Intermodal Rail Overview

As the result of an extensive strategic planning initiative, the Ports of Indiana (POI) has identified several new opportunities to leverage its capabilities and experience to make a greater contribution to Indiana's economic well-being. With statutory changes made in the 2003 legislative session, the Ports of Indiana can now pursue the development of intermodal rail ports in Indiana. The Opportunity - "The Crossroads of America" is more than just a creative nickname for Indiana - it is a reality. More than 82 million people live within 500 miles of Indianapolis, and we already serve as a major truck and rail corridor. Indiana has more interstate highways (14) than any other state, and its railroad system ranks ninth in the nation for total mileage (4,178 miles). These advantages, combined with the recent decision to phase out our inventory tax, puts Indiana in position to compete for logistics investment by expanding our intermodal rail capacity.

Intermodal Rail - Intermodal rail is the movement of freight, usually in a container, by railroad and at least one other mode of transportation - i.e. rail to truck. Companies save time and money by using the most efficient mode of transportation for each portion of a trip and transferring from one mode to another without re-handling cargo. Intermodal rail ports are the stations that allow carriers to transfer cargo between different transportation modes, just as Indiana's waterway ports connect rail, road and water.

Although inland rail ports are being built across the country, there is still great demand for these facilities as freight traffic increases. Chicago is the world's biggest rail hub. According to the Chicago Area Transportation Study, the Chicago area will need more than 7,000 additional acres for intermodal rail ports by 2020. But Chicago has less than half that much land available.

Reasons for the rapid growth in intermodal freight traffic include increases in international trade, e-commerce and rapid-order fulfillment as well as the public policy issues of truck transportation (congestion, safety and air quality). Intermodal rail ports can answer these demands and translate them into economic opportunity for Indiana.

Why the Ports of Indiana? - While maritime ports are still key elements for Indiana's economy, particularly the farm and heavy industry sectors, intermodal rail is how high-value freight is moving, both now and in the future. The POI can marshal the financial resources, assemble the land and facilitate the partnerships necessary to make intermodal rail ports a reality for Indiana. The POI has developed and managed three maritime ports with excellent records of attracting private investment and lowering transportation costs for Hoosier firms and farmers Acting as a steward of public facilities, working with private tenants, focusing on logistical efficiency, promoting economic development - these are all activities that the POI performs today.

There is also a strong likelihood that an intermodal rail port could be financed without using any state tax dollars by pledging future user fees in combination with federal resources and private investment. If Indiana takes advantage of intermodal opportunities, it stands to realize significant economic gains - and the Ports of Indiana is uniquely prepared to act as the catalyst.