EAST BRUNSWICK, N.J.–(BUSINESS WIRE)–Rising Pharma Holdings Inc., dba as Rising Pharmaceuticals, announced the opening of a commercial manufacturing facility in Decatur, Illinois, to manufacture and package sterile products, including injectables and ophthalmic products in response to critical pharmaceutical supply shortages in the U.S. The site comprises a manufacturing and packaging facility spanning a combined 230,000 square feet. The move is expected to augment Rising’s existing product portfolio and offer a wider basket of products for customers.
“Rising Pharmaceuticals is proud to play a significant role supporting the healthcare system by producing more than 180 commercialized generic medicines and over 620 active SKU on the market. With one of the broadest portfolios of any U.S. generic pharmaceuticals company, we recognize that expanding manufacturing capabilities in the U.S. is mission-critical for our continued commercial success, as well as for public health in general,” said Vimal Kavuru, CEO of Rising Pharmaceuticals. “The new facility will adhere to stringent quality standards to produce generic medications that are effective and cost-efficient.”
“We look forward to creating a model of sustainable development through our partnership with the Decatur community, balancing efficient U.S. manufacturing growth while competing in the global pharmaceutical supply chain,” said Steven Coventry, Vice President of Operations and General Manager, Rising Pharmaceuticals. “Our facility is reemerging from a prior closure and has been a staple of the Decatur community since 1952. We anticipate that the new site will help create jobs, economic growth, and enhance healthcare accessibility.”
About Rising Pharmaceuticals
Rising Pharmaceuticals, a portfolio company of H.I.G. Capital, is a leading provider of generic and specialty-branded pharmaceuticals in the U.S. Rising focuses on the development, regulatory, and commercial aspects of the product life cycle while outsourcing certain manufacturing to its network of strategic CMO and CDO partners. The Company is based in New Brunswick, New Jersey, and is expanding its manufacturing footprint with a new facility in Decatur, Illinois. For more information about the Company, please visit www.risingpharma.com.
TILLAMOOK, Ore., March 21, 2023 /PRNewswire/ — Tillamook County Creamery Association (TCCA), the farmer-owned dairy co-op and Certified B Corporation® behind the fastest-growing family-size ice cream brand in the U.S., today announced plans to open an ice cream manufacturing facility in Decatur, Ill. in late 2024.
The Decatur facility will be TCCA’s first owned and operated manufacturing facility outside of Oregon and will be TCCA’s only facility solely dedicated to ice cream production. TCCA also owns and operates two manufacturing facilities in Oregon that are primarily dedicated to cheese production. The Decatur ice cream plant will manufacture Tillamook family-size (48 oz.) ice cream as well as Tillamook foodservice ice cream (3 gallon).
“Consumer demand for Tillamook Ice Cream has grown exponentially over the past several years,” said Mike Bever, Executive Vice President of Operations, TCCA. “This new facility is an investment in our continued national expansion plans. We are proud to be able to expand our manufacturing footprint even further as another step toward bringing Tillamook to more fans around the country.”
The Decatur plant was previously owned by Prairie Farms, which also used the location for ice cream production until closing the facility in early 2022. TCCA will spend the next 18 to 24 months updating the plant to bring it up to TCCA’s manufacturing quality standards, with a goal of October 2024 for the first full ice cream production run. The new plant is expected to create approximately 45 new jobs in the Decatur community.
“Tillamook’s plans to operate here are very exciting for our community and we are proud that another company has chosen Decatur for their first Midwest facility,” said Decatur Mayor Julie Moore Wolfe. “This project also advances Neighborhood Revitalization, as the now-empty building along the MLK corridor will again be a bustling part of our economy as soon as next year.”
TCCA’s headquarters are in Oregon, where the co-op’s farmer-owners and many employees live and work. The company’s existing manufacturing operations in both Tillamook and Boardman, Ore. will continue to operate with no plans to reduce production or the expanding employee base at either location.
“Opening this Illinois manufacturing location will enable us to make more of our ice cream closer to the eastern U.S., where demand for our ice cream is growing fast. In the last year, we’ve added 1.6M households and grown ice cream sales nearly 60% in the eastern U.S.,” Bever continued. “Ultimately our continued growth is a ‘win’ for who and what matters most to us. It allows us to continue to generate meaningful profits for our farmer-owners, create growth and well-being opportunities for our 900+ employees and to give back to the communities where we live and work. Now we get to welcome Decatur into that valued group.”
“Tillamook is a fantastic company that will fit in perfectly here,” said Economic Development Corporation of Decatur-Macon County President Nicole Bateman. “It’s no surprise they selected Decatur for expansion due to our strong business climate, affordable utilities and excellent location with access to a huge base of new customers in the Midwest.”
Tillamook dairy products are currently available in all 50 states across the U.S., including in Illinois and in the Decatur area. Find store locations at Tillamook.com/where-to-buy.
TCCA will begin recruiting to fill positions at its new Decatur facility later in 2023 and early in 2024.
