Market Demand for and Impacts of Queensgate Terminals

Containerized trade is an established form of cargo shipment, both domestically and internationally. This method of shipping of goods and commodities is also a growing form of freight transportation as a result of the economic and operational efficiencies of containerized shipping. There is a growing demand for the kinds of goods and commodities that are appropriate for container shipping. In addition, there is a growing supply of commodities suitable for containerization in the region, as well as a ready supply of empty containers. Large infrastructure investments are currently being made nationally and internationally to accommodate even greater flow of goods in containers. National transportation policy – seeking to address projections of rail and highway congestion and gridlock within the next 20 years from the increasing shipments of freight – seeks to move more freight to the nation’s river ways.

Cincinnati is uniquely positioned to take advantage of these trends. Cincinnati’s early growth was driven by an advantageous location on the Ohio River and the flow of agricultural goods from the fertile farmland of central Ohio and Indiana to the river for transportation to the rest of the world. That location today makes the port of Cincinnati the fifth largest inland port in the Country. Those same historic advantages to Cincinnati’s location gives it the ability to take advantage of the large and growing flow of containerized traffic in this country – particularly containerized shipment of agricultural products.

At present, there are no port facilities in Cincinnati along the Ohio River that are equipped to handle containers, which necessarily means that containers moving into and out of the region must be carried via truck and rail. The proposed Queensgate facility would be the first terminal equipped to provide the infrastructure to transport containers through the Greater Cincinnati Region, and beyond. By providing the ability to move containerized traffic directly from rail onto barge, the facility would increase the flow of goods in and through the port of Cincinnati while, at the same time, reducing truck traffic in and through Cincinnati, which in turn would reduce congestion, pollution and deterioration of the region’s roads and highways.

Designed and developed as a “green” port, the operation could offer additional environmental benefits to the City. Among these additional environmental benefits, the proposed facility in particular is expected to result in

• a reduction of truck traffic
• easing of vehicle congestion
• a reduction in fuel consumption and emissions

Also, with trans-shipment of containers between barge and rail, there would be no extensive on-site storage or warehousing nor any mixing or processing of chemicals at the site, in contrast to most current riverfront port facilities.

Our research indicates there is a large and expanding market for the facility proposed to be built at the Queensgate site. Once built, it will have a positive economic impact on the Greater Cincinnati region – in terms of both dollars and new jobs. Over its first five years of operations, the data projects a direct economic impact of its operations of $48 million. Our analysis indicates that the total economic impact, a combination of direct, indirect and induced effects, to the Greater Cincinnati area of the first five years of operation includes

• the creation of $105 million in total economic activity.
• nearly $25 million in total household earnings
• about a total 140 new jobs
• about a total $7 million in tariff revenues for the City

The Queensgate project has the potential to technologically advance the long tradition of port activity in the community. The project meets national and regional transportation priorities for the new century. The project is expected to bring new jobs to the City of Cincinnati and generate economic value above and beyond its own operations. Additionally, the proposed facility is expected to reduce congestion on the highways, pollution in the air, and the carbon footprint of the community.