In 2004, the Ports of Indiana published the first-ever
Indiana Logistics Directory. The directory was created to promote Indiana's transportation, distribution, logistics
and related resources to local, national and international markets. The term "logistics" is very important to the
state of Indiana. This state truly lives up to its official motto: "The Crossroads of America." More than 150
million people live within 500 miles of Indiana, and the state already serves as a major truck and rail corridor.
With 11,300 miles of state highways and 1,171 miles of interstate highways, no state has more total
interstates passing through
it than Indiana. Its railroad system ranks ninth in the nation for total mileage and it ranks 14th nationally
for waterborne shipping. These advantages, combined with the recent decision to phase out inventory tax, put Indiana
in position to compete for logistics investment.
The U.S. transportation, distribution and logistics industry is a $1 trillion industry expected to grow 65% by the year
2020. Reasons for the rapid growth include increases in international trade, e-commerce and rapid-order fulfillment.
Because of its location and resources, Indiana is well-positioned to take advantage of this oncoming growth.
Why the Ports of Indiana?
As the state's port authority, the Ports of Indiana markets Indiana's business and logistics services everyday. New
legislation took effect in 2003 authorizing the Ports of Indiana to develop all types of transportation facilities
anywhere in the state. While maritime ports are still key elements for Indiana's economy, particularly the agriculture
and heavy industry sectors, 21st century logistics will be key to the state's future. The Ports of Indiana is now
working with many public and private organizations to develop massive intermodal logistics centers that could mean
billions of dollars to the Hoosier economy. The Ports of Indiana is committed to making 21st century logistics a
top priority for Indiana's public officials, private companies, educational institutions, economic development
agencies and communities all over the state.
Here are a few significant excerpts from recent logistics-related studies:
Transportation - Invest in America: Freight-Rail Bottom Line Report Source: The American Association of State Highway and Transportation Officials
"Today trucks and the highways system carry 78 percent of domestic tonnage, the freight-rail system carries 16 percent,
and barges and coastal shipping carry 6 percent. By 2020 the highway system must carry an additional 6,600 million tons
of freight (An increase of 62%) and the freight rail system must carry an additional 888 million tons (an increase of 44%).
However, the highway system is increasingly congested, and the social, economic, and environmental costs of adding new
highway capacity are prohibitively high in many areas."
Prospectus for the Central Indiana Transportation, Distribution and Logistics Cluster Source: The Central Indiana Corporate Partnership
"With approximately 90,000 employees in the Central Indiana TDL [Transportation, Distribution, and Logistics] industry,
the emerging cluster is competitive in employment size with other regions with logistics specializations. However,
Central Indiana does not have a singly dominant TDL employer, suggesting that the regional industry is composed of
numerous smaller companies rather than one specific "anchor" powerhouse. By not relying on any one particular company,
the Central Indiana region is growing a diverse and solid base from which to build."
Trade & Transportation: A Study of North American Port and Intermodal Systems Source: The National Chamber Foundation, an affiliate of the U.S. Chamber of Commerce
"The continued process of globalization is expected to increase the value of trade to as much as 1/3 of the GDP in the
next 20 years. (Therefore) the U.S. freight-movement and logistics systems need to be restructured to accommodate the growth."
"A key trend in the production of goods has been a shift from vertically structured production enterprises, where centralized
manufacturers both produce and distribute their product, to a horizontally integrated production process where firms
outsource many of their functions, including distribution. Therefore, the existing vertically structured modal freights
infrastructure must also become horizontally integrated into an effective intermodal freight system."
"Intermodal freight has been the fastest-growing segment of traffic for the U.S. railroad industry over the past decade. U.S.
rail intermodal has grown from 3.1 million units (trailers and containers) in 1980, to nearly 9 million units in 2001.
Intermodal now accounts for about 20% of the revenue for the major railroads."
it than Indiana. Its railroad system ranks ninth in the nation for total mileage and it ranks 14th nationally
for waterborne shipping. These advantages, combined with the recent decision to phase out inventory tax, put Indiana
in position to compete for logistics investment.