BY TOBY B. GOOLEY, CONTRIBUTING EDITOR

INTERMODAL
Transportation Report

FOR MOST PEOPLE, THE TERM “SEAPORT” EVOKES images of salt air, waves lapping at the hulls of ships, and busy docks piled high with containers. But in Southeastern states like North and South Carolina, Georgia, and Virginia, it could also bring to mind rolling hills, railroad tracks, and bustling intermodal yards. That’s because port authorities in those states have established “dry ports,” located hundreds of miles from the ocean, to handle some of the containers transiting their harbors.

Arrangements vary depending on the parties and loca-
tions involved. Usually, though, port authorities will
arrange rail transportation between their marine terminals
on the coast and the inland ports they own. Importers and
exporters typically pay their ocean carrier an all-inclusive
rate that includes inland transport.

The first of these seaport-owned facilities, established in the 1980s, were slow to gain traction. But the concept proved prescient, and today, seaport-owned inland ports, especially those in the Southeast, are thriving. Container volumes are steadily increasing, and shippers like BMW and Procter & Gamble are taking full advantage of their services. The model has been so successful, in fact, that several new inland ports have opened in the past five years, and at least one more is on the drawing board.

Why are inland intermodal ports in the U.S. Southeast gaining in popularity now? What benefits—and potential drawbacks—do they offer for importers and exporters? Here’s a quick overview.