Indianapolis, IN Railyards

Overview of the Intermodal Railyards

Indianapolis Rail Terminal Complex features the CSX Avon Yard, Norfolk Southern’s Hawthorne Yard, and the Indianapolis Intermodal Terminal, serving as the region’s primary freight and intermodal centers with direct connections to CSX, Norfolk Southern, and Canadian National mainlines. These terminals handle automotive, agricultural, intermodal, and bulk commodities, supporting both regional and national distribution.

The Indianapolis Intermodal Terminal, operated by CSX, offers seamless transfer between rail and truck modes, with on-dock access for containerized freight, temperature-controlled storage, and high-capacity cranes. Norfolk Southern’s adjacent Hawthorne Yard provides additional intermodal and automotive transfer capabilities, supporting rapid cargo movement across the Midwest.

Market Size and Economic Impact

Indianapolis’s rail network moves over 150,000 railcars annually and supports Indiana’s $9.6 billion logistics industry, which employs more than 110,000 people statewide. The city ranks among the top five U.S. rail hubs by volume, with direct access to 75% of the U.S. and Canadian population within a day’s drive, reinforcing its “Crossroads of America” status.

Competitive Landscape

• CSX Transportation: Avon Yard and Indianapolis Intermodal Terminal handle bulk, automotive, and containerized freight for Midwest and Southeast markets
• Norfolk Southern: Hawthorne Yard supports automotive, intermodal, and manifest freight with direct links to eastern and southern U.S. corridors
• Canadian National: Mainline access enables north-south freight flows and connects Indiana industries to Canadian and Gulf Coast markets

Opportunities

• Midwest Connectivity: Indianapolis’s central location enables rapid expansion of intermodal and regional rail services to Chicago, Louisville, and Cincinnati
• E-commerce Growth: Rising demand for distribution center capacity and last-mile logistics drives new rail-served industrial development
• Infrastructure Funding: Federal and state investments in rail modernization and grade separation projects enhance capacity and safety

Challenges

• Urban Congestion: Increasing freight and passenger volumes challenge existing yard and mainline capacity in metropolitan Indianapolis
• Aging Infrastructure: Legacy bridges, yards, and signaling require upgrades to support modern rail operations and safety standards
• Competitive Pressure: Competing Midwest hubs and highway alternatives require ongoing investment in efficiency and service reliability

Trade and Logistics Trends

• Intermodal Expansion: Steady growth in containerized freight driven by e-commerce and Midwest distribution
• Automotive Shipments: High volumes of finished vehicles and parts moving between Indiana plants and national markets
• Regional Corridors: Increased rail traffic on Chicago, Louisville, and Cincinnati routes strengthens Indianapolis’s hub role

Future Outlook

• Terminal Modernization: Planned expansions at Avon Yard and the Indianapolis Intermodal Terminal to increase throughput and reduce dwell times
• Passenger Rail Growth: Proposed new Amtrak and regional rail services to Chicago, Louisville, and Cincinnati under federal funding initiatives
• Technology Integration: Adoption of advanced yard management, automation, and safety systems to improve operational efficiency

Recommendations

• Capacity Upgrades: Prioritize mainline and yard expansions to accommodate projected freight and intermodal growth
• Public-Private Partnerships: Leverage state, federal, and private investment to accelerate infrastructure modernization
• Workforce Development: Expand training programs for rail operations, logistics, and technology to support industry growth