Shipping
EXPANDED CINCINNATI PORT REGION OFFERS OPPORTUNITIES
March 25, 2015
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An expanded port region is expected to give Cincinnati a boost in its attempt to draw more shipping – and manufacturing – from Asia.

Laura Brunner, president and CEO of the Port of Greater Cincinnati, believes that rankings are important to attracting international business.

“When international companies look for information, they sort through lists and rankings,” Brunner says. “Those with a high ranking will get a look, whereas those that don’t are often passed over.”

Just recently, the Port of Cincinnati expanded its geographic region to become the Ports of Cincinnati & Northern Kentucky – the second-busiest inland US port, thanks to a US federal ruling issued on February 5. That port district now includes a 365 kilometre reach of the Ohio River, including an 11-kilometre reach of the Licking River, in 15 counties.

The Port of Cincinnati in 2012 was listed 51st in US Army Corps statistical reporting, ranked by total freight tonnage.

The port authorities expect the Ports of Cincinnati & Northern Kentucky new port region will reflect more than 48 million freight tons handled and rise to the 15th-busiest port district and the second-busiest inland river port in the United States. The new port tonnages will officially begin with the calendar year 2014 database and publications.

The Port of Greater Cincinnati Development Authority and Northern Kentucky Port Authority petitioned the federal government for an expanded port boundary to support the Central Ohio River Business Association, a river commerce trade association whose members were advocating for a larger port region that captures an accurate scope of regional maritime commerce.

 “We did this as advocates for the 80 private terminal operators along both sides of the Ohio River in Ohio and Northern Kentucky,” Brunner says. “It will help them market and draw attention to the vitality of this region.”

Johnna Reeder, president and CEO of Cincinnati’s regional economic development initiative, REDI Cincinnati, sees the expanded port district as a strong play for the region’s economic development efforts. “This increase in status will create higher visibility for the collective port community and improve our region's ability to compete in an increasingly global market,” she said.

Business coming from Asia is important to the Greater Cincinnati and Northern Kentucky region – both as imports and as manufacturers choosing to operate there. Asian businesses in the region gain support from area organizations such as the Greater Cincinnati Chinese Chamber of Commerce and the Japan America Society of Greater Cincinnati.

While Brunner admits it is difficult to predict what sorts of businesses will come as a result of the re-designation, particularly since this is happening at same time as the Panama Canal is undergoing an expansion, she is confident new manufacturing businesses will move in along both sides of the Ohio River.

“There will be development of previous farmland into manufacturing because of the ease of transportation,” she says.

Besides increased opportunities for inland waterway (barge) activity on the Ohio River, Cincinnati is served by two Class 1 railroads (CSX and Norfolk Southern) and three major interstate highways. DHL also operates its air cargo hub at Cincinnati/Northern Kentucky International Airport (CVG), one of only four air cargo hubs in the Midwest.

A big plus is the region’s intermodal capabilities. “Intermodal is all about multiple modes of transportation close together,” Brunner says. “Cincinnati itself is the center of the 26 mile (42 kilometre) port designation. That is where we have Class 1 railroads and the intersection of Interstates 71, 75, and 70.”

In fact, a Regional Freight Plan, completed in 2011 by the Ohio-Kentucky-Indiana Regional Council of Governments (OKI), forecasts that changes in the global supply chain will increase overall freight volumes in the OKI region by 56% by 2040, from 323 million tons in 2009 to 487 million tons in 2040. Truck traffic is forecast to increase from 9.8 million loaded trucks in 2009 to 16 million loaded trucks by 2040, a 63% increase over 30 years. Rail traffic is estimated to increase from approximately 33,000 trains per year in 2009 to 45,000 trains per year in 2040. This will increase trains in the region from 90 to 130 per day by 2040.

Also significant to Ohio River business are the increasing amounts of shale coming down from northern Ohio.

“This intersects with manufacturing opportunities along the Ohio River where there is quite a bit of undeveloped real estate,” Brunner says. “The re-designation will help communities along the river market themselves more aggressively.”

Consequently, Brunner believes the area will see growth in its polymer industry. Polymers are one of the clusters in which Ohio is especially prolific. “It will become increasing more attractive with increased opportunities along the Ohio River,” she says.

Other key clusters in the region are aviation/aerospace, steel manufacturing, in addition to a variety of products that feed into those industries.

 

By Karen E Thuermer

Correspondent | Washington