By Karen E. Thuermer, AJOTAn undisputed strength of the Port of Baltimore is its community and variety of distribution centers (DCs) and warehouses. Thanks to Baltimore’s geographic location between Washington, D.C., and Philadelphia, and its rail and highway connections to markets such as New York City, Pittsburgh, and beyond, the port offers a good location for distribution. In fact, during a recent seminar hosted by the Maryland Port Administration (MPA), Joe Greco, MPA deputy director of marketing, pointed to a number of dedicated DCs in Baltimore’s reach in Frederick County and Hagerstown, MD. Among them are Costco Wholesale Corp.’s DC in Frederick County, which serves markets in Maryland, Ohio, Pennsylvania and Virginia, and a major DC for Toys R US. Hagerstown, better known as “Hub” City, is home of one DC for Lenox, and one of four retail distribution centers for Staples. Growing Local 3PL Trade Over the years, the port has also spawned a number of warehouse and third party logistics (3PL) operators. Among them, Merchants Terminal Corporation, or MTC Logistics, plays a major role for refrigerated products. The company, which offers warehousing and full logistics management, handles both imported and exported refrigerated cargo. These include seafood from China and Chile and exported U.S. poultry. The company’s location less than one mile from Seagirt Marine Terminal gives it a competitive advantage, especially since MTC Logistics offers less-than-truckload (LTL) and local drayage. This means customers can shorten their logistics supply chain given that U.S. Department of Agriculture (USDA) inspection services and outbound consolidated transportation services are all within a stone’s throw of the port. “We can turn containers faster, which reduces exposure to demurrage,” says Brooks Royster, MTC Logistics vice president. “To the shipper or consignee, this also reduces inland transportation costs such as trucking, and allows for, depending on the terms of booking, reduced ocean freight.” In August 2009, the company opened a new warehouse, which uses 48 percent less energy per cubic foot than the warehouse it replaced. Royster describes it as having 100,000 square feet of solar panels on its roof, thereby allowing the facility reduced electrical consumption off grid. In addition, the loading docks that receive refrigerated trucks are designed to allow the trailers to be backed in before opening the truck doors, thereby maintaining the integrity of the cold chain by ensuring security and wholesomeness throughout the loading or unloading process. “Consequently, we are able to offer competitive rates to our customers,” he adds. “And, because of our proximity to Seagirt, we can offer reduced local trucking costs.” Royster reveals that this year the company is seeing more imports in general and a growth of exports in reefer products. He attributes this to the weak U.S. dollar making U.S. products competitive. “Services the Port of Baltimore offers to shippers and consignees also have a huge impact,” he adds. For one, he explains, there is little congestion at Seagirt. “Shippers and consignees can get access to containers faster and cheaper,” he says. For now, everything is trucked, although shipments can be drayed to a rail facility. Royster adds that CSX’s commitment to expand its National Gateway project (see related story on page 2) will have a big impact on MTC Logistics. “Our breadbasket is the Midwest,” he remarks. “That’s predominately where our imported refrigerated cargos go. Having enhanced CSX capabilities will impact us a lot.” Also having an impact on business is MTC’s February announcement of its joint venture partnership with Great Lakes Cold Logistics, an asset based trucking company affiliated with Great Lakes Cold Storage. Great Lakes Cold Logistics owns and operates 40 some tractors and 55 refrigerated trailers. With this partnership, MTC’s transportation division now becomes a Wal-Mart Authorize