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What are the Advantages of a Dry Port?

by Samantha Greene / Sep 4, 2023 / 5m

The majority of items in global trade are carried by water. More than 80% of cargo volume is transported by water, which accounts for more than 70% of cargo value. Tens of thousands of seaports are placed across the world, but as international trade and logistics have developed, dry ports have also been actively created.

What Is A Dry Port?

A dry port is a multifunctional logistics center with a developed infrastructure that allows the owner of the cargo to enjoy all the advantages of a seaport on land. On the basis of one center, it is possible to receive the whole range of cargo handling services. Thus, the delivery time of the cargo to the end points is reduced.


Why do we need Dry Ports?

Dry ports were created specifically to facilitate the work of seaports. Due to the constantly growing volumes of world trade, some of them struggle to cope with their direct tasks. Furthermore, port staff are responsible for cargo selection and temporary storage, and this has an impact on the seaport's production and throughput. This responsibility is assumed by a dry port located near a seaport. The relevance of dry ports stems from their ability to improve the efficiency of the whole supply chain.

In dry ports, cargo is accumulated for shipment, reloaded onto other modes of transport, customs procedures and transport documents are carried out, containers are stored and repaired, and refrigerators are connected to the power supply. In the area of dry ports, service centers may be provided for the repair of vehicles transporting goods.

The concept of dry ports is becoming more popular in global logistics, but it also has both positive and negative sides.

Top Benefits Of Dry Ports

Logistics Efficiency

One of the advantages of dry ports is that they allow optimization of logistics processes, reducing the time spent waiting and handling cargo in seaports. They may be more affordable in some regions, improving competitiveness.

Profitability

Dry ports can positively affect the profitability of the country as a whole. By calculating and building the exact number of necessary objects in strategically important places, the costs in the transport sector as a whole will decrease.

Increase In Cargo Flows

The presence of dry ports in the region attracts new cargo flows and boosts the economic effect of increasing the volume of transit cargo transportation, and the carrier reduces the idle time of wagons waiting for reloading as well as the turnaround time of an empty container. Dry ports also assist in solving the issues of employment creation and tax income generation. Furthermore, the population's commodity supply is assured to be reliable.

Port Expansion

Dry ports allow the port's influence to expand to nearby regions, even if they are far from the seacoast. This contributes to the development of a wider network of transport links.

Time Saving

Cargo can be unloaded and shipped as soon as it arrives at the dry port, reducing transshipment time and allowing faster delivery of goods to the final consumer.

Disadvantages Of Dry Ports

Infrastructure Costs

Establishing dry ports requires significant investment in infrastructure such as roads, railways, warehouses, and equipment. Due to the geographical features, the construction process of dry ports requires large investments, including for timely digitalization and restructuring of the low-capacity infrastructure of port railway stations. The consignee also loses money by taking the goods not from the port but from the terminal, as he is forced to cover the cost of transportation. This may be a barrier to the implementation of the concept in some regions.

Cargo Constraints

Dry ports can be limited in the type of cargo they can handle, especially if specialized equipment or storage conditions are required.

Complexity Of Organisation

The management of dry ports requires close coordination between different means of transport, customs services, and other structures. This may require additional effort to ensure efficient operation.

Environmental Issues

Long-distance transportation can lead to additional carbon emissions and increased fuel consumption, which can negatively impact the environment.


Dry Port Implementation

On the one hand, a dry port should not be isolated from the harbor and on the other, from warehouses. It should be situated at the crossroads of the major logistical routes. At the same time, dry ports should be connected to other dry ports, border points, checkpoints, seaports, inland waterway terminals, and airports via transportation. It is also critical that the dry port be sufficiently adaptable, i.e. capable of providing a comprehensive variety of services for processing diverse sorts of cargo.

Types Of Dry Ports

The division of terminals is not rigid, meaning that some areas of the port can be united by several functions.

Transport And Logistics Centers

Such places serve as an important link for reloading goods from sea to land transport. This type of ports is characterized by a developed infrastructure for the storage, handling, and transshipment of containers.

Industrial Dry Ports

This type is intended for use in a specific industry. They can provide processing, assembly, and distribution services.

Distribution Centres

The task of such places is to distribute goods within a country or region. They are often located near large settlements and transportation hubs.

Final Say

A dry port is a significant player in the transportation process, with several roles such as shifting freight flow to different means of transport and lowering cargo delivery costs. Dry ports have the ability to dramatically increase the efficiency of transportation and logistical operations. It offers economic benefits by redirecting freight from inefficient to efficient transportation networks. However, their implementation necessitates a comprehensive examination of the benefits and drawbacks, as well as consideration of the particular location.

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