About Tillamook County Creamery Association Founded in 1909 as a farmer-owned cooperative, Tillamook County Creamery Association (TCCA) recently achieved the distinction as a Certified B Corporation® (B Corp™) and prides itself on its commitment to bringing to market the most consistent, best tasting, highest quality dairy products made in the most natural way possible. Guided by the belief that everyone deserves real food that makes them feel good every day, Tillamook® produces internationally recognized, award-winning cheese as well as exceptional ice cream, butter, cream cheese spreads, yogurt, and sour cream, made with unwavering values that never sacrifice or compromise quality for profit. TCCA is owned by a group of farming families, primarily based in Tillamook County, Oregon. TCCA operates production facilities in Tillamook and Boardman, Oregon and employs more than 900 people throughout the state. The Tillamook Creamery is one of the most-visited attractions in the state of Oregon, attracting more than one million visitors each year. For more information on TCCA and Tillamook, visit Tillamook.com.
November 7, 2022 – ADM celebrated the opening of its new North America Microbiology Laboratory at the ADM Specialty Manufacturing Facility. The new facility doubles ADM’s current microbiology laboratory footprint and reflects a significant expansion of its testing capabilities, as well as its footprint in the Decatur community.
“The expansion of ADM’s Specialty Manufacturing Facility demonstrates our commitment to growing our in-house testing capabilities and also ourcontinued investment in the Decatur community,” said Veronica Braker,senior vice president, Global Operations at ADM. “This new facility will driveproductivity and collaboration, accelerate innovation and bring even morehigh-level science and research employment opportunities to Decatur.”
ADM’s Microbiology Laboratory is responsible for testing finished productfrom North America for lot release to the market. The lab initially started inthe late 1960s, and has expanded five times through the years, with 2006being the latest expansion next to ADM’s Decatur East plant.
The new facility will provide testing services to more than 26 ADMmanufacturing facilities located throughout North America. It features state-of-the-art technology providing access to the latest lab and testing innovationas well as the ability to process an exponentially higher volume of tests. Thenew lab will also allow the company to conduct advanced testing in-housesuch as kill-step validations for processing plants, including automationapplications.
In addition, the laboratory will become ISO 17025 accredited for the top fivequality testing methods in early 2023 and will continue to expand itscertification for other methods. A laboratory information managementsystem will also be implemented at the new location in late 2023, allowingfaster reporting to ADM clients.
“We are very excited for this expansion because it enables greater innovationto unlock the power of nature in order to enrich the quality of life,” said LeePerry, vice president, Quality and Food Safety at ADM. “The development ofthis state-of-the-art laboratory directly aligns with our mission and vision tostrive for operational excellence, partner with operations to provide testingsolutions and drive analytical performance.”
DECATUR — Governor JB Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) today awarded the first Reimagining Electric Vehicles in Illinois (REV Illinois) tax incentive package to T/CCI Manufacturing in Decatur. The announcement follows Illinois’ historic passage of the Climate & Equitable Jobs Act (CEJA) and the REV Illinois Act, both of which were part of a groundbreaking initiative to make Illinois the best state in the nation to drive and build an electric vehicle.
“Less than ten months ago, I signed Illinois’ groundbreaking Reimagining Electric Vehicles Act into law. Today, I’m proud to announce we’re welcoming yet another electric vehicle investment to Illinois – and the first of many that ambitious legislation will produce,” said Governor JB Pritzker. “And T/CCI isn’t just investing in their own success – they’re bringing the Decatur community along for the ride. We’re bringing all of Illinois into the 21st century economy, with good jobs and business opportunities, and this investment is yet another way we’re making that our reality.”
The comprehensive incentive package builds on Illinois’ vision of greatly expanding clean energy manufacturing and jobs while creating unique public-private partnerships that will provide opportunities for companies to collaborate on research and development and expand training. In addition to REV incentives valued at $2.2 million, the State’s Fiscal Year 2023 budget appropriated $21.3 million in capital grants to the City of Decatur and Richland Community College to create a first-of-its kind research and innovation facility and training program in partnership with T/CCI. Through competitive incentives and supporting the creation of new state-of-the-art facilities for EV companies to collaborate, Illinois is taking a unique and comprehensive approach to lay the groundwork for additional EV companies to locate or expand in Illinois.
“Our administration is committed to taking the steps needed for a green future that provides the economic opportunities to uplift Illinoisans. This announcement is a major milestone in getting us there,” said Lt. Governor Juliana Stratton. “Illinois’ efforts to bolster electric vehicle manufacturing is creating jobs, investing in our communities, and leading the charge in effective climate action.”
Headquartered in Decatur, T/CCI currently manufactures a variety of compressors suited for combustion vehicles at its Decatur manufacturing facility, while manufacturing compressors for electric vehicles at its facilities abroad in China and India. T/CCI will invest more than $20 million to retool its Decatur facility to transition to electric compressor manufacturing, which will create more than 50 new jobs, while retaining 103 positions of its current workforce for a minimum total of 150 positions.
