Freight Movement Important to the Region

 Since mid-summer 2008 the Van Buren Chamber of Commerce has been involved in efforts to establish a regional organization to address the freight/transportation needs of businesses in our area.  The need to establish an organization to support freight is critically important due to the region’s large manufacturing base and the potential for further logistics development and growth in the river valley and the northwest Arkansas area.  Over the past year, several meetings have been held to discuss freight issues and how the region could seek funds for infrastructure needs.  Earlier this year a task force was formed with representation from both the public and private sectors in both Crawford and Sebastian counties.  During this same time, Rick Green, State Representative for District 66 was working diligently in the legislative session to seek funds to assist the region’s efforts to move this initiative forward.  

Representative Green was quite successful and with Act 904 of the 2009 Arkansas General Assembly.  This act provides $325,000 in funds for economic development assistance for a regional intermodal facility.  With a portion of these funds, the Bi-State Metropolitan Planning Organization has now hired Mat Pitsch as the Regional Intermodal/Freight Management Director.  Pitsch’s role will be to coordinate the regional efforts to evaluate needs, suggest governance structure for a regional authority and to seek additional public funding for infrastructure for proposed sites, once identified.   The Van Buren Chamber of Commerce expresses our appreciation for the work of Representative Green and for the support of his legislation by the region’s legislative delegation.   

What’s next?   The Regional Intermodal Task Force met last on May 27 with three primary questions:  Does the region need a freight management system?  If so, what organizational structure should be created to manage the system?  Who should be on the governing board of the organizational structure?  The discussion was led by Mat Pitsch.  

After discussing the data that had been collected from shippers in the region, the task force eagerly agreed that a freight management system is, and has been, needed for quite some time.  The organizational structure was then discussed.  The task force looked at three basic forms of organization allowed under state law.  The Regional Multi-modal Transportation Authority was found to be best suited for the needs of the region due to its flexibility in accepting local, state, and federal tax monies and grant funds.  It also allows greater regional representation.  

Lastly, the make-up of the authority was discussed.  Originally the proposed structure included nine members with one third from Fort Smith/Sebastian County, one third from Van Buren/Crawford County, and one third from the private sector (shippers from the Manufacturers Executive Association of Western Arkansas (MEA)).  More specifically, one from each county (elected officials), two from each of the two cities (one being elected, the other appointed or elected), and the three from MEA, being broken down from the manufacturing areas of Fort Smith, Van Buren and Chaffee Crossing.  However, as those details of the appointments were discussed, Crawford County Judge John Hall noted that Chaffee Crossing was legally in Fort Smith.  It was clarified that the private sector/ MEA positions would require approval from the governing entities thus giving Fort Smith/ Sebastian County approval authority of five of the nine proposed members.  Judge Hall made it clear that equal representation was one of his requirements.  After further discussion all agreed that another member should be added from Van Buren’s private sector.  

This cooperative effort recognizes the importance of the freight needs of existing businesses in the region and the importance of freight costs to potential businesses who are looking at our area to locate their next plant/operation.  The Chamber supports this effort and will continue to work with the task force as the formal agreements begin to take shape.  The ground work is being layed to create tramsformative working relationships that will create new economic growth for the area.