What economic opportunities does it create?
Intermodal rail ports - stations that allow transporters to switch modes - attract business investment.
These companies are seeking reduced transportation costs and enhanced supply chains, but they also bring
good jobs and an expanded tax base to a region. For example, the Gap clothing company chose Columbus, Ohio,
as the site for its "click and brick" e-commerce fulfillment hub. This brought hundreds of high-paying
information technology jobs to the area in addition to more traditional transportation jobs, like railroad
engineers (who typically earn more than $21/hour). Additionally, intermodal rail transactions generate tax
revenue and user fees, supporting state and local budgets.
What is the outlook for the future of intermodal rail?
As our population grows and demand for consumer and durable goods increases, opportunities in the
transportation/logistics sector seem unlimited. The explosion of e-commerce is just one of a number
of factors causing freight traffic to grow exponentially. And intermodal rail is the key to meeting
this demand - intermodal hubs are today's inland ports. Intermodal rail is already experiencing
tremendous growth, and that growth is expected to continue. According to conservative projections,
Chicago - the nation's rail hub - has less than half of the land needed for intermodal rail ports
by 2020.
Why Indiana?
Indiana is the "Crossroads of America" - more than 82 million people live within 500 miles
of Indianapolis, and we already serve as a significant trucking and rail corridor. We have more
interstates than any other state. Our railroad system is ranked ninth in the nation for total
mileage (4,178 miles) and fourth for the total number of railroads (37). Nearly a third of our
truck freight - an unusually high percentage - does not originate or terminate in Indiana: we
are a national route. With future plans to extend Interstate 69, many north-south logistics
routes between Canada and Mexico will also include Indiana. With all this and a close proximity
to Chicago, Indiana is a convenient location for transferring loads from roadway to railway and
vice versa. Indiana is positioned to benefit greatly from intermodal rail investment. In addition
to the economic benefits, intermodal rail will help to accomplish several public policy goals,
such as reduced emissions and reduced traffic congestion. Still, planning and foresight are needed
to attract investment.
Why is the Ports of Indiana involved... don't they just manage maritime ports?
The Ports of Indiana is charged with developing a modern port system that connects Indiana to
shippers around the world and generates economic development for the state. The Ports of Indiana
has the authority to develop projects for "all modes of transportation" anywhere in the state. An
intermodal rail port could be developed in Indiana in the same model as the state's three maritime
ports. The Ports of Indiana current day-to-day activities include acting as a steward of public
facilities while working with private tenants and focusing on logistical efficiency while promoting
economic development. Port authorities often operate non-maritime developments. The Port Authority
of New York/New Jersey manages the region's large airports, bridges and tunnels. Port authorities
in Chicago, Memphis and other areas also manage intermodal facilities. If Indiana takes advantage
of its intermodal opportunities, the Ports of Indiana is uniquely prepared to act as a catalyst.
|