New Articles

7 STATES WITH COMPREHENSIVE FACILITIES FOR THE MULTIMODAL TRANSPORTATION OF GOODS

transportation

7 STATES WITH COMPREHENSIVE FACILITIES FOR THE MULTIMODAL TRANSPORTATION OF GOODS

Thankfully, with COVID-19 vaccination programs in full swing, it appears that we are emerging out of the worst of the pandemic which has blighted the lives of so many people and caused so much devastation to businesses across all industries. 

Major parts of the U.S. economy, quite literally, were brought to a standstill with enforced closures and restrictions on the movement of people.

However, despite the disruption caused by the coronavirus pandemic, goods were still shifted in enormous volume during the course of 2020, the value of such activity in the U.S. and Canada estimated to have surpassed $6.8 billion. 

This figure should steadily rise given how increasingly dependent intermodal transport activity is on the consumer economy’s demand. It is also supported by well-developed hubs across all states that help to facilitate the movement of goods as seamlessly as possible. 

Here, we take a look at just some of the U.S. states with the most favorable logistics infrastructure. 

Illinois

The midwestern state is extremely well served by an array of transport hubs, the most significant being situated in and around its primary city of Chicago. 

Staggeringly, around a quarter of all rail freight calls into the city either as a final destination or stop on a journey to another terminus. Meanwhile, O’Hare International Airport processes around 2 million metric tons of cargo at a value of approximately $200 billion every year.

The state is also indebted to what is North America’s largest inland port in the form of CenterPoint Intermodal Center. Situated in the Joilet and Elwood area, around 40 miles southwest of Chicago, it is a 6,400-acre master-planned intermodal development that sees 3 million TEUs pass through it every year. It is currently home to more than 30 tenant companies that, between them, occupy more than 14 million square feet of space.

CenterPoint Intermodal Center is also built with heavyweight roads able to withstand massive pressure and contains several other useful features such as water and utility systems, public bus service connections, no restrictions on trailer parking ratios and 24/7 on-site fire and police protection.  

The site contains a massive 785-acre Union Pacific Railroad complex just south of Joliet, while another enormous rail complex measuring 770 acres that is operated by BNSF lies farther to the southwest.

When all of this is taken into consideration, CenterPoint can rightly be referred to as Illinois’ intermodal epicenter.  

The state is also making waves in the port scene, with officials recently announcing a $110 million fund to modernize public ports across the territory. Illinois is home to a network of waterways that includes 19 public port districts and more than 400 private terminals along the Illinois, Kaskaskia, Ohio and Mississippi rivers.

Texas

The Lone Star State is also no stranger to port-based trade. 

Texas has no fewer than 11 deep-draft ports, eight shallow-draft ports and two recreational ports that combine to make a critical contribution to the economic growth of the state, and represent key components of the region’s transportation system. 

The southern state’s ports are backed up by some of the country’s largest interstate highways and an enormous network of railroads. 

According to figures released by the Association of American Railroads, Texas received 208.1 million tons of rail freight in 2019, the most of any state. To put that in context, Illinois, the second-ranked state, received 107.4 million terminated rail tons. Texas also, unsurprisingly, has by far the largest network of rail infrastructure in terms of outright length, measuring at 10,460 miles compared to second-placed Illinois, which has 6,883 miles of track.   

Over in Dallas, a fairly recent addition to the city’s intermodal transport infrastructure (opening in 2015) is the Wylie Intermodal Terminal. It is a $64 million development owned by Kansas City Southern Railway (KCS), and is set to capitalize on significant opportunities in cross-border activity with Mexico. 

Wylie itself is a city and northeastern suburb of Dallas, with the KCS terminal sprawling across 500 acres of land and servicing 12 gulf ports and one Pacific Ocean port, as well as more than 140 transload centers and 11 intermodal ramps. KCS also provides 181 interchange points with other railroads, including all U.S. and Mexico Class 1 railroads.

Michigan

In a typical year, one without the disruptions caused by the pandemic, U.S. freight railroads move around 1.7 billion tons across nearly 140,000 miles of privately-owned infrastructure that run through 49 states.

