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Perspectives

An Inland Port or an Intermodal Center?

Published: 08 September 2009
The growth of both inland ports and intermodal facilities has been critical to export trade in the United States.

The concept of an inland port has developed along with the growth in global commerce and trade in the world economy. As exports and imports have grown, the need to position inland ports some distance from the sea ports has also grown. While the U.S. Army Corps of Engineers defines inland ports as "ports that are located on rivers and do not handle daft ship traffic," the definition has expanded to include inland facilities, with no water connection at all.

The concept of inland ports has been part of the cycle in the continuing developments of containerization of freight shipments and of growth in rail "intermodal" transportation, whereby a container is handled by a railroad. Intermodal containers are 20' and 40' in size and travel by sea on large-container ships. Specialized rail containers can be as large as 53', but can also travel on rail cars. These 53' containers are not placed on sea vessels. Container also may be temperature controlled to facilitate perishable produce or frozen foods. The containers are hauled over the road, or to and from rail ramps, on chassis upon which the containers rest while being transported.

The geographic location of an inland port becomes a part of the maritime network that moves goods to/from sea ports. The inland port expands the scope and coverage area of a sea port, thereby enabling businesses to have a fast and efficient means to import or export goods.

Intermodal centers do not necessarily need to be in close proximity to a seaport. The convergence of tow or more rail lines is an asset. Intermodal terminals can develop on a singly rail line at a strategic point convenient to the accumulation of container traffic. In the case of Cordele, the most desirable elements are present.

Many exporters and importers alike have found that their businesses are made easier if they can assemble export shipments, or deploy imports through distribution channels, at points free from the congestion of most sea ports. This concept has been successfully deployed in California, New Jersey, Virginia, and even Montana.

Crisp County in southern Georgia could be viewed as an unlikely candidate for an inland port. Cordele, GA, the seat of Crisp County, is located 160 miles west from the Atlantic Ocean Port of Savannah. This location has recently recaptured the attention of manufacturers and export shippers within a 300-mile radius of this southern Georgia city.

It is hoped by state, county, and regional officials that this inland port can change the face of economic development in this region, as it has in others utilizing the inland port idea. The Cordele-Crisp County Industrial Development Council thinks of this new project more as the "Cordele Intermodal Center." While port-of-entry status and a Free Trade Zone are planned for the future, initially the main attractions for logistical supporters of the project include convenient rail links and excellent interstate highway access. Three rail lines—CSX, Norfolk Southern, and Georgia Midland Railroad (the line with direct connection to Savannah)—converge in Crisp County.

The industrial leaders in the Crisp County region envision a "vast number of warehousing operations associated with the inland port" to be located near the inland port. Eight-hundred-and-fifty acres of land have been acquired to the east of Cordele to make space for the inland port. An assembly point for warehoused goods ultimately destined for containerization to be shipped via truck or rail to the Port of Savannah is expected. These goods will then find export markets overseas.

Producers of bulk goods including cotton and chemicals like bauxite, along with compressed concrete have shown interest in the facility. One poultry producer is also considering the inland port facility to assemble containers of frozen chicken destined for the Caribbean, as well as Europe. While Cordele and Crisp County have long been famous as the "Watermelon Capitols," time will tell as to the potential of this commodity. With the areas' agriculture continuing to be strong in the local economy, exports of fresh produce and other crops may be anticipated.

Marvair, a manufacturer of specialty air conditioning units used to cool telecommunication equipment in schools has just opened an office in the United Kingdom and is expected to ship out of the Port of Savannah. Marvair, a fifty-year-old company, is a subsidiary of Kansas-based Airxcel, Inc. It is expected that the inland port will facilitate easier access to international business opportunities for this company of 150-180 employees.

Three warehouses are initially planned on the inland port site. Promoters of the project predict that the inland port facility will employ as many as 2,500 people engaged in logistics, warehousing and distribution, and transportation. Firms specializing in containerization of freight are expected to offer jobs, as well as drayage operators moving containers to/from the Port of Savannah by road or to/from the intermodal rail ramp to be established on the port grounds. These companies will not only add jobs, but fuel the local economy with parts and maintenance purchases, along with creating markets for equipment and other support items. The new jobs will put dollars into the local economy and hopefully stimulate new growth in the entire South Georgia area

Whether the new facility is called inland port, intermodal rail center, or simply logistics center, it is a welcomed addition to the South Georgia logistics scene.

Charles W. Clowdis, Jr.
Managing Director-North America
Global Commerce & Transport Advisory Services
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