The impact of a modulized transportation system on the optimal structure of the Oklahoma cotton industry is analyzed in this study. A mixed integer transshipment model which minimizes total assembly, transport, processing, and distribution costs from farm to gin to warehouse to domestic or export demand locations is used to determine the optimal number, size, and type of gins. The most efficient system of assembling, ginning, warehousing, and transporting cotton in Oklahoma would involve 10 gins and would imply a total systems cost approximately 15% lower than the current structure. The results also indicated that continued adoption of module transportation systems will have little additional impact on the optimal gin industry structure or total ginning system costs.