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With Its Enviable Infrastructure Featuring Runway, Road, Rail, and River Access, Memphis Is a Model of Logistics Diversity

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With Its Enviable Infrastructure Featuring Runway, Road, Rail, and River Access, Memphis Is a Model of Logistics Diversity SPECIAL ADVERTISING SECTION OF THE JOURNAL OF COMMERCE SPECIAL ADVERTISING SECTION OF THE JOURNAL OF COMMERCE With its enviable infrastructure featuring runway, road, rail, and river access, Memphis is a model of logistics diversity. Shutterstock.com 52 The Journal of Commerce | October 15 2018 www.joc.com www.joc.com SPECIAL ADVERTISING SECTION OF THE JOURNAL OF COMMERCE SPECIAL ADVERTISING SECTION OF THE JOURNAL OF COMMERCE MEMPHIS TRADE Trade Nexus Inland potential expands in Memphis By John Powers THE EFFICACY OF inland ports is supported to-common coastal congestion. “Even though America and second-busiest in the world. In by the number being opened by deep-water many ocean carriers are reluctant to have 2017, the airport handled 4.33 million metric ports. Driven by the need to optimize terminal their containers moved to inland points, in tons of cargo. Much of this activity is attributable efficiency, seaports are eager to mitigate the many instances, shippers are able to negotiate to its location as a global hub for FedEx, the threat of on-port congestion by transferring preferential all-in rates to inland destinations,” world’s busiest freight-parcel carrier, as ranked boxes as quickly as possible to strategically McDuffie added. by AirCargo News in July (according to IATA situated inland hubs, in some instances even With its enviable infrastructure featuring 2018 World Air Transport Statistics). No. 3 outside the borders of their home states. “There access via airport runways, interstate roadways, cargo carrier UPS and seven other all-cargo are more and more pressures on port cities to rail networks, and the mighty Mississippi River, airlines also serve Memphis. The airport is deal with congestion issues. They have to look perhaps no other location in North America can virtually weatherproof with 99.5 percent uptime. at ways to prepare a release valve,” explained match the logistics diversity of the inland port This combination of advantages compels Richard McDuffie, chief operating officer for of Memphis, Tennessee. Known as “America’s shippers to locate in proximity to the airport to Dunavant Global Logistics Group. Layer on Distribution Center,” the city and region boast take advantage of extensive lift capacity and similar ventures by regional development long-established resources to handle cargo latest possible cutoffs. “Shippers regularly authorities, government entities, and private efficiently, noted Mark H. George, chairman of establish distribution centers in Memphis developers, and the proliferation is in full swing. Memphis-based drayage and logistics service because it gives them easy access to an airport It’s a win-win-win situation. Ocean ports provider IMC Companies. “Our workforce that can ship their cargo around the world,” maximize terminal, equipment, and manpower includes more experienced logistics workers George said. utilization. Inland ports enjoy the economic per capita than any other top 100 US city. Highway connectivity in the region is impact, job creation, and tax revenues Memphis’ low cost of living also makes it unparalleled. “Not many US cities can offer associated with increased freight activity. attractive,” he added. access to 80 percent of the population of Shippers improve overall transit time by reducing Since 1995, Memphis International Airport the country in one truck day,” McDuffie said. the time containers are tied up at port in all- has been the busiest cargo handler in North Interstate 40, the nation’s third-busiest trucking www.joc.com October 15 2018 | The Journal of Commerce 53 SPECIAL ADVERTISING SECTION OF THE JOURNAL OF COMMERCE SPECIAL ADVERTISING SECTION OF THE JOURNAL OF COMMERCE MEMPHIS TRADE In 2017, Memphis International Airport — global hub for FedEx — handled 4.33 million tons of cargo. Shutterstock.com MORE THAN 36 YEARS OF DEDICATION TO INTERMODAL SHIPPING WE ARE EIGHT companies with one mission: • Nine operating companies maximizing • Per diem spend. To provide exceptional international supply efficiencies shared back office support. • Chassis utilization and spend. chain solutions. • 11,000+ containers and chassis stored in • Equipment pool reporting. IMC Companies is the largest marine our depots every day. • Containers that are available for pick drayage company in the United States with up at the port and rail. over 1,900 drivers nationwide. Our company INVESTMENT IN TECHNOLOGY • LFD reporting for all equipment that was founded in 1982. For 36 years, IMC At IMC Companies, we believe what has arrived at the rail or port. Companies has remained focused on the gets measured gets managed. Our invest- • Tracking for all active shipments. international supply chain and has grown to ments in technology help us to leverage • Real time status information. provide services that include drayage, cus- efficiencies, improve the driver experi- • Geo-fencing data so that trucks auto- toms brokerage, expedited