TRANSPORTATION & LOGISTICS: Ports play a key role in moving wisconsin’s economy

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When you think about transportation in Wisconsin, roads and rails might jump to mind. But the state’s 20 commercial ports more than carry their weight in the transportation economy, moving over $7 billion worth of goods annually.

With everything from salt and coal to key supplies for manufacturing such as iron and steel, the state’s commercial ports are a key entry point in keeping Wisconsin’s economy humming. The ports also create jobs. The Port of Milwaukee alone created 1,416 direct and indirect jobs in 2011, as reported by Martin Associates in its most recent study of the Port of Milwaukee’s economic impact.

“We’re the largest and deepest port in the state. For manufacturers and other businesses, we are able to provide them with the raw materials they need, cheaper. Logistically, we make sense,” said Paul Vornholt, the acting director for the Port of Milwaukee.

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Wisconsin is fortunate to have a truly diverse, intermodal commercial transportation industry. According to the Wisconsin Transportation Development Association, the state’s 12 servicing railroads carry 190 million tons of cargo, and the 133 public-use airports transport 116 million pounds of cargo. The state’s 110,000 miles of interstate, state, and local roads move about 75 percent of the state’s commercial output, with several large trucking firms, including Schneider National and Roadrunner, calling Wisconsin home.

“We make a lot of stuff in Wisconsin and there are a lot of ways to move it. Over-the-road remains the top choice,” said Jim Weatherly, owner of Global Freight Source, a web-based transportation management services firm in Milwaukee.

Ports give Wisconsin a competitive edge

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But the state’s ports also play an important role. In addition to the Port of Milwaukee, other key ports include the Port of the La Crosse, on the Mississippi River; the Port of Green Bay; and the Port of Duluth-Superior, the largest harbor on the Great Lakes.

Dean Haen, Port and Resource Recovery director for Brown County, said the Port of Green Bay plays a critical role in the local economy.

“The Green Bay area is fortunate to have a port, since it provides an additional mode of transportation that not every community has,” said Haen, adding that Georgia-Pacific, for example, operates its own terminal where it can receive coal or other large items directly from ships rather than receiving it over-the-road or via rail.

At the Port of Milwaukee, salt, coal, concrete and steel are the biggest commodities. In 2013, the Port saw a 30 percent increase in tonnage, which Vornholt attributed to not only a growing economy but also the need for more salt. “We had never-ending winters both last year and this year,” he said.
The Port of Green Bay also grew in 2013. More than 2.2 million metric tons of cargo came in last year – an increase of 16 percent over 2012. Coal and limestone, which are used heavily by manufacturers, increased 21 percent, while salt deliveries were up 35 percent.

 “We can offer businesses a competitive edge when it comes to transportation needs that other cities can’t because of the Port,” Haen said. “I’m confident the Port will remain a valuable resource because it can meet today’s market demands and has potential to draw new business to the area.”

The Port of Milwaukee is the northern-most point on Lake Michigan where barges can reach the Mississippi River and then New Orleans and the Gulf of Mexico. “That’s an advantage for us, although overall in terms of the Great Lakes, our port is on the smaller side,” Vornholt said. “We are able to bring in lakers and ocean-going ships, which is another advantage.”

Shipping ideal for low value, high bulk cargo

Milwaukee, like its sister ports, does more than just welcome in ships. It also provides over 330,000-square-feet of covered warehouse space for bulk, steel and general cargoes, including 30,000-square-feet of heated space.
At the ports, goods are stored in warehouses, then put on trains or trucks and taken to their next location. Haen said shipping by sea make a lot of sense for large, heavy items that have a lower value – such as coal or salt.
As for exports, there’s definitely more coming in than going out. The Port of Milwaukee does handle some exporting for CNH of its large equipment, but for the most part Haen said Wisconsin companies make high-value items they want to move quickly to market, and going by ship takes longer than going over the road or rails.

“We do some exporting,” said Haen. “But it’s only about 10 percent of the volume – the vast majority of movement in the port is products coming in.”

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