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3 Indiana ports combine to break volume record in 2018.

February 19, 2019

3 Min Read
Burns Harbor
EXPORTS HAPPEN HERE: Here’s an overall shot of Burns Harbor in northwest Indiana, one of three key Indiana ports.

By Stan Maddux 

High yields by Hoosier corn and soybean growers apparently were major factors that helped cargo handled in 2018 at Indiana ports shatter the previous record.

“We had a lot to sell and export. That’s probably a contributor,” says Chris Hurt, Purdue University Extension ag economist.

Coal, grain and soy products saw the biggest increases moving through the Lake Michigan and Ohio River ports, according to The Ports of Indiana. Ports at Burns Harbor, Jeffersonville and Mount Vernon handled 14.8 million tons of cargo in 2018.

Volume was 25% more than 2017 and above the 2015 record by 21%. Officials said 2018 also was the first time the Ports of Indiana broke shipment records in each quarter. It was the fifth consecutive year the three ports combined handled more than 10 million tons of cargo.

Total coal shipments last year were up 58%. The amount of soy products and grain moving through ports was up 26% and 17%, respectively. Steel shipments were up 4%.

Strong year
“We are so grateful for such an extraordinary year and fully appreciate what it took on behalf of all our port businesses and employees to achieve this kind of high-water mark,” says Vanta E. Coda II, chief executive officer of The Ports of Indiana.

Gains follow expansions at the facilities in Burns Harbor and Jeffersonville. There also were investments in existing infrastructure at those two ports and one at Mount Vernon.

“Each of our ports builds and maintains exceptional infrastructure to allow our world-class port businesses to leverage what Indiana does exceedingly well,” Coda says.

Ports at Burns Harbor and Jeffersonville moved more than 2 million tons of steel, the largest commodity handled at those locations.

The Mount Vernon port handled 61% more coal from the previous year and saw increases in ethanol, soy products and dried distillers’ grains.

Farmers benefit
Hurt says increases in farm goods moving through ports reflect strong yields of corn and soybeans in 2017 and a percentage of the state’s record corn and soybean crop last year. Much of the 2018 crop remains in storage.

Hurt notes grain production from Indiana alone doesn’t make much, if any, difference on prices that remain low. But, Hurt says ports capable of handling more product efficiently help farmers reach new markets and keeps transportation costs down.

“Those things do benefit farmers,” Hurt says.

Hurt says there might not be any records this year unless there are larger gains with other commodities or there is a sudden end to the trade war between the U.S and China.

China has dramatically reduced corn and soybean purchases from the U.S. Some of what China once bought is now sold to Europe, Africa and South America. But a good percentage of the surplus hasn’t been absorbed, he says.

More goods moving through ports can be a strong indicator of an improving worldwide economy. “When people have more money out in the world, they tend to spend more and buy more, and that includes these things like commodities,” Hurt says.

Prospects of Indiana building a third Ohio River port near Lawrenceburg still are alive. A Dec. 31 deadline for the state to exercise its option to buy land for port construction was extended to June 30.

Hurt spoke favorably about prospects of Indiana adding another port because of the potential it provides farmers to move more product. Another port would mean more jobs and business activity related to shipping.

Maddux writes from South Bend.

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