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Expanding ag trade and creating more container shipping opportunities is the goal behind the Memorandum of Understanding (MOU) that has been signed recently between the Indiana State Department of Agriculture (ISDA) and the Ports of Indiana.
“We have three ports in Indiana—and sometimes that’s surprising to others considering our geography—but the one thing we don’t have is a container loading system and building that will help us with shipping our ag products,” says Don Lamb, Director of ISDA.
He says the critical part of the agreement is that both ISDA and Ports of Indiana are looking to develop new container loading and shipping facilities.
“The key to us sending out products [here in Indiana] is our ability to bring in products as well, because it doesn’t work unless it’s a two-way system,” says Lamb.
“When you say we’re going to do that, we’re going to have to bring in products from other countries in a containerized environment. What we also need to have is border control and security to make sure what we’re bringing in is safe. So, there’s a lot more to it than just being able to send things out. It’s a little bit more of a complicated process than one might think, but it’s super important and I think it’s going to be a great step for Indiana farmers,” he says.
Once those new container shipping facilities are up and running, Lamb says it will be that much easier to make those ag trade agreements directly with international buyers—which in turn, will increase the value of the ag products that are grown, raised, and produced in Indiana.
“Indiana is the seventh largest ag export state in the country. When you consider we’re the 38th largest in terms of our size, I think that’s a great testament to our farmers, says Lamb.
“I’ve also learned that trade is a contact sport. You cannot make international trade arrangements without making those one-on-one personal connections. That’s why our team at ISDA and state ag leaders have done so much traveling—and we’re going to continue to do that because when you make those personal connections and meet your trade partners in person, that’s really what allows trade to happen, so we’re going to keep building and building on that success,” he says.
Each year, four million tons of ag products are shipped out among Indiana’s three ports located on the Ohio River and Lake Michigan. Overall, Indiana ranks 13th in the nation for waterborne shipping, generating $29.9 billion in annual economic impact.
In addition, the Ports of Indiana received federal approval to create Indiana’s first international sea cargo terminal on Lake Michigan. This was part of an agreement with the Belgium government to create a direct shipping pipeline between Ports of Indiana and Europe’s second largest port. Port of Antwerp-Bruges.
CLICK HERE to view the Memorandum of Understanding (MOU) between ISDA and the Ports of Indiana.