air and Space Port have made significant investments to improve capacity, including:
- $3.4 million for Taxiway Extension in 2015
- $2.3 million Parking Lot Addition in 2014
- $2.8 million Executive Hangar Reconstruction from 2012-2014
- $4.0 million to Rehabilitate Taxiway Systems in 2013
- $3.9 million for Runway Reconstruction in 2012
The Union Pacific Railroad and the Agri-Empresa Transloading Facility have connected Midland to the major metropolitan areas of Central and Western United States. The Agri-Empresa Transloading Facility is the newly constructed off-loading point for businesses in the Midland area. Service is provided by the Union Pacific Railroad and the facility can manage a maximum of 210 cars. The facility is ideally located adjacent to Business I-20 and is less than 1 mile from the David Mims Business Park.
Union Pacific Railroad has made an estimated $110,659,506 in investments in the Midland-Odessa area from 2010-14 according to the MOTOR MPO Plan, Vision 2040. Investments include the 2013 addition of 6 additional side storage rail lines to the Odessa Rail Yard.
Union Pacific has plans to develop a Union Pacific Distribution Services (UPDS) Railport, a dedicated pipe and bulk transloading facility, in multiple phases during the coming years, just south of the Odessa Rail Yard. Phase one included a $14 million investment in the construction of two rails.
The 500-acre Montane Logistics Industrial Park is rail served and home to a staging yard, warehouses, and silos. The Industrial Park is a significant economic development asset that will assist in developing Pecos as a transportation and logistics hub.
US Silica Co. constructed a $12 million transloading and storage facility in south Odessa capable of storing 20k tons of fracking sand to accommodate oil and gas exploration in the region.
Wild Cat Minerals opened a proppant transloading and storage facility with a capacity of 34k tons of proppant and a unit train track capacity of 55.
Big Spring Economic Development Corporation approved $150,000 in reimbursement for rail upgrades and capital improvements to Transportation Handling Specialist in 2012, as well as $500 per month for two years, to improve the competitiveness and develop industrial property. The Big Spring Rail System, operated by Transport Handling Specialists, was also one of 12 rail line projects across the United States receiving funding ($299,423) from the Federal Railroad Administration Rail Line Relocation and Improvement grant program.
The City of Andrews Business Park has 50-acres developed, with utilities, and ready for improvements. The site has access to U.S. Highway 385 South, Mustang Drive (the bypass loop) and State Hwy 176. Land is offered free to qualified businesses and several build-to-suit programs are possible with lease and lease-purchase options. Composites One, LLC, a national distributor of fiberglass and advanced composite material is a current tenant, having constructed a $1.1 million 20,000 square foot distribution center.
The Odessa Business Park capitalizes on location, adjacent to Interstate 20 and within 10 minutes of the Midland International Air and Space Port, a Union Pacific Railroad Switch, and La Entrada al Pacifico.
The MOTRAN Alliance is an advocacy agency for commitment of resources to improvement of transportation infrastructure in the Permian Basin and for development of an international trade route connecting the Permian Basin to Chihuahua City, Mexico. Many Texas cities will benefit from the proposed corridor including those in West and Central Texas. Cities along I-20 and I-10 stand to gain the most via development - these include Dallas, Fort Worth, Abilene, Midland and Odessa. Additional cities will benefit if the corridor is extended north along I-27, including Lubbock, Plainview, Amarillo, and surrounding communities.
BNSF Railway celebrated the opening of a new $45-million logistic center in Sweetwater, Texas, with a ribbon-cutting ceremony. The logistic center, supported by rail, truck and transload services, will support customers across several industries, including agricultural commodities, sand, pipe and aggregate. While Sweetwater rests outside of the PBRPC region, the Center is intended to serve as a hub for economic activity in the region as the Cline Shale
The Midland Executive Airpark is located on the Northern side of the City of Midland and is only minutes from downtown Midland. Midland Airpark is designed to allow easy access to all areas of the Midland Community. Midland Airpark serves the general aviation public which includes business and corporate traffic and is under the operational control of the City of Midland and the Department of Airports.
The Midland International Air and Space Port is designated Foreign Trade Zone #165. "FTZs are treated, for the purposes of the tariff laws and customs entry procedures, as being outside the Customs Territory of the United States. Under FTZ procedures, foreign and domestic merchandise may be admitted into zones for operations such as; storage, exhibition, assembly, manufacture, and processing, without being subject to formal customs entry procedures (the payment of customs duties or the payment of federal excise taxes)."
In recent years, Midland International Air and Space Port have made significant investments to improve capacity, including:
- $3.4 million for Taxiway Extension in 2015
- $2.3 million Parking Lot Addition in 2014
- $2.8 million Executive Hangar Reconstruction from 2012-2014
- $4.0 million to Rehabilitate Taxiway Systems in 2013
- $3.9 million for Runway Reconstruction in 2012
The Union Pacific Railroad and the Agri-Empresa Transloading Facility have connected Midland to the major metropolitan areas of Central and Western United States. The Agri-Empresa Transloading Facility is the newly constructed off-loading point for businesses in the Midland area. Service is provided by the Union Pacific Railroad and the facility can manage a maximum of 210 cars. The facility is ideally located adjacent to Business I-20 and is less than 1 mile from the David Mims Business Park.
Union Pacific Railroad has made an estimated $110,659,506 in investments in the Midland-Odessa area from 2010-14 according to the MOTOR MPO Plan, Vision 2040. Investments include the 2013 addition of 6 additional side storage rail lines to the Odessa Rail Yard.
Union Pacific has plans to develop a Union Pacific Distribution Services (UPDS) Railport, a dedicated pipe and bulk transloading facility, in multiple phases during the coming years, just south of the Odessa Rail Yard. Phase one included a $14 million investment in the construction of two rails.
The 500-acre Montane Logistics Industrial Park is rail served and home to a staging yard, warehouses, and silos. The Industrial Park is a significant economic development asset that will assist in developing Pecos as a transportation and logistics hub.
US Silica Co. constructed a $12 million transloading and storage facility in south Odessa capable of storing 20k tons of fracking sand to accommodate oil and gas exploration in the region.
Wild Cat Minerals opened a proppant transloading and storage facility with a capacity of 34k tons of proppant and a unit train track capacity of 55.
Big Spring Economic Development Corporation approved $150,000 in reimbursement for rail upgrades and capital improvements to Transportation Handling Specialist in 2012, as well as $500 per month for two years, to improve the competitiveness and develop industrial property. The Big Spring Rail System, operated by Transport Handling Specialists, was also one of 12 rail line projects across the United States receiving funding ($299,423) from the Federal Railroad Administration Rail Line Relocation and Improvement grant program.
The City of Andrews Business Park has 50-acres developed, with utilities, and ready for improvements. The site has access to U.S. Highway 385 South, Mustang Drive (the bypass loop) and State Hwy 176. Land is offered free to qualified businesses and several build-to-suit programs are possible with lease and lease-purchase options. Composites One, LLC, a national distributor of fiberglass and advanced composite material is a current tenant, having constructed a $1.1 million 20,000 square foot distribution center.
The Odessa Business Park capitalizes on location, adjacent to Interstate 20 and within 10 minutes of the Midland International Air and Space Port, a Union Pacific Railroad Switch, and La Entrada al Pacifico.