Ports of Indiana Reports Record Year

Indiana's three ports on Lake Michigan and the Ohio River moved 7.7 million tons of cargo. The top cargoes by volume included grain, coal and steel.

Source: Inside INdiana Business

Press Release

February 16, 2006 – The Ports of Indiana handled an all-time high of $1.531 billion of cargo in 2005. This was a 2 percent increase from 2004, which had been the only other year to break the $1 billion mark in the port system's 35-year history. In 2005, Indiana's three ports on Lake Michigan and the Ohio River moved 7.7 million tons of cargo – which was a 2-percent increase from 2004, a 38-percent jump from 2003 and more than every other year since 1998. Top cargoes by volume were grain, coal, steel, limestone, fertilizer, salt, asphalt and cement. As a state, Indiana ranks 14th in the nation for waterborne shipping by volume. The Ports of Indiana operates a system of ports in Mount Vernon, Jeffersonville and Burns Harbor/Portage.

"We have a tremendous group of companies located at our three ports," said Rich Cooper, executive director for the Ports of Indiana. "Our shipping totals directly reflect their ability to grow their businesses and thrive in a very competitive global marketplace. One of our primary goals is to continue to create a port environment that provides our business partners with sustainable competitive advantages."

Grain remained the largest volume cargo handled at the three ports with 2.2 million tons (+3%), just edging out coal shipments of 2.1 million tons (+21%). Grain and coal made up about 57 percent of the total cargo volume. Cargo value for the Ports of Indiana is largely dependent on steel prices which have nearly doubled in recent years. In 2005, steel made up 16 percent of the port system's total tonnage but more than 40 percent of the total value. Steel shipments are also very labor intensive and generate many additional handling and processing jobs at the ports.

"We were extremely proud of our record numbers in 2004," Cooper said, "but we set our sights on improving those results in 2005. Now we look forward to keeping this momentum going and continuing to work closely with Gov. Daniels, the Indiana Economic Development Corp. and the state's many economic development leaders in attracting new business to Indiana."

The Port of Indiana-Mount Vernon finished 2005 with nearly 3.8 million tons, its highest volume since 1998 and a 13-percent increase on top of last year's 45-percent jump. The 2005 total was 53 percent better than the port's average tonnage over the five previous years. There were major increases in steel (+45%), coal (+21%), grain (+8%) as well as additional limestone tonnage. Mount Vernon ranks as the eighth largest inland port in the country based on trip ton-miles (tons x miles) according to U.S. Army Corps of Engineers Waterborne Commerce Statistics Center.

The Port of Indiana-Jeffersonville finished the year 6 percent ahead of its previous five-year average with 1.6 million tons, equaling its 2004 shipping volume. There were major increases from 2004 in asphalt (+956%), grain (+6%) and additional coke shipments. The port also handled more than 16,000 railcars for the first-time in the facility's 20-year history.

The Port of Indiana-Burns Harbor surpassed its five-year average by 2 percent with 2.2 million tons in 2005. There were shipping increases in magnesite (+166%), cottonseed (+113%), asphalt (+111%), fertilizer (+57%), limestone (+33%), project cargo (+6%) and additional coal shipments. The port handled more than $677 million of steel in 2005 and roughly 15 percent of all U.S. steel trade with Europe.

The 2005 hurricanes in the Gulf of Mexico had a varied impact on the Ports of Indiana. Barge shortages on the Ohio-Mississippi river system forced shippers to look for cargo handling alternatives - usually at an increased cost. While this may have hampered some end-of-year river shipments at all ports, it also rerouted some additional cargo to ships at the state's Lake Michigan port. Due to these shipping disruptions, all three of Indiana's ports experienced increased onsite grain storage totaling about 2 million bushels, an 18 percent increase from the normal capacity. Increases by port were 1 million bushels at Burns Harbor (+20%), 850,000 bushels at Jeffersonville (+53%) and 200,000 bushels (+4%) at Mount Vernon.

In addition to operating a statewide port system, the Ports of Indiana also provides foreign-trade zones and development financing for companies anywhere in Indiana. For more information about the Ports of Indiana, visit www.portsofindiana.com.

Source: Ports of Indiana