Michigan is home to 28 such railroads and ranks 14th in terms of total rail miles, with 3,465 miles of track at its disposal. In 2019, it received 31.4 million tons of rail-based cargo and sent 21.2 million tons on its way to other parts of the country or abroad. 

The Detroit region offers extensive logistics options for businesses, including world-leading warehousing and what is often cited as the nation’s best undergraduate and graduate supply chain and logistics university courses.

Furthermore, the region’s strategic location on the Canadian border grants prime access to the wider U.S. and Canadian markets, with more than 47 million people within just a five-hour drive.

Detroit also contains more than 2,000 miles of interstates and highways, four Class 1 railroads, seven cargo ports and 15 airports. In total, the region moves $44 billion of goods evert year. 

According to the Michigan Freight Plan devised in 2017, the state has “an extensive transportation infrastructure system that supports more than $862 billion in economic activity on an annual basis, from ports to rail and highways to runways.”

California 

Over on the West Coast, California boasts some of the most comprehensive logistics infrastructure in the country, especially when it comes to ports and railroads. 

Indeed, California is the third most popular destination for rail freight in the United States, receiving 94.9 million tons in 2019 – the state is also fifth in terms of total tail miles, with 4,971 miles of track spanning over two Class 1 railroads and 26 short-line railroads.  

Los Angeles is home to the West Coast’s busiest seafaring trade hub thanks to the adjoining ports of Los Angeles and Long Beach. In total, California has one private and 11 public deep seaports and numerous private port and terminal facilities. These handle more than 40% of the total containerized cargo entering the U.S., and almost a third of the nation’s exports. 

Such formidable infrastructure is even further bolstered by 5,800 commercial miles of high traffic volume interstate and state highways, and 12 airports with major cargo facilities. 

All of this combines to present California as one of America’s most extensive, complex and interconnected freight hubs, a system which, according to the Californian government, employs 5 million people. 

Washington 

In the Pacific Northwest, Washington boasts an extraordinary number of ports–some 75 that are found in 33 of the region’s 39 counties. These are supported by 465 miles of navigable waterways for barge traffic on the Columbia and Snake rivers.   

For companies needing logistics infrastructure for accessing the Pacific sea lanes, Washington represents the prudent choice, with many of the 75 ports a day’s sail closer to Asian markets than any others on the West Coast. 

Washington also has the second-largest concentration of distribution centers on the Left Coast, well supplied by 30 railroads (including the Union Pacific and BNSF) which, between them, account for 2,891 miles of track. This allows the state to rank seventh in the U.S. in terms of rail cargo received (65.8 million tons a year). 

Washington’s roads network is also well developed, with 7,000 miles of state highways and more than 39,000 miles of country roads that help reach the most remote parts of the region. In terms of air transportation, Seattle-Tacoma International Airport is the state’s largest international airport and the ninth busiest in the country.

Much of this infrastructure has been subject to improvements and expansions as part of the $70 billion Connecting Washington program, a bill voted for in 2015 that supports several major projects on the state’s roads, railways, ferry terminals and more.

Pennsylvania 

The Keystone State boasts of 61 railroads in operation, the most of any state in the country. These transport around 150 million tons of freight in and out of the region annually. 

The railroads feed a host of other important logistics infrastructure hubs, which include international airports at Erie, Harrisburg, the Lehigh Valley, Philadelphia, Pittsburgh and Wilkes-Barre/Scranton. Along with nine other scheduled-service, domestic passenger airports, they move 560,000 tons of material every year. 

Pennsylvania’s three major ports are also extremely successful, exploiting their strategic position between the northeast and Mid-Atlantic and providing deep water, inland and Great Lakes access for convenient international importing and exporting. Indeed, the state’s foreign trade zone program has levelled the playing field and boosts U.S. competitiveness by reducing operational costs for businesses. 

Joining all the logistical dots are more than 120,000 miles of state and local highways which, along with airports and railroads, are part of the Act 89 transportation plan–a commitment to improve numerous transit passages and hubs to the tune of more than $60 billion. 

Wyoming 

Our final stop is landlocked Wyoming, nestled in the Mountain West subregion of the western United States.

Despite being home to just six railroads spanning 1,877 miles, it tops the charts on originated rail tons by a long way. In 2019, 273.2 million tons of goods were sent from the state, more than double that of Illinois in second (125.9 tons). 