“Governor Pritzker’s vision for Central Illinois catapults our economic development strategy into the future” said Julie Moore Wolfe, Mayor, City of Decatur. “This is a huge investment in jobs, people, and innovation not only for Decatur and Macon County, but for the entire Central Illinois region.”
“This is a significant moment for T/CCI, the City of Decatur, and the State of Illinois, as we embark on new programs to transition our industry toward widespread electrification,” said Richard Demirjian, President of T/CCI Manufacturing. “T/CCI is recognized in the industry as a leader in compressor technology, already having developed a largest range of EV compressors in the market. We’re excited to use our expertise in innovation and component manufacturing to advance Illinois’ position and create a successful partnership that drives long-lasting economic growth.”
Compressors are a critical component for electric vehicles to function. Unlike vehicles with traditional combustion engines, the compressor in an EV cools the battery in addition to providing air conditioning in the cabin. T/CCI compressors are designed for up to 45,000 hours of life, almost twice the life of other compressor manufacturers. With the largest range of capacity this allows vehicle manufacturers to optimize their systems to achieve the lowest charging times in the industry, along with perfect cabin climate and optimal battery temperature. This ensures the safety of the driver or operator by keeping the battery cool, while also providing comfort in the cabin through air conditioning.
T/CCI partners with Original Equipment Manufacturers (OEM) throughout the design and development phase to pave the road to sustainable transport and expansion. T/CCI’s reputation as a global leader in EV technology will play a critical role in advancing Illinois’ position as a leader in the market, creating a usage model to serve the needs of EV and other relevant industries across the world and conduct research to advance science and innovation in disruptive technologies.
“As we embrace the shift to electrification, it’s public-private partnerships like this that help accelerate our impact on sustainable mobility,” said Michael Grahe, Executive Vice President of Navistar Inc. “Our company has a long-standing partnership with T/CCI for their leadership to deliver technology-based solutions and has recognized their valuable contributions to the industry—including naming them 2022 Supplier of the Year in Innovation. We are excited to see our state making investments in American manufacturing that will help shape the future of transportation as we move to zero emissions.”
“Today’s announcement, the second in Decatur in the last few weeks, is another example of Governor Pritzker’s commitment to spurring economic development in communities across Illinois,” said DCEO Director Sylvia I. Garcia. “We’re proud to partner with leaders like T/CCI, who are investing in innovation, research and development, and manufacturing right here in Illinois that supports the growth of electric vehicles and continues Illinois’ leadership in green technologies.”
Building an Electric Vehicle Innovation Cluster in Central Illinois
As part of the larger incentive package, the State’s Fiscal Year 2023 budget included $15.3 million to Richland Community College and $6 million to the City of Decatur in capital grants to create an EV Innovation Cluster, including a Climatic Center for Innovation & Research Facility. This will support the growth of the EV sector in Illinois by creating innovative training programs and state-of-the-art facilities for research and development, which includes a full-scale climactic center for testing and simulations. The facility will be located on the T/CCI Decatur campus.
Richland Community College and T/CCI are working in partnership with the University of Illinois (UIUC) Grainger College of Engineering and Northern Illinois University on a training academy. The training academy will offer a new workforce training and development program with a focus on EV advanced engineering, software technology, a STEM pathways program, and accredited apprenticeship programs that offer world class training in electrification.
The Climatic Center for Innovation & Research facility will support technology advancements and climatic testing for high voltage systems, battery cooling and both A/C and heat pump capabilities. This Center will include a DC fast charger for electric vehicles for testing capability under both extreme cold and hot conditions. The Center will advance Illinois’ EV leadership position to deliver high-profile research and critical advancements in charging, range, emissions, and data analytics. The Center will be open businesses and researchers looking to accelerate opportunities for faster-to-market technology development, enhanced safety, emissions control criteria development and other advancements that will accelerate adoption of electrified technology.
This collaboration creates a new way of doing business by replacing the traditional siloed approach and combining resources to achieve higher levels of innovation, collaboration, and productivity. The capital investments in this public-private partnership model will build on the expertise, experience, and influence of all participating entities to move Illinois forward as a leader in EV and component manufacturing.
“Together we are establishing a new model for Illinois that sets the stage for how education, research and industry work together to cohesively advance us faster, invest in our people and grow our economy,” said Richland Community College President Cris Valdez. “This state-of-the-art facility will provide world class training in electrification, a registered apprenticeship program, along with immersive industry partnerships and testing available to the electric vehicle industry. At the same time, it will build the bridge from employer and unemployed to keep pace in a rapidly changing economy, and address the need to build a skilled workforce. We are extremely excited to be a part of this endeavor and grateful to Governor Pritzker and DCEO for their investment in Richland Community College.”
