The U.S. logistics and transportation industry spent roughly $1.48 trillion in 2015, which represented 8 percent of the total annual GDP. The industry consists of several different transportation methods including over the road, railway, air and sea. An area that’s seeing incredible growth, especially in Kansas City, is intermodal transportation.
Intermodal shipping incorporates multiple modes of transportation to capitalize on the advantages of rail while also recognizing the necessity and convenience of other shipping methods. The growth of intermodal shipping is facilitated in Kansas City due to a variety of factors, including the railways, inland ports and foreign-trade zones.
Many executives in the transportation and logistics industry are starting to see coastal ports reach maximum capacity. Their inability to handle the influx of goods has forced companies to ship their cargo inland to ports such as Kansas City’s Logistic Park. With many different railways traveling in or through the area, shippers have the ability to reach upwards of 80 percent of the U.S. population within two days, according to KC SmartPort. Inbound Logistics recently reported on this growing trend and even referenced Kansas City as one of the most advanced hubs for intermodal infrastructure. The advanced intermodal facility is equipped with several wide-span, electric, rail-mounted gantry cranes that help reduce the number of trucks needed to move containers within the vast facility while also reducing onsite emissions.
The fact that the metro features two different foreign-trade zones adds to the benefit of working in the area. On the Missouri side, there is zone 15, which meets the trade zone needs in 22 contiguous counties. On the Kansas side, Zone 17 serves nine counties. These zones provide users many cost-saving benefits for shippers as merchandise and goods are not subjected to U.S. taxes.
To learn more about intermodal freight transportation and to see if this method can benefit your business, we encourage you to visit our website and fill out one of our quick quote forms.