Why Inland Ports Are Crucial to the National Supply Chain

Inland ports, which span inland waterways and rail hubs, play an important role in the movement of goods both nationally and globally.

As domestic producers seek new markets, and companies importing goods search for transportation routes that allow them to reach more customers, inland ports provide impactful solutions.

Three factors — (1) allowing goods to reach more buyers, (2) offering a more efficient and cost-effective transportation option and (3) bypassing congestion — make these ports crucial economic assets on a local, national and global level.

Connecting Shippers and Communities

Inland ports connect shippers and producers to the global community. They enable them to reach a broader range of buyers for products, improving local economies. By expanding into international markets and gaining more customers worldwide, shippers can maximize their ROI.

For example, the Minot Intermodal Facility, located in the Logistics Park of North Dakota, presents a strong case study of how the addition of an inland port to a local supply chain impacts the movement of goods and creates new avenues of income for shippers and producers.

As the only intermodal port site in North Dakota, the facility, which just celebrated its fourth year, spans 136 acres and features more than 3 miles of rail serviced by BNSF Railway The Northwest Seaport Alliance has called it a potential blueprint for other communities.

From the Minot Intermodal Facility, exports like wheat, soybeans, sugar beet pulp pellets and dried distillers grains are shipped to the Ports of Seattle and Tacoma. From there, the products are shipped to more than more than 20 countries on four continents. As a result, North Dakota’s farmers and processors reach more customers and generate more revenue, demonstrating the positive impact that inland ports have on local economies.

The advantage of being connected to the global community goes both ways. Companies importing foreign-made products need access to strategic locations that can handle the distribution patterns required for these goods, making inland ports an ideal choice for operations.

Reducing Reliance on the Trucking Industry

Inland ports provide alternate routes that direct goods away from trucking routes, reducing emissions and presenting a more sustainable transportation option. Aside from greater efficiency, moving goods via rail rather than by truck is also cheaper.

For example, the Minot Intermodal Facility’s strategic location in North Dakota allows it to serve as a central hub for shippers that would otherwise have to transport goods by truck over exceedingly long distances. The Minot facility help reduce truck transit by more than 10 million miles.

In addition to reducing reliance on the trucking industry, diversifying shipping routes through an inland port strengthens local supply chains.

Bypassing Congestion at Coastal Ports

Leveraging inland ports makes it possible to avoid the heavy congestion that characterizes major coastal ports.

For importing companies, access to inland ports allows a quick offload of inbound goods from ships to move them to inland distribution centers for handling and redistribution domestically.

For exporting companies, shipping routes via inland ports and rail help streamline the shipping process. For example, containers that move from the Minot Intermodal Facility to Seattle or Tacoma via train have dock-side service, enabling cargo to transfer directly from trains onto ocean carriers, instead of piling up in storage outside of the docks.

As importing and exporting companies seek efficient and cost-effective ways to reach the most buyers, inland ports will remain a strong option, with expanded shipping capabilities and access to domestic and global markets. Inland ports will continue to play a crucial role in strengthening national supply chains.

(Photo credit: Getty Images file)