services, freight ence and share valuable information with matically notify arrival and departure forwarding, warehousing, chassis provision- our customers. IMC Companies allows information. ing, and secured container storage. our customers visibility to the information • EDI integration. Each of our nine companies share the below and more: • Web portal. same back office support. We are safety • Dwell time (containers and chassis). focused and invest in technology. Our • Timely empty terminations based To learn more about IMC Companies company presidents are local experts with on time-of-empty notify to empty and family brands, visit: ownership in their business. This enables termination. www.imccompanies.com. n IMC Companies to pair regional expertise with nationwide coverage and our teams to develop some of the most innovative custom- er solutions in the industry. BY THE NUMBERS • Founded in 1982, focused on internation- al supply chain for over 36 years. • Over 1,900 trucks. 54 The Journal of Commerce | October 15 2018 www.joc.com www.joc.com SPECIAL ADVERTISING SECTION OF THE JOURNAL OF COMMERCE SPECIAL ADVERTISING SECTION OF THE JOURNAL OF COMMERCE MEMPHIS TRADE lane, connects the Atlantic and Pacific coasts Drive/I-78 corridor boasts 30 drivers and impact of the Lamar Avenue upgrades. “This directly to Memphis. For north-south traffic, tractors serving that area. The company is is a critical freight corridor and improvements Interstate 55 provides access to the Midwest adding manpower for safety and support are long overdue,” George said. “These and heartland. Memphis is the origin of the functions as well as logistics managers for improvements will make us more productive, new Interstate 22 connecting directly to its global accounts. create less stress for our drivers and allow us Birmingham, Alabama, and Atlanta. Interstate IMC Companies, which reported to provide a better service to our customers 69 is another important connector running 15 percent year-over-year growth for 2018 in the Memphis area.” from Texas, through Memphis, to Michigan. to date, is also optimistic about the potential One concern, McDuffie noted, is the Memphis is one of only four US cities that can boast service by five of the nation’s Class I rail systems: Norfolk Southern, Burlington Northern/Santa Fe, Union Pacific/Southern Pacific, CSX, and Canadian National. Of these, four of the lines either begin or end in Memphis, enhancing its distinction as a natural distribution hub. Their combined presence makes it the third-largest rail epicenter in # the country. The net result is 48 hour-or-less access to 45 states, Canada, and Mexico. From an intermodal perspective, nine distinct railyards combine for an annual capacity exceeding 2 million lifts. Memphis ranks as the fourth-largest inland river port in the US, generating more customs duties than a number of coastal seaports. Figures for 2015 indicate the International Port of Memphis saw throughput in excess of 12 million short tons, attesting to the continuing strength of its barge business along the Mississippi River. It is the second- largest port on the shallow draft portion of the Mississippi and the largest still-water harbor on the river. Year to date, Memphis-based Dunavant is reporting robust growth: “The economy continues to show strength, and this has had a beneficial effect on our volumes,” McDuffie said. Sustained growth requires sustained investment, and he listed a number of current and proposed regional projects designed to ramp up the city’s freight throughput capacity. “In October, the Interstate 269 corridor will open to help bypass congestion by connecting I-55 to I-40. Governmental funds have been approved to widen and improve Lamar Avenue at Shelby Drive. This will help open up a thoroughfare immediately adjacent to the Burlington Northern facility and the concentration of distribution centers FIRST IN MARINE DRAYAGE there. Work on older bridges, specifically along I-55, is on the drawing boards of IMC Companies is the largest container drayage provider in the United local planners. Finally, the opening of a States. With our national scope, regional expertise, and 36 years of Norfolk Southern railhead close to Piperton, experience, we’re uniquely equipped to scale Tennessee, will improve our ability to serve logistics solutions to your needs. So if you’re the growing distribution network in that ready for a partner that will put you first, visit region,” he said. us at IMCCompanies.com. At the same time, Dunavant is investing in new facilities and talent. A recently opened terminal close to the Shelby www.joc.com October 15 2018 | The Journal of Commerce 55 SPECIAL ADVERTISING SECTION OF THE JOURNAL OF COMMERCE MEMPHIS TRADE driver shortage, which is causing a very real remaining competitive for customers,” he said, to inland port, George noted. “I believe that impact on rates. “The biggest issue is finding emphasizing the importance of creating deeper Memphis has undiscovered potential and certified, credible, dependable drivers,” he national relationships with key customers. more available resources than other cities said. Accordingly, Dunavant has fine-tuned its A hub is defined as the effective center our size.
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