Wyoming’s location means it relies heavily on road transportation to move goods from points A to B and onwards to other parts of the country. Here, it is well catered for, with Wyoming motorists collectively traveling 10.2 billion miles annually and moving a large proportion of the $66 billion of commodities shipped to and from the state each year. 

The design, construction and maintenance of transportation infrastructure supports around 13,000 full-time jobs across all sectors of the economy, including tourism, retail, agriculture and manufacturing. 

Wyoming’s airports also play an important supporting role. There are nine in total, the most significant being Jackson Hole Airport, located in the spectacular Grand Teton National Park. 

port cities

20 INLAND PORT CITIES THAT ARE MAKING A DIFFERENCE IN THE SUPPLY CHAIN

From a logistics perspective, one of the biggest lessons learned (so far) in the COVID-19 pandemic is that long supply chains stretching across the globe can spell trouble. Shutdowns in one manufacturing center in Asia—or the United States, for that matter—can imperil companies down the chain. 

“The golden rule of the supply chain in a post-COVID-19 world is to avoid sourcing everything from one location or one company and to maintain alternative sources of supply,” said Brian Leonard and Mark Volkman, JLL’s managing director and executive vice president, respectively, in a July 2020 article in Heartland Real Estate Business magazine.

Morris Cohen, a professor of Manufacturing and Logistics at the Wharton School at the University of Pennsylvania, goes even further.

“The question of global sourcing will continue to be critical,” Cohen said in a March 31, 2020 Bloomberg News story. “I believe that there will be a shift toward more regional and local solutions, with less dependence on single sources in other countries, as companies determine that the costs and risks of offshoring are even more significant than what they perceived them to be in the past.”

Cities with inland ports are uniquely situated to localize manufacturing and make supply chains more agile and transparent. Here are 20 we looked at that can do supply chain wonders.  

St. Louis, MO

From a supply chain perspective, St. Louis is fairly close to ideal. The region, which stretches along 15 miles of the Mississippi River, includes four ports, six Class I railroad carriers, four interstate highways and two international cargo airports. It also offers more grain handling capacity than anywhere else on the Mississippi, which is why the region is known as the “Ag Coast of America,” according to Inbound Logistics. St. Louis is also very attractive to manufacturers, brought by in low tax rates and close proximity to a highly skilled workforce, much of which has been trained in Supply Chain Management at local colleges.

Cincinnati, OH

In their Heartland Real Estate Business magazine piece, Leonard and Volkman point to the fact that Cincinnati is “within a 10-hour truck drive of 54 percent of the U.S. population.” This is absolutely critical for companies trying to make their supply chain(s) as nimble as possible. Couple it with Cincinnati’s three intermodal terminals, quarter-million feet of industrial space, another 8 million square feet under construction and close proximity to Cincinnati/Northern Kentucky International Airport, and you have a desirable location from a supply chain perspective.

Pittsburgh, PA

Business leaders in Pittsburgh are taking the effects of the COVID-19 pandemic on the supply chain very serious. So much so that in July 2020, the Pittsburgh Post-Gazette reported that a coalition of companies, labor organizations and business associations called Pittsburgh Works Together—which formed as the pandemic lockdowns began—unveiled a new plan to shorten the region’s supply chain. Their proposals included that the region should “fully develop its energy sector, especially around natural gas; encourage trade school routes for high school graduates who don’t go to college; rebuild local infrastructure; and reduce Pennsylvania’s corporate tax burden,” according to the Post-Gazette

Kansas City, MO

Because four major interstate highways intersect in Kansas City, trucks leaving the region can reach virtually the entire continental U.S. within 48 hours. This is a major advantage for companies located there, and the city’s economic officials are doing what they can to make their supply chains more agile. “Technology is something we need to learn how to embrace and use to solve problems,” said Chris Gutierrez, president of KCSmartPort at its industry briefing in April 2020, according to the Kansas City Economic Development Corporation. “In Kansas City, we are proud to carry that innovative thinking into discussions around making our regional supply chain companies more successful in today’s global marketplace.”

