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Dry ports, what are they and how do they work?

11 April, 2025

When we imagine a port, the image usually has at least two crucial elements – some sort of body of water and a ship. However, not all ports are located on the coastline. Logistics specialist often use the notion "dry ports", which may seem paradoxical at first—how can a port be "dry"?

In fact, it can, let’s break it down.
A dry port is an inland terminal that functions much like a seaport, but instead of being located by the coast, it is situated some distance away from it. It acts as a hub for the transshipment of cargo between land and sea, serving as an intermediary point where goods are transferred between various transportation modes—typically from trains to trucks or vice versa.

While dry ports are landlocked, they connect to seaports via an established network of road or rail routes. These ports provide similar services to traditional seaports, such as cargo handling, storage, and customs clearance. 

The concept of a dry port brings a variety of benefits to the global logistics and shipping industry. These include:
  • Decreased congestion at seaports
    Seaports, especially those handling large volumes of cargo, can become congested, leading to delays and inefficiencies. Dry ports help alleviate this congestion by taking some of the pressure off coastal terminals. This helps streamline the overall logistics process and reduces waiting times.
  • Cost-effective transportation
    Dry ports provide more affordable alternatives for inland transportation. Rail transport, for example, is often cheaper than direct truck transport, making the cost of moving goods inland more economical. This can be especially beneficial for landlocked countries or regions with limited access to seaports.
  • Efficient logistics and distribution
    Inland ports play a key role in the distribution of goods across larger regions. They act as important hubs for regional distribution networks, allowing goods to be stored, sorted, and forwarded to their final destinations in an organized and efficient manner.
  • Trade facilitation in landlocked regions
    Dry ports are vital for landlocked countries, providing them with the necessary infrastructure to access global trade routes. By establishing dry ports near major transportation corridors, these countries can bypass the need for direct access to coastal seaports.
Besides from the above-mentioned benefits of these ports, it is possible to repair or reinforce the freight as well as reduce the cost of rail transportation charges, when using dry terminals for import.
Examples of dry ports
  • India
    India has established multiple dry ports as part of its efforts to improve its trade infrastructure. These inland terminals have helped reduce congestion at coastal ports like Mumbai and Chennai. The dry port at Nagpur, for instance, connects to the Jawaharlal Nehru Port, providing greater efficiency in handling cargo.
  • China
    China’s "Belt and Road Initiative" has led to the creation of several dry ports across Asia and Europe. These dry ports facilitate the seamless movement of goods from the country’s inland areas to its coastal ports, and vice versa.
  • Germany
    The city of Duisburg in Germany is home to one of the largest inland dry ports in Europe. Situated along the Rhine River, Duisburg acts as a major logistics hub, connecting to the ports of Rotterdam and Antwerp. This dry port helps handle containerized goods traveling by rail across Europe.
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