Increasing Volumes at Indiana's Ports a Positive Sign
Leaders at the Ports of Indiana believe most Hoosiers overlook the state's waterways and their significance; unless you live in one of Indiana's river cities or along the Great Lakes, you rarely see the seven million tons of cargo that floats through the state each year.
Through the first six months of 2010, Indiana's three ports—Burns Harbor, Mount Vernon and Jeffersonville—have shipped 3.8 million tons of cargo, which is an 11 percent increase compared to the same period last year. Looking at the ports individually paints an even more impressive picture; comparing the first six months of 2010 to 2009, tonnage at Burns Harbor is up more than 60 percent and Jeffersonville is up 32 percent. While Mount Vernon is holding steady, the port saw its highest volume of shipments in the last 15 years during 2009, meaning 2010 is on pace to be one of the top two years in tonnage shipments since 1995."A real advantage of our ports is that we move so many different cargoes, we're not dependent on one or two things," says Ports of Indiana Director of Corporate Affairs Jody Peacock. "Obviously, with the economy down, we've seen a drop across the board in steel shipments that go to the manufacturing sector, but we've been able to balance that out with increases in coal, grain, agricultural products, fertilizer and limestone shipments at certain ports. It's a real tribute to the diversity of cargoes moving through our facilities." Listen
Peacock says Indiana's ports are also an excellent barometer for the state's economy. Burns Harbor, located in Portage on the south shore of Lake Michigan, handles a large amount of steel products for the manufacturing sector and experienced a decrease in steel tonnage in recent years. However, Peacock says the port's 60 percent upswing in cargo shipments so far this year is "a great sign for the economy."
"We see Burns Harbor this year as a project cargo heaven. We're going to see some of the biggest cargo shipments this port's ever had," says Peacock. "We'll see a real focus on wind equipment; a lot of wind turbines will be moving through the port, as did in 2009. We'll also see a lot of tanks related to major business expansions on the Lake Michigan coastline. So, it's more than just a steady stream of steel shipments at this port; we're going to see some pretty massive cargos that include equipment used in heavy industry throughout the Lake Michigan shoreline." Listen
Celebrating its 40th international shipping season this year, Peacock says Burns Harbor plays a "tremendous role" in the state's economy, shipping more than 30 million tons of cargo annually. While it's the state's first and oldest port, Peacock says "[40 years] is pretty young when it comes to ports," and that it's one of the most modern ports on the Great Lakes. Listen
"Burns Harbor is really a crown jewel for Indiana," says Peacock. "There were some leaders back in the day that had a tremendous vision to create a port on the Great Lakes for Indiana. The Great Lakes' St. Lawrence Seaway was just opening, other ports were just getting started in other states and Canada, and the leadership in that region and the state decided Indiana needed to have a player in the maritime shipping industry on the Great Lakes. Having a port right there is crucial to our industry." Listen
While Burns Harbor paints a positive picture for 2010, Jeffersonville, located along the Ohio River in southeast Indiana, is also experiencing a significant 32 percent increase in cargo volume. While the port moves a variety of cargoes, its top commodities include grain, fertilizer, salt and steel. Port Director of the Port of Indiana-Jeffersonville Matt Smolek says port tenants credit the increase to their suppliers restocking and the "filling of the supply chains" throughout the region.
"I was very pleasantly surprised that the increases happened at this scale and happened this quickly for us; it seems to be a lot slower in other parts of the country," says Smolek. "This gets us back to nearly pre-recession numbers, which are pretty good in my opinion. Hopefully, it's an indicator that the southeast corner of Indiana—and the entire region—is starting to see a rebound in its economy." Listen
Additionally, Mount Vernon, along the Ohio River in southwest Indiana, is currently within a half percent of matching 2009 cargo volumes, which were the highest tonnage shipments the port had seen in 15 years.
"We like to take credit when cargo is up, but really, what makes a difference is what our port companies are doing and what the economy is doing," says Peacock. "As things get rolling in the economy again and the manufacturing sector picks up, we're going to see more shipments going through the ports. That's a good sign of the way things are going in the economic world right now."
While port leaders describe Indiana's waterways as an often "unseen conduit" of commerce, they say the ports play a critical role in the Hoosier economy. Reflecting on positive numbers about halfway through 2010, they believe Indiana is sailing toward an economic recovery.