Memphis, TN

One of just four cities in the U.S. that’s served by five Class I railroads, Memphis is uniquely suited for all supply chain needs. According to a September 2019 Supply Chain Dive post, the city is also served by Memphis International Airport (the largest air cargo airport in the Western Hemisphere), three major highways and a port that moved about 11 million short tons of goods in 2017. It’s no wonder that Udo Lange of FedEx Logistics told Supply Chain Dive that Memphis “is one of the great logistics hubs in the world.”

Chicago, IL

Chicago is a global supply chain powerhouse. “On the national scale, the region is a transportation node in a number of North American supply chains,” states the 2015 Chicago Metropolitan Agency for Planning (CMAP) report “Chicago Region Supply Chain Trends and Trading Partners.” “On a regional scale, transportation infrastructure supports the region’s manufacturing cluster, which benefits from strong connections to international markets.” All of which is made possible by Chicago’s connections to two major waterways, six Class I railroads, seven interstate highways and the nation’s fourth busiest cargo airport.

Houston, TX

As one of the top energy producers in the world, Houston is a part of many global supply chains. While steel imports at Port Houston are down considerably from this time last year, according to a June 2020 webinar on global supply chains hosted by the Greater Houston Partnership, the reason is due more to Section 232 tariffs and lower oil prices than the COVID-19 pandemic. Overall cargo remains steady, while aggregates and grains are up considerably, and the port itself is investing $2 billion in terminal and channel improvements, according to the Greater Houston Partnership. Houston is also served by three Class I railroads, three interstate highways and a major international airport.

Charlotte, NC

The Economic Development Partnership of North Carolina (EDPNC) says Charlotte “sits at the heart of the Southeast’s manufacturing and distribution sites.” The city connects to four interstate highways (two of which tie into the port). There are also two intermodal facilities in the city and Charlotte Douglas International Airport, the seventh busiest international airport in the world. According to a 2019 analysis of Charlotte’s logistics by the Charlotte Regional Business Alliance, the region sits within 12 hours of slightly more than half of the U.S. population. 

Stockton, CA

A transportation hub since the mid 19th century, Stockton is located in California’s Central Valley. Though the city is best known for its 35-foot-deep inland port, it also boasts extensive rail connections. According to a December 2019 Business View Magazine article, nine of the city’s 13 industrial parks have rail access. In addition, all of its industrial parks are freeway close, and are within five to 15 minutes of both the port and Stockton Metropolitan Airport, which can accommodate all wide body aircraft currently in service.

Cleveland, OH

Port of Cleveland officials say their public and private harbors handle about 13 million tons of cargo every year. Cleveland processes a lot of heavy machinery, containers, iron ore, limestone and steel, among other cargoes, which isn’t surprising given that it’s the first major port of call on the Great Lakes for ships traveling the St. Lawrence Seaway. The Cleveland Bulk Terminal can handle 5,200 tons of iron ore per hour and is connected to one of the two Class I railroads that serve the port. Given that the port is just an eight-hour drive from half the U.S. population, it’s no wonder Cleveland is big on a lot of supply chains.

Duluth, MN

The Duluth Seaway Port Authority considers the Port of Duluth-Superior to be the “bulk cargo capital” of the Great Lakes, which isn’t surprising since it handles 35 million short tons of bulk cargo every year. “Maritime’s inherent efficiencies are critical to the success of supply chain managers worldwide,” states the port authority. “Shared by two cities and two states, the Port of Duluth-Superior has been the backbone of this region’s economy for well over a century.” Couple this with the city’s immediate access to I-35 and four Class I railroads, and it’s clear why this inland port city is so valuable from a supply chain perspective. 

Detroit, MI

Detroit is the busiest northern border crossing into Canada, according to that city’s Chamber of Commerce. It’s also the second largest customs port of entry into the U.S. in terms of the value of goods. The city is served by four Class I railroads, three intermodal terminals and the Port of Detroit, which handles 17 million tons of cargo every year. Much of that is raw materials, according to port officials: high grade steel, coal, iron ore, cement, aggregate and other building materials. In fact, the Port of Detroit is the third largest port in the U.S. in terms of handling steel. 

