23 Feb 2024

The Supply Chain Role of Inland Ports in Nebraska

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The Supply Chain Role of Inland Ports in Nebraska

The Nebraska Legislative Session hosted in 2021 saw the introduction of the Nebraska Municipal Inland Port Authority Act. County and city leadership partnered with the Greater Fremont Development Council (GFDC) to start the project to improve opportunities in the community. The Dodge County Board of Supervisors and Fremont City Council approved an interlocal agreement to pursue the Nebraskan Municipal Inland Port Authority Act in January 2022. The bill designated an area for developing five Port Authorities across Nebraska.

The Supply Chain Role of Inland Ports in Nebraska

The Fremont and Dodge County site was the first designated Municipal Inland Port Authority authorized on February 14th, 2023. A Port Authority operates as a quasi-government body receiving powers to regulate operations in the Port Authority District.

The powers allow for the creation of site development and funding facilities. This strategy alleviates the pressure on infrastructure development by the county and city. The Port Authority aims to provide the state of Nebraska with economic development tools to develop industrial sites that attract investment and business to the state.

What Is an Inland Port?

So, what is an inland port, and how does it benefit local businesses and supply chains? These facilities aren’t a new concept; they’re a common logistics operations trend for modern supply chains.

Because of its landlocked geography, the rise of inland ports across Nebraska offers strategic advantages for local supply chains. Inland ports and intermodal facilities play a crucial role in the state’s transportation infrastructure.

Inland ports offer a pragmatic solution to quell increasing demand on supply chains. This addresses shifting transportation infrastructure, efficiency, and capacity requirements. Inland ports create effective and efficient distribution channels in strategic locations across Nebraska. Helping local businesses access larger labor markets and pools.

This improvement benefits local Nebraskan businesses during peak season demand periods. An inland port assists with the movement of international deliveries from seaports to Nebraska.

An inland port doesn’t create competition for seaports. These facilities act as a complementary solution for supply chain management to improve freight distribution strategies. When an inbound container arrives at a seaport, it spreads its load across several storage facilities.

Failure to move these loads quickly and efficiently creates supply chain bottlenecks. Therefore, disrupts the fast movement of goods through the entire supply chain. These disruptions lead to backlogs that cause problems for the Port Authority and businesses along the supply chain.

An inland port allows businesses to pass cargo through terminals fast, improving cost efficiencies. The result is a faster time at the port and a reduction in the time vessels wait to offload at the seaport.

Also, improving supply chain efficiency, and extending the reach of international trade networks into a country’s interior intermodal facilities and distribution centers.

How Inland Ports Create Resilient Supply Chains

The modern consumer is acutely aware of the impact of social responsibility and environmental factors the supply chain has on the world. Businesses failing to commit to forming sustainable supply chains risk damage to profitability by lowering customer retention.

It’s common for inland ports to appear on industrial sites. They support the sustainability of supply chains by leveraging environmental initiatives. Creating inland ports allows businesses to implement energy standards. You can do this without having to build new railroad or warehouse construction facilities.

The Association of American Railroads published a study comparing rail cars and trucks on the road. It states that loading 100 rail cars has an equivalent environmental impact to removing 300 trucks from the road.

According to the findings, rail service is four times more efficient than trucking in terms of the emissions produced. In turn, reducing carbon emissions by up to 75%.

Therefore, businesses utilizing inland ports contribute to reducing carbon emissions and the effect of climate change on the planet. Reducing fuel consumption is one of the advantages offered by Inland ports. It creates a stronger supply chain infrastructure through advanced technology solutions and business partnerships through public and private entities in the United States.

This upgrade to the supply chain infrastructure enhances cargo management and tracking as well. Improving the visibility of movement along the supply chain. Visibility improvement leads to enhanced data collection. In turn, mitigates the risk of disruption while improving the resilience of all supply chain stages.

Economic Development in Nebraska

In Nebraska, the Department of Economic Development (DED) plays a significant role in fostering economic growth. It promotes business development and supports initiatives that enhance the state’s ability to compete.

The Interlocal Cooperation Act in Nebraska promotes cooperation and collaboration among local government entities. It addresses common challenges, delivers services more efficiently, and enhances the quality of life for residents.

Serving as a valuable tool for promoting regional cooperation, it fosters intergovernmental partnerships. Therefore maximizing the use of resources to achieve specific goals and objectives.

Foreign Trade Zones

Foreign trade zones (FTZ) focus primarily on providing financial and regulatory benefits to businesses doing international trade. However, inland ports focus on enhancing the efficiency and accessibility of transportation networks within the interior.

Inland Ports in Nebraska

Inland port districts in Nebraska offer businesses and logistics firms an effective solution to bolster the efficiency and efficacy of the supply chain. It improves the speed of cargo transportation from seaports to distributors, manufacturers, and customers across the state.

Developing further inland port projects across Nebraska is key to improving supply chain resilience and sustainability. At the same time, lessening environmental impact.

The advantages of inland ports in Nebraska allow the supply chain to meet the growing customer expectations. Multi-modal transportation aids in customer retention and satisfaction.

Additional Reading: Blueprint Nebraska-Growing the Good Life

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