SPECIAL ADVERTISING SECTION

INLAND EXPANSION SPOTLIGHT

By Chris Lewis

Securing truckload capacity on America ’ s coastlines has grown difficult in recent years , leading to distributors and shippers moving their containers and products closer to distribution center ( DC ) locations at a distance from seaside ports . With most truckload capacity located farther inland on major interstate intersections , beneficial cargo owners ( BCOs ) can transload to full truckloads and less-than-truckloads by conducting their distribution in these areas . Inland locations provide greater reach , leading to more potential customers regarding import and export volumes .

The COVID-19 pandemic and resulting e-commerce boom have also played a considerable role in inland port expansions , fueling the demand for warehouses and DCs at an ever-increasing rate . Construction of these facilities has been an economic bellwether for many inland regions of the US .

Ed Smith VP , Distribution & Fulfillment , Averitt

In 2023 , Inland Port Greer moved 175,873 containers in upstate South Carolina , a 26 % increase compared with 2022 ’ s aggregate . Inland Port Dillon moved 43,266 containers , a 55 % hike from 2022 ’ s figures .

These trends are being noticed throughout the country , as well . Minnesota ’ s Port of Duluth-Superior transports more iron ore than any other US port , and Virginia Inland Port recently invested $ 15 million to increase its onterminal track capacity by 40 %.

When reflecting on the United States ’ ongoing inland port expansions , Ed Smith , vice president of distribution and fulfillment at Averitt , believes there are myriad reasons for the growth . To learn more about each of these factors and their influences on the nation ’ s inland ports , the Journal of Commerce recently spoke to Smith , who shared the following insights .

Q : As a result of the COVID-19 pandemic , the demand for additional supply chain gateway choices rose to combat container terminals ’ congestion , leading to an inland migration . What major shifts occurred ? A : In my opinion , this rise in inland port expansion and development is due to ports ’ interest in increasing their imports and exports , while also reducing their terminal traffic . By moving their container volumes further inland , ports can achieve these goals , while competing for growth in import and export volumes . Moreover , they won ’ t have to be concerned about cargo landing at their terminals .

Averitt has seen — and will likely continue to see — expansions at inland ports such as Inland Port Greer ( Greer , SC ), along with an increase in new inland ports , such as Chatsworth , Ga .’ s Appalachian Regional Port . We are also watching Georgia Ports Authority ’ s planning for a new Gainesvillebased inland port , known as the Blue Ridge Connector , which will open in early 2026 .

Additionally , Alabama has announced its North Alabama Inland Port , which will be located in Decatur , Ala . PortMiami and Port Everglades are also looking at inland locations for potential ports in Florida .

Q : What impact has a move to more inland operations had on warehouses and distribution centers ? How are increased volumes being accommodated ? A : Warehouse and distribution centers are currently growing to ensure any needs are met , with regard to where cargo actually lands . At Averitt , we are asking customers to constantly look at their supply chains with a broader focus . Where are they presently sourcing their manufacturing goods ? Will the goods continue to be stored there ? Or will they be moved for numerous reasons over the next five to 10 years ?

Also , which ports best suit their current and growing needs ? Should they use one singular port based on their consumers ’ locations ? Or should they use several ports — with multiple , asset-based warehouses under one warehouse management system ( WMS ) — for better visibility and speed to market ?

This is where Averitt comes in with a “ five-vertical ” approach to solve all of our customers ’ needs : Less-than-truckload ,

38 Journal of Commerce | May 6 , 2024 www . joc . com