Louisville, KY

Louisville actually has two inland ports, both of which are vital supply chain components. There is, of course, the Port of Louisville on the Ohio River, which handles a variety of bulk cargos, including coal, grain and potash, and is served by three major eastern railroads. But there’s also the massive UPS Worldport, an air hub built in the early 2000s that today moves a staggering quantity of packages—many of them within a day. Three hundred flights carrying 2 million packages move in and out of the Worldport, which is as large as 90 football fields, every day. Eventually, Worldport officials say the center will be able to process as many as half a million packages per hour.

Vicksburg, MS

The only rail crossing of the Mississippi River in the state of Mississippi is at the Port of Vicksburg. The port currently handles 14 million tons of freight each year, but Vicksburg officials are looking at expanding it in the near future. In July 2020, the Vicksburg Warren Economic Development Partnership released a report outlining the supply chain growth advantages of such an expansion. “The top six market opportunities identified in the report include scrap iron imports from Mexico, containerized soybean exports, wood-chip exports in containers, resin exports, steel (mini) mill attraction and the imports of spruce logs,” the Vicksburg Post reported.

Green Bay, WI

Logistics and supply chain management jobs have been centering in Green Bay for many years now. Today, the region has the 18th highest concentration of transportation logistics jobs in the nation, according to an August 2019 Go Press Times article. The Port of Green Bay ties into enough major interstates to allow trucks to make overnight deliveries to anywhere within a 400-mile radius, according to the University of Wisconsin, Green Bay. “The Port of Green Bay is the westernmost port of Lake Michigan,” port officials say. “The Port of Green Bay offers the shortest, most direct route for shipments between the Midwest and the world.”

Tulsa, OK

The Tulsa Port of Catoosa is one of the largest (and most inland) ports in the nation. It’s always ice-free and hosts more than 60 companies, according to the Oklahoma Chamber of Commerce. The port allows Oklahoma industries to take advantage of navigable waterways that connect Minneapolis, Chicago, Pittsburgh, Sioux City, Brownsville and the Florida coast. Tulsa is also served by two Class I railroads, three interstate highways and Tulsa International Airport, which is just 10 minutes from the port. Six air cargo carriers and the U.S. Postal Service all maintain operations at Tulsa International. 

Shreveport, LA

The Port of Caddo-Bossier, which is just four miles south of the Shreveport city limits, ties into two Class I railroads, two interstate highways and two U.S. highways. The port also provides access to the Red River, Mississippi River, Gulf Intercoastal Waterway and the Gulf of Mexico. The port authority considers it one of the fastest growing ports in the nation, and it currently handles liquid petroleum, aggregate, coiled steel, plate steel, fertilizer, over dimensional cargo, scrap steel, steel beams, coal, tire chips and frac sand. 

Philadelphia, PA

Because of its location in the heavily populated coastal Northeast, Philadelphia has nearly unmatched strategic value. In fact, because of the interstate highways and two Class I railroads that serve the Port of Philadelphia, shippers can move products to 70 percent of the nation’s population within 72 hours. In November 2016, when state officials announced a $300 Port Development Plan that would double container volume processing, Philadelphia Regional Port Authority Chairperson Jerry Sweeney said, “This new service validates what we have known for a long time. Philadelphia is a more efficient supply chain option for major beneficial cargo owners.”

Milwaukee, WI

Situated on Lake Michigan, 467-acre Port Milwaukee provides easy access to the St. Lawrence Seaway. According to Transportation & Logistics International, it’s also the only “Lake Michigan port beyond Chicago approved to serve the Mississippi River inland waterway system, which provides direct river barge access to the Illinois River that connects other U.S. ports on the Gulf of Mexico.” The port also connects to I-94/795, ties into two Class I railroads and processes around 2.5 million tons of cargo per year—much of grains, cement and limestone.

Toledo, OH

The supply chain advantages in Northwest Ohio almost defy belief. The region boasts a 130,000-strong workforce, according to Toledo’s Regional Growth Partnership. The city and its port are just a single day’s drive to 60 percent of the U.S. market. The three major interstates and four railways that service Toledo provide a huge advantage for shippers. And in terms of natural disasters, Toledo is a relatively low-risk area, and the whole region boasts an affordable cost of living.