REV Illinois is designed to bolster Illinois manufacturing—already a top destination for electric vehicle (EV) manufacturing in the U.S.—and grow the ecosystem to create new capacity for EV and component parts production. REV Illinois offers competitive incentives to expand in or locate to Illinois for companies that manufacture EVs and EV parts or components as well as EV charging stations.
All incentives through REV Illinois are contingent upon job creation and retention, capital investments, annual compensation, and continued operation in the State. The agreement is in the process of being finalized and will be publicly available after it is fully executed.
Companies interested in learning more about REV benefits can visit DCEO’s REV webpage.
In addition to supporting companies looking to expand or transition to electrification, Illinois is also implementing a sweeping workforce development initiative through CEJA to ensure the state’s workforce is prepared for the jobs of the future. Through CEJA, Illinois is also incentivizing Illinoisians to purchase EVs through consumer tax rebates as part of its goal of putting 1 million EVs on the road by 2030.
Decatur, Illinois – Decatur and Macon County, Illinois have been recognized in five separate categories in the Area Development Magazine’s 9th Annual ‘Leading Metro Locations’ Report. Decatur placed 2nd in the Top MSA Economic Strength Indicator Factors; 2nd place in Top MSA Year-Over-Year Growth Factors (1 Year); 4th place in Top Overall MSA by MSA Size: Small; 8th place in Top MSA Economic Growth Factors (5 Years); and 17th in the Top 50 MSA (Metropolitan Statistical Area) Overall.
The report ranked 399 MSAs and Metropolitan Divisions throughout the nation on a per capita basis across 16 key indicators designed to measure economic growth over one and five-year spans. According to Area Development, these results do not rank who is the ‘best’ versus other MSAs in their category, but which MSAs are experiencing the greatest statistical growth over the last five years.
“The recognition by Area Development is a significant feather in the cap of our community and brings international attention to how businesses are successfully investing in Decatur and Macon County,” said Ryan McCrady, president of the Economic Development Corporation of Decatur-Macon County. “We continue to see positive trends in major economic indicators such as total employment and wages earned. The many infrastructure investments made in recent years are beginning to bear fruit, allowing us to use this momentum to realize sustained economic growth for our region.”
Decatur and Macon County’s five separate rankings placed in the top 20 out of 399 cities. A city/MSA can be listed in a maximum of six categories. Launched in 2011, the annual study takes into consideration a mix of key economic indicators, sourced from the Emsi, U.S. Census ACS, BEA and BLS, to measure and rank the economic trajectory and growth of the United States MSAs. In addition to overall rankings, the study also segments results by economic and regional groupings. For more information on the recognitions and Area Development, visit https://www.areadevelopment.com/Leading-Locations/Q4-2019/leading-metro-locations-full-results-2019.shtml.
Table 1: Decatur – Macon County’s Rankings in Area Development Magazine’s ‘Leading Metro Locations’
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About the Economic Development Corporation of Decatur and Macon County
The Economic Development Corporation of Decatur & Macon County is a nonprofit public-private partnership responsible for non-retail business attraction, expansion and retention efforts in Decatur & Macon County. Composed of a combination of leading private sector employers, labor, educational institutions and a variety of governmental bodies, the EDC is uniquely positioned to address the needs of Macon County’s existing business and employer base along with prospective businesses looking to locate in and around the Decatur, Illinois area. The EDC works with local, state and federal partners to provide economic, technical and training assistance to businesses in the Macon County area.
Contact:
Ryan McCrady, President
Economic Development Corporation of Decatur-Macon County
PH: 217-422-9520
BNSF Logistics Park in Elwood, Illinois – The terminal has the second longest turn times of all Chicago intermodal facilities, behind only CN Harvey. Photo credit: Ari Ashe
The Illinois Trucking Association has begun to publish monthly rail turn times in Chicago to highlight the problem of terminal congestion and its impact on delivering to shippers in a timely manner.
Chicago has been known for its rail congestion for decades, but measuring the data and comparing the results provides both shippers and truckers with a tool to evaluate which railroads are most efficient. Shippers can use the information to make routing decisions or to pressure underperforming railroads to address inefficiencies.
This project is similar to how the Harbor Trucking Association monitors turn times in Southern California and works with terminal operators to improve their numbers. Both groups are using the same data company — GeoStamp, which utilizes geofencing technology to measure all aspects of a turn.
Chicago truckers can certainly use the data after two consecutive winters of poor performance into the Midwest hub. Union Pacific Railroad ran into problems when Consolidated Chassis Management ran out of chassis in January due to the onslaught of pre-tariff volumes in December. The railroad grounded containers and prohibited truckers from bringing in their own chassis by announcing it would not “cherry pick” containers out of stacks until further notice, all the while assessing daily storage charges to shippers, a form of terminal demurrage.
The penalties escalated into the thousands for many shippers. In February and March, BNSF Railway and UP both ran out of well cars, which caused them to prohibit trucks from dropping containers until the situation was resolved. Historic floods in the Midwest also disrupted terminal operations. All these events this winter came after an exceptionally poor winter of 2018 when three Class I railroads had to suspend ingating in Chicago because there were too many containers piling up in yards.
