Inland Ports: A strategy for faster last-mile deliveries

In the aftermath of the COVID-19 crisis, as logisticians scrutinize and adjust supply chain operations in light of new customer requirements, inland ports will likely see their day arrive — for the time savings they offer as well as the transportation and warehousing efficiencies they generate. Amazon was recently granted approval to build one of its largest fulfillment facilities, rumored to be 3 million square feet and four stories tall, at the inland port in Little Rock, Ark. While the potential size of the facility is an eye-popper, its location is an interesting strategic move by Amazon. Inland ports have been around for quite a while, but their popularity has increased in recent years as utilizing rail and overland infrastructure boosts speed-to-market and eases port congestion. The Little Rock inland port integrates West Coast ports via the Union Pacific (UP) Railroad and the Burlington Northern Santa Fe (BNSF) Railway; it also offers access to five interstates and is in close proximity to the Bill and Hillary Clinton National Airport (LIT). Cargo providers operating at the airport include Delta Cargo, Southwest Airlines and UPS Air Cargo. In 2019, Amazon conducted a pilot test, placing its own branded containers on trains departing West Coast ports; if successful, it will result in another mode to keep goods within Amazon’s own logistics network from origin to final-mile delivery. Amazon’s Asian imports could potentially travel from West Coast ports via UP and BNSF to the Little Rock inland port, and from there via truck — through Amazon’s truck brokerage capabilities — or by air via Amazon partner UPS. Amazon is not alone in trialing its own intermodal transportation; Walmart is said to be doing the same for its vast logistics network, which includes almost 200 distribution centers of different types. According to consulting firm MWPVL , Walmart’s intricate network includes such facilities as e-commerce, regional merchandise, grocery and perishables, and import and redistribution centers. Several port authorities have also proven successful by expanding their port services inland. In 2019, for example, the South Carolina Port Authority reported that Inland Port Greer and Inland Port Dillon set a record with 190,539 combined rail movements, a year-over-year increase of 41%. Meanwhile, the Virginia Inland Port, which has rail connections via Norfolk Southern to the port of Virginia, as well as to northern and Midwestern markets, has witnessed growth with such retailers as Home Depot and Kohl’s opening distribution centers in the area to utilize the inland port. Inland ports offer efficiencies by facilitating combined modes of transportation, warehousing close to customer locations, and faster delivery of time-sensitive goods. This is especially true for those in close proximity to airports, such as the Little Rock’s inland port, Central Florida Intermodal Logistics Center in Winter Haven, Fla., and the Rickenbacker Inland Port in Columbus, Ohio. It is likely airports will be in the thick of discussions as municipalities deliberate whether to establish inland ports. Combining all modes of transport within close proximity to large population centers is a win for all involved. Taking this one step further, by utilizing a single technology platform individual inland ports could offer additional value-added services, providing supply chain partners with real-time tools to collaborate, and manage bookings, shipments and visibility into all activities. Kale Logistics has already taken this approach on behalf of the Atlanta Hartsfield Jackson International Airport (ATL). As business-to-consumer and business-to-business e-commerce expands in relevance and importance, inland ports will play an important role in ensuring warehousing and fast delivery options to customers.

Inland Ports: A strategy for faster last-mile deliveries

Delta Cargo expands DASH Door-to-Door service

Lufthansa ramps up cargo-only flights

Related Posts

Saudia Cargo lowers Air Atlanta 747-400F ACMI support

FedEx launches 777F route from China to Australia

ASL to grow Australian subsidiary with four 737-800BCFs

Lufthansa ramps up cargo-only flights

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password