The Central New York Inland Port was originally proposed in 2005 and intended to provide a rail and motor facility for transporting cargo in and out of the Syracuse area. The state considered building the port in an old quarry in Jamesville and an industrial waste site in Camillus. And in early November, an existing rail yard near the border of DeWitt and Manlius came into the running.

More than a decade later, it doesn’t seem like the much-needed port is any closer to being finished. And the longer it’s delayed, the more economic benefits central New York misses out on.

Central New York is served by the Port of New York and New Jersey — the most active on the East Coast. And the port has only become more congested since the Panama Canal’s 2016 expansion, according to thePort of New York and New Jersey website.

That congestion makes an inland port even more necessary. It could help process all that excess cargo, said Gary La Point, a professor of supply chain management at Syracuse University, in an email.

It may seem like central New York is far from Bi-State PANYNJ. But the availability of rail services at the inland port would actually cut shipping costs. Trains are most cost-efficient when they travel longer distances, and most of the proposed inland port sites are 250 miles or further from the PANYNJ, which would enable the rail companies to move cargo at a cost-effective rate.

Those savings on transportation could transfer to central New York businesses, allowing them to expand and export products on a global scale. After all, there are plenty of companies within the Syracuse area that want to export their products overseas, said Rich Roche, vice president of international transportation at Mohawk Global Logistics, a supply chain solutions company with offices across the Northeast.

Companies can’t currently afford the transportation cost because they have to send their cargo to and from the PANYNJ by truck. Roche said rail transportation can be far cheaper than trucks, and the inland port would allow businesses to transport cargo to and from the port by rail and truck, greatly reducing transportation costs. The port would also have maintenance repair, truck-to-rail transfer and other value-added services for companies to utilize.

The current high cost of shipping presents another challenge, Roche said.

“Imports dominate exports,” Roche said. “Since companies can’t afford the current transportation costs, empty containers are going back to the port.”

Ideally, a full container of cargo would be imported and then sent back to the port full of cargo to be exported. But export cargo tends to be much lower in value than imports, so it may not remain competitive enough in price when burdened with trucking costs to the ocean port. The availability of rail transportation from the inland port could level that imbalance. Roche said. The addition of rail transportation from the inland port could reverse that imbalance.

“We anticipate that, within a few years of the inland port running, that our supply of empty inbound containers will not meet our demand for exports,” Roche said. “That is not a bad thing since it means we will have achieved export growth for the region.”

Central New York has failed to be a globally competitive region. As global trade only becomes more competitive, the region will continue to be left behind if something doesn’t change.

An inland port can help central New York stay relevant. Inland ports have proven economic results, so there’s no risk or reason to keep delaying this one.

The Virginia Inland Port opened in 1989, and since then it has added significant value to the local area. It has attracted manufacturing and distribution centers from major companies such as Red Bull, Kohl’s and Rite Aid, according to the Port of Virginia website. Red Bull now imports its products exclusively through the port.

In 2013, the Virginia Inland Port processed a total of 31,539 containers with more than 270,000 tons of cargo, generating more than $1.6 billion in revenue. The port also supports about 14,000 direct and indirect jobs.

These are the kinds of economic benefits Syracuse and central New York desperately need. The port would both attract new businesses to Syracuse and enhance existing businesses.

“The port could be a huge market changer for how business transacts today,” Roche said. “It will help current importers and bring out new exporters.”

The port is still held up due to political and lobbying differences. But there shouldn’t be anything political to it. An inland port would create jobs, facilitate shipping and let Syracuse compete on a global scale.

Daniel Strauss is a junior finance major and public communications minor. His column appears biweekly. He can be reached at dstrauss@syr.edu and followed on Twitter @_thestrauss_.

Published on November 28, 2017 at 12:49 am