Railroads shift transfer responsibility
UP, CSX Transportation, and Norfolk Southern Railway have slashed interline services through Chicago, shifting responsibility to transfer containers between railroads onto shippers and truckers, which has also affected turn times. Until recently, Class I’s would handle exchange via rail, known as a steel-wheel interchange.
Even if the turn time data doesn’t provide a solution, the numbers quantify the problem. Time matters even more if the driver is operating an electronic-logging device on regional drays, which strictly tracks hours-of-service compliance.
The Illinois Trucking Association measured 87,271 drayage moves between December and May. The slowest average monthly turn was 46 minutes in February, while the quickest was 37 minutes last month systemwide.
NS, which operates four intermodal terminals, had the quickest turn times by railroad with 33.6 minutes on a rolling six-month average. UP, BNSF, and CSX were closely behind at between 34 and 35.5 minutes.
Canadian Pacific Railway averaged 47.4 minutes and Canadian National Railway tallied 55.2 minutes. CN’s Harvey terminal was the slowest individual terminal with drivers spending more than an hour on average, including a 10-minute or longer line to exit.
Source: Ashe, Ari. “Chicago Truckers Publishing Rail Turn Times.” US Railroad, 17 June 2019, www.joc.com/rail-intermodal/class-i-railroads/chicago-truckers-publishing-rail-turn-times_20190617.html.
Join the Illinois Small Business Development Center (SBDC) on January 23rd for a FREE workshop on International E-commerce.
Date: Wednesday, January 23 Time: 9 – 11 AM Location: EDC of Decatur – Macon County Office
(101 South Main Street, Suite 600 in Decatur)
This workshop is geared towards companies who export, and will cover the following topics:
e-commerce challenges and opportunities to exporters
selling your products on your website and/or on online international marketplaces like Amazon and Alibaba
marketing strategies to improve your online sales
logistics, customs compliance, and looking up duties and taxes in foreign countries
e-commerce payment methods and best practices
RSVP: Free to attend, registration required to secure a spot (limited space available). Regiser here, email info@cusbdc.org, or call 217-378-8535. All materials will be provided.
“Shippers Leveraging America’s Inland Ports” as seen in American Shipper
Inland ports are continuing to sprout up across the United States and are playing an increasingly important role in supply chain efficiency throughout the nation.
Seaports are seeing larger vessels but fewer calls, meaning more cargo is being offloaded at once, but inland ports can help stagger out the flow of this cargo by offering rail service to and from the seaports, thus easing congestion.
Average containership size on the trades from Asia to the U.S. East and West coasts has steadily increased over the years, as illustrated in the chart below, which was constructed using data from BlueWater Reporting.
As of September, average containership size on the Asia-to-U.S. East Coast trade totaled 8,666 TEUs and average containership size on the Asia-to-U.S. West Coast trade was 8,185 TEUs, up 10.1 percent and 1.9 percent year-over-year, respectively.
There was an especially strong increase on the Asia-to-U.S. East Coast trade between the September reporting periods in 2015 and 2016, which likely was fueled by the Panama Canal’s third set of locks opening in June 2016, allowing the canal to handle vessels of over 14,000 TEUs. Prior to the expansion, the waterway could only handle vessels of up to around 5,000 TEUs.
Average containership size for all U.S. inbound trades combined also has steadily increased over the years, as illustrated in the chart below, which also was built using data from BlueWater Reporting.
As of September, average containership size for all U.S. inbound trades was 6,331 TEUs, up 3.5 percent from a year earlier and up 7.7 percent from two years prior.
Although U.S. ports have been making investments to handle larger vessels, such as deepening and widening channels, ordering larger cranes and building more container storage, the nation’s infrastructure outside the ports has not kept up, thus leading to more congestion on roads.
Inland ports can give shippers more options, which can potentially lead to cheaper transport costs and faster transits. This is especially important in an industry in which a capacity crunch has given carriers the upper hand. Shippers have been left to figure out how to market themselves to become shippers of choice in a carrier’s market in order to even secure capacity.
In particular, inland ports allow shippers to rely less on the trucking industry, which has been experiencing higher freight rates fueled by increased diesel costs, as well as the driver shortage and capacity crunch.
The national average line haul spot rate for van, flatbed and reefer cargo increased in September from a year prior, as illustrated in the chart below, which was constructed using data from DAT Solutions.
As of Oct. 18, U.S. diesel fuel prices averaged $3.298 per gallon, up from $3.184 per gallon a month earlier and $2.727 per gallon a year earlier, according to AAA.
The chart below, built using data from AAA on Oct. 18, illustrates that average diesel fuel prices increased year-over-year in all 50 states, while on a month-over-month basis average diesel fuel prices rose in all states except Utah and Wyoming.
