Ports Of Indiana Opens Bonded Facility At Mount Vernon
With only six weeks of development, Ports of Indiana has opened a new federally approved bonded storage facility at its Mount Vernon port, enabling it to handle its first barge shipment of aluminum.
The new facility was developed to meet urgent customer demand and marks a major expansion of the port’s capabilities, according to a news release. Ports of Indiana said it positions Mount Vernon as a competitive hub for duty-deferred storage of high-value commodities.
The first shipment, approximately 1,650 tons of aluminum, arrived March 24 after traveling from Asia to New Orleans and then by barge to Indiana. It will be distributed to Midwest manufacturers for use in a wide range of applications, including automotive, construction and packaging materials.
The Mount Vernon bonded facility is designed to support industries handling high-value or high-tariff goods, including metals, automotive, energy, electronics, pharmaceuticals and food and beverage products, according to the port.
“Opening a federally approved bonded facility within six weeks after a customer inquiry is unheard of in our world and a tremendous accomplishment,” said Jody Peacock, CEO of Ports of Indiana. “The collaboration and efficiency of our port team, our terminal operator and U.S. Customs is creating real-time supply-chain solutions and competitive advantages for our customers.”
Bonded storage areas are secure, government-authorized facilities where imported goods can be stored without immediate payment of duties or taxes. This allows businesses to defer those costs for up to five years, improving cash flow and enabling more flexible supply chain strategies. The Mount Vernon bonded facility includes both indoor and outdoor storage, featuring a 20,000-square-foot warehouse and one-acre storage yard. To meet federal requirements, Ports of Indiana installed approximately 800 feet of fencing, security cameras, access controls and an aggregate laydown yard.
The facility is operated by Indiana River & Rail Terminals, which partners with Ports of Indiana to operate terminals in Mount Vernon and Jeffersonville.
“Through our partnership with Ports of Indiana, we’ve created new opportunities for growth and expanded our ability to serve customers,” said Jonathan Lamb, CEO of Indiana River & Rail Terminals. “This facility opens the door to new cargoes in metals, energy and technology sectors, and we see strong potential for continued expansion.”
The bonded designation takes advantage of Indiana’s absence of a state inventory tax, allowing companies to defer both federal duties and state-level carrying costs until goods leave the facility.
“This new facility creates a long-term competitive advantage for our customers and our community,” said Jason May, port director at Mount Vernon. “It builds on our strengths in cargo handling, multimodal transportation and Indiana’s pro-business environment. We’re excited to attract new industries and cargoes that don’t traditionally use our ports.”
Mount Vernon’s capabilities support handling and distribution of bulk and breakbulk cargoes, including the use of a 60-ton overhead crane to transload shipments from barge to truck or rail, Ports of Indiana stated. The port offers access to five Class I railroads, 10 barge berths, fleeting capacity for more than 400 barges and 600 acres available for development.
Featured image caption: The first barge shipment of aluminum arrives at Ports of Indiana-Mount Vernon on March 24. Following a customer’s urgent request, the port developed a federally bonded facility within six weeks, establishing a secure area that includes a 20,000-square-foot warehouse and one-acre aggregate laydown yard. (Photo courtesy of Ports of Indiana)
