SPECIAL ADVERTISING SECTION

SOUTHEAST TRADE AND LOGISTICS

By Karen Robes-Meeks

The Southeastern United States has long experienced faster economic growth than the national average , and recent years have been no different . The Southeast has seen its population continuously rise — approximately 2.2 million people have moved to the region since 2020 , according to the US Census Bureau and Bloomberg — and various companies open manufacturing , warehousing and distribution centers , making it a major player in trade and logistics .

Consequently , more than two-thirds of overall US job growth since early 2020 has come from the Southeastern states , with Florida , Tennessee , North Carolina and Georgia making CNBC ’ s list of top 10 US states with the best economies in 2024 .

“ The Southeast is growing at a rapid pace , and North Carolina in particular has emerged as a leader in logistics ,” said Brian Clark , executive director of North Carolina State Ports Authority . “ Available land and a ready , logistics-minded workforce make North Carolina an easy choice for companies .”

The state ’ s two deepwater ports are located within 700 miles of more than 150 million consumers and 70 % of the US industrial base , Clark said .

“ There is increased demand for nearport sites that can support heavy industrial / heavy manufacturing companies and import distribution growth ,” Clark said .

“ There is land availability and industrial products less than five miles away from the Port of Wilmington to support this demand , as well as industrial parks and property sites throughout the region where import distribution warehousing is active and expansions are possible .”

SANY America , the US subsidiary of SANY Heavy Industry Co . — one of the world ’ s largest heavy equipment manufacturers — began operating at the Wilmington Business Park in January , just

2 miles from port gates .

“ The SANY America announcement is just one example of a company taking advantage of the proximity and the benefits of using the Port of Wilmington ,” Clark added .

Population gains in the Southeast are expected to be greater than any other region through 2040 . In particular , South Carolina ’ s population growth rate soared faster than any other state from 2019 to 2022 , according to a 2023 economic study commissioned by South Carolina Ports Authority .

The influx of new residents and business investment have led to heightened demand at SC Ports , with its 52-foot-deep harbor and two rail-served inland ports .

“ The Southeast market is booming , with a growing population driving imports and new manufacturing investments spurring exports ,” said Barbara Melvin , SC Ports president and CEO . “ SC Ports is well-positioned for this growth with an enhanced intermodal network and more than 10 million TEUs of capacity planned within Charleston Harbor .”

SC Ports handled 218,115 TEUs in June 2024 , the second-highest June in history , and 224,407 TEUs in July , the second-highest July in history . Inland Port Greer and Inland Port Dillon each had record July months and continue to post record rail moves . July was also Inland Port Greer ’ s all-time best month with 17,332 rail moves , a 17 % increase over the same period last year .

Meanwhile , to the north , NC Ports processed a record 17,000 containers by rail in fiscal year 2024 , wrapping up at 13 % above budget . This growth , which follows a banner year for intermodal rail volume in FY23 , stems from heightened use of the Queen City Express and expanded programs on the Wilmington

Midwest Express , Clark said . NC Ports expects to capitalize on those records for FY25 , with a projected 5 % to 10 % growth in intermodal volumes .

“ Our service reliability is key to our growth ,” Clark said , adding that “ improvements to inland infrastructure are essential for providing reliable , costcompetitive intermodal rail services that expand options beyond the local truck market .”

NC Ports is undergoing a new intermodal rail yard project that would provide four new working tracks totaling 5,000 linear feet . With construction expected to take 1.5 years , the facility will help to divert more than 250,000 truck-bound containers to rail over the next decade and expand intermodal rail capacity to more than 50,000 container moves by rail annually , Clark said .

A separate rail storage project will add an estimated 6,000 feet near the new North Gate port entrance . Currently in the design phase , the North Gate Relocation and Access Optimization project seeks to move the entrance away from neighborhood streets to the designated truck route , thereby curbing traffic congestion and bringing the port entrance closer to the Cape Fear Memorial Bridge and the national highway system . The $ 28 million project received an $ 11 million federal transportation grant in November 2023 .

SC Ports is also investing in rail infrastructure to enhance its intermodal network and rail competitiveness as it continues to diversify its cargo base and show year-over-year cargo growth . This sustained progress prompted SC Ports to expand Inland Port Greer to meet heightened demand through 2040 , with 9,000 feet of new rail and an expanded container yard capable of handling 50 % more cargo .

The future Navy Base Intermodal www . joc . com October 21 , 2024 | Journal of Commerce 45