The annualized employee turnover rate at large truckload carriers (those with more than $30 million in annual revenues) and less-than-truckload carriers appears to have been steadily increasing over the last few quarters, while the annualized turnover rate at small truckload carriers (those with less than $30 million in annual revenues) has been declining, as illustrated in the chart below, which was constructed using data from the American Trucking Associations (ATA).
During the second quarter of 2018, the annualized turnover rate at large truckload carriers was the largest since the fourth quarter of 2015, while the annualized turnover rate at LTL carriers was the highest level since the first quarter of 2013, the ATA said. In addition to cutting down on truck miles on the nation’s roads, inland ports often allow exporters to source needed empties from the local inland port rather than at the seaport.
Across the Nation. Looking at some of the nation’s new and notable inland ports, the Appalachian Regional Port (ARP), operated by the Georgia Ports Authority (GPA), just opened in August. Situated in northwest Georgia near I-75 and U.S. 411, ARP is served by CSX, which provides a direct, 388-mile route to and from the Port of Savannah’s Garden City Terminal. GPA said ARP is expected to remove 50,000 trucks and 15 million truck miles from local highways each year.
Cordele Inland Port, through Cordele Intermodal Services, a privately owned logistics provider that specializes in container handling and over-the-road trucking, was Georgia’s first inland port. Cordele Inland Port is located in south central Georgia and is less than a mile from I-75 and Georgia Highways 300 and 280. The inland port offers a direct, 200-mile rail route to and from the Port of Savannah’s Garden City Terminal.
The South Carolina Ports Authority (SCPA) owns and operates Inland Port Greer, which opened in October 2013, and Inland Port Dillon, which opened this April.
Situated in Greer, S.C., along I-85, Inland Port Greer is 212 miles inland from Charleston and about halfway between Atlanta and Charlotte, N.C. Norfolk Southern provides rail service between the Port of Charleston and Inland Port Greer in both directions. Volumes have been surging at Inland Port Greer since it opened. The inland port handled 124,817 rail moves in 2017, up from 103,639 rail moves in 2016, 75,111 in 2015 and 42,555 in 2014, according to statistics provided by SCPA.
“The inland port has been a valuable partner for BMW,” Max Metcalf, BMW Manufacturing manager of government and community relations, said in October. “They have handled over 180,000 containers for us over the past five years and created a much more efficient system for moving containerized product to and from the Port of Charleston. This success is likely replicated for suppliers and numerous other companies that use this facility.”
In Dillon, S.C., at Inland Port Dillon, which is in close proximity to I-95 and U.S. 501, CSX provides rail service in both directions between the inland port and the Port of Charleston. SCPA said in April that Inland Port Dillon was expected to convert 45,000 container movements from truck to rail in the first year of operation.
Although many inland ports exist within a couple of hundred miles of prominent seaports, some inland ports exist in areas farther away from the coast. The Midwest Inland Port, which is about 160 miles southwest of Chicago in Decatur, Ill., allows shippers to avoid Chicago’s congestion and tolls. Midwest Inland Port features an intermodal ramp; direct access to CSX, Canadian National and Norfolk Southern; toll-free access to Interstates 72, 55, 74 and 57 and U.S. 51; and an airport. Although the railroads and airport have been operating in Decatur a long time, grain producer and shipper ADM built an intermodal ramp there five years ago and opened it to other companies’ freight in 2015, Nicole Bateman, executive director at Midwest Inland Port said earlier this year. Turn times at the ADM Intermodal Ramp are holding strong at 24 minutes, Bateman said in October.
Although there is no official inland port nearby, the Port of Los Angeles has an extensive and modern network of on-dock and near-dock rail services, connecting cargo that flows through the port to regions across North America. The Port of Los Angeles claims to be the busiest seaport in the Western Hemisphere and has ranked as the No. 1 container port in the United States each year since 2000.
The port said its rail network includes one near-dock rail yard and five on-dock rail yards that serve its container terminals. The network links to the Alameda Corridor, a dedicated rail expressway that connects the docks to the transcontinental rail system for cargo to flow nonstop between the port and markets throughout North America. The port’s rail network also consists of the near-dock Intermodal Container Transfer Facility (ICTF) and five off-dock mainline rail yards, three of which are operated by Union Pacific and two that are operated by BNSF. The ICTF is operated by Union Pacific and supports the relay of marine cargo containers between the ports of Los Angeles and Long Beach and major rail yards near downtown Los Angeles.
The city of Dallas also plays a huge role in the nation’s intermodal operations with its International Inland Port of Dallas (IIPOD), an intermodal and logistics district that encompasses 7,500 acres and five municipalities. The City of Dallas Office of Economic Development noted that the Dallas-Fort Worth area is at the confluence of three major Class I railroad networks — Union Pacific, BNSF and Kansas City Southern — and that the Dallas-Fort Worth International Airport is the nation’s ninth-largest cargo airport and the only airport with the capacity to double operations in its existing footprint.
IIPOD is served by thee major interstates (I-35 E, I-20 and I-45) and a Union Pacific intermodal terminal. Major manufacturing tenants at IIPOD include American Textile, Pioneer Frozen Foods, Niagara Bottling and Serta Dormae. Major corporate logistics and distribution tenants include Amazon, Conn’s, Home Depot, L’Oreal, National Tire & Battery, RR Donnelley & Sons and Thermo Fisher Scientific, while major 3PLs include FedEx Supply Chain and NFI Industries.
Looking ahead, an inland port is being planned in Salt Lake City. The inland port authority’s board was created by the Utah Legislature during the 2018 general session, which ran from Jan. 22 to March 8. However, the board has faced heat over a lack of transparency, and the project also has raised concerns from environmental groups.
The board held a public hearing Thursday to accept public comments and consider adopting an annual budget. Following the meeting, the board issued a press release saying that it “approved a budget to procure a search firm for an executive director, hire an interim administrator and facilitate a process for public engagement and input for the scope of the project.” The board also said it “approved a statement of work to develop a business plan that includes, among other things, economic and environmental impact studies.”
“In addition to the adoption of a budget, the board established a technical committee to advise the board on issues relating to economic impact, environmental considerations, transportation planning and other issues related to the planning efforts,” it added.
Source: Desormeaux, Hailey. “Shippers Leveraging America’s Inland Ports.” Full Stories – Caption as the Content – ASD Version | FullASD | American Shipper, 26 Oct. 2018, www.americanshipper.com/main/fullasd/shippers-leveraging-americas-inland-ports-72779.aspx?utm_source=AS%2BDaily%2BNewsletter&utm_campaign=a5697d835d-EMAIL_CAMPAIGN_2018_10_26_05_09&utm_medium=email&utm_term=0_485fa13138-a5697d835d-62904497.
As many American consumers embrace holistic health and are making healthier and fresher food choices, there are impacts to the country’s food supply chain. For retail grocers to capture market share, they must be able to guarantee the highest quality product at the lowest prices, giving transportation providers a vital role in the logistics of getting fresh or perishable foods to the end consumer quickly and efficiently.
This process is not simple and is only getting more complex. There is a significant and worsening labor shortfall in the trucking industry that affects critical pickup and delivery times across the country.
Heinkel’s Packing Co., Inc., based in Decatur, Ill., ships a variety of meat products to grocery stores and restaurants in 42 states, primarily by truck from the Midwest Inland Port.
“In our line of business, the biggest challenge we deal with is shippers not showing up on time—with several shipments going out at the same time, everything needs to be refrigerated,” says Wes Heinkel, president of Heinkel’s. “The inland port can give us a big advantage against competing manufacturers in Chicago.”
Trucking delays can often exceed seven days in major markets, which leaves food far from fresh. Seafood and other perishable foods that come from coasts need to be flown inland and get to their destinations quickly. Metropolitan cities with the heaviest wait times throughout the Midwest include Chicago, Detroit, Columbus, Cincinnati, and Kansas City.
Producers are in need of alternatives to get their goods to the final destination on time and are turning to solutions outside of the traditionally-used congested areas. They are finding that inland ports with access to highways, rail, and air can serve as central transportation hubs, and help them overcome current transportation challenges.
What’s Driving the Issue
The global fresh food packaging market is growing rapidly due to various government initiatives toward food safety and an upsurge for small portion food items, or demand for single-use packaging. Ready-to-eat and fresh products are one of the few segments of the industry that has shown consistent growth within the last few years.
Fresh sales comprise nearly one-third of food industry sales, according to website data from IRI. In a 2016 retail report from United Fresh Produce Association, sales of fresh produce rose 1.5 percent more in volume and 3.6 percent in weekly dollar sales. The global fresh food packaging market is estimated to grow at 4 percent annually over the next five years.
The logistics infrastructure of supply procurement, transport, storage, and end customer delivery is even more complicated when temperature-control and perishability come into play. This cold supply chain requires knowing when, where, and how your shipments are moving and constantly searching for innovations and improvements to current processes.
The clock is always ticking for fresh food delivery, from the time the food is ready to leave the supplier until it reaches store shelves. Equipment and technology are imperative to prolong the freshness of product, addressing the constant concern of spoilage, and the even more worrisome consumer health scare. The fresh supply chain must be faster and more focused on quality from producer to the final destination. With industry-imposed shelf life and sell-by dates, maintaining the integrity of the food is paramount.
Fresh Food Delivery Quickly Reaching More Retailers
When it comes to distributing fresh food, location matters. The Midwest Inland Port is a multi-modal hub located in Decatur, Ill., that delivers both domestic and international flexibility for companies through a well-positioned transportation corridor connecting the Midwest to the East, West, and Gulf Coasts of North America.
The market is consistently growing for easy access to fresh food, and quality—not price—is what often drives consumer satisfaction. That translates into new strategies to deliver highly perishable food as quick as possible. While retailers use various approaches to address perishability during shipment—such as picking and shipping produce that ripens en route or cutting fruit in-store—the most common request from grocers is simply more frequent deliveries with tighter time windows.
Decatur’s centralized geography allows for a one-day truck drive distribution reach to more than 95 million consumers within a 500-mile radius. There are more food and beverage expenditures in a 500-mile radius of Decatur than most other Midwestern cities: $284 billion from Decatur, $251 billion from Chicago, and $278 billion from St. Louis.
Decatur is home to global food giants Archer Daniels Midland (ADM) and Tate & Lyle. The Midwest Inland Port’s location can also provide a solution for smaller companies, like National Foodworks Services, a food incubator like many around the country taking hold to provide a more cost-effective solution to develop, market, and move goods; Soozie’s Doozies, a cookie dough company that moved to Decatur from St. Louis after they won ADM’s Food Innovation Challenge; and Stratas Foods, a supplier of fats and oils to the food service, food ingredients, and retail private label markets in North America.
Strategically located, the logistics complex encompasses rail, air, and trucking—offering uncongested, toll-free access to one of the country’s heaviest trucking and railway traffic flows, connected to Interstates 72, 55, 74, 57, and U.S. Highway 51.
In addition to its highway and rail networks, Decatur has a 2,000-acre airport with 8,400-foot runways capable of supporting wide-body cargo aircraft. The quick-access airport benefits companies transporting seafood and other perishable foods coming from the coasts that need to be flown in for Midwest territory distribution.
There’s also direct access to three Class 1 Railroads (NS, CN, CSX) connecting to all North American rail networks. And the ADM Intermodal ramp with 25-minute average turn times allows drivers to spend more time on the road covering greater distances rather than sitting in long lines cutting into valuable drive time.
Rural King, a farm and home store based 40 miles southeast of Decatur in Mattoon, Ill., has over 100 stores in 13 states. It relies on the inland port for some imports that are railed to Decatur from Canada and Los Angeles. The company picks up those goods with its own trucks and takes them to its distribution center at Mattoon.
“We used to bring everything in through Chicago. The wait time and delays continuously stalled on-time delivery,” says Alex Melvin, president of Rural King. “It made sense for us to move to the Midwest Inland Port. The ease of use and savings in both time and dollars has had a positive impact on our logistics operations.”
Getting fresh goods to market that are still fresh upon arrival remains a major challenge for retailers around the country. Taking advantage of inland ports can relieve pressure for companies that need quick turnaround and transport times.
Business Facilities Magazine’s 14th Annual Metro Rankings are in and the Decatur area received a first-place ranking in their Agricultural Bioscience Employment category. Their editors based their ranking on agricultural feedstock employment leaders from the 2018 BIO Report. The agricultural feedstock and industrial biosciences subsector applies life sciences knowledge, biochemistry and biotechnologies to the processing and production of agricultural goods as well as organic and agricultural chemicals. The subsector also includes activities around the production of biofuels and feedstocks for biobased polymers. Examples of such products include: corn and soybean oil, ethanol and biodiesel fuels, plastics and textiles synthesized from plant-based feedstock, and biobased ingredients for cosmetics, personal care products, flavors and fragrances.
“People are astounded when they learn about the array of products that are produced by Decatur, Illinois companies,” said Ryan McCrady, president of the Economic Development Corporation of Decatur-Macon County. “A first-place ranking highlighting our prominence in the agricultural bioscience sector recognizes Decatur’s strong workforce and grabs the attention of companies looking to expand their businesses into the Midwest.”
The Decatur Metropolitan Statistical Area (MSA) had twice the number of people employed in the feedstock and biosciences subsector compared to second-place finisher Houston, Texas and three times that of the Chicago MSA. Decatur is home to global companies like ADM and Tate & Lyle, and a broad-based network of ancillary and supporting businesses.
“ADM’s operations in Decatur — and our people here — have been instrumental to our company’s success for generations,” said Chris Cuddy, ADM senior vice president and president of the company’s Carbohydrate Solutions business unit. “Today, while our company is doing business in more places around the world than ever before, Decatur remains home to more ADM colleagues than any other single location in our global network, and we will continue to work with community leaders to promote Decatur as a great place to live, work and do business.”
Shown above are the Metropolitan Statistical Areas with the Largest Employment Levels in Agricultural Feedstock and Industrial Biosciences, 2016. Source: Biotechnology Innovation Organization
About the Economic Development Corporation of Decatur and Macon County
The Economic Development Corporation of Decatur & Macon County is a nonprofit public-private partnership responsible for non-retail business attraction, expansion and retention efforts in Decatur & Macon County. Composed of a combination of leading private sector employers, labor, educational institutions and a variety of governmental bodies, the EDC is uniquely positioned to address the needs of Macon County’s existing business and employer base along with prospective businesses looking to locate in and around the Decatur, Illinois area. The EDC works with local, state and federal partners to provide economic, technical and training assistance to businesses in the Macon County area.
