The Suburbanization of Transport Terminals and Freight Distribution Centers

1
The Suburbanization of Transport Terminals and
Freight Distribution Centers

• Dr. Jean-Paul Rodrigue
• Dept. of Economics Geography
• Hofstra University
• Hempstead, NY
• http//people.hofstra.edu/faculty/jean-paul_rodrig
  ue/

2
Outline

• Transport in Suburbia Assets and Liabilities
• A New Environment for Freight Distribution
• Factors in the Suburbanization of Freight
  Distribution Centers
• Future Freight Distribution

3
Transport in Suburbia Assets versus Liabilities

• Assets (Freight Transport)
• Privately owned (profit motivated).
• Relatively low entry costs (wages and rates
  subject to market forces).
• Value added function (trade distance for cost).
• Support industrial, manufacturing and commercial
  activities.

• Liabilities (Public Transit)
• Publicly owned (politically motivated).
• Little or no competition permitted (wages and
  fares regulated).
• Social function / public service (provides
  accessibility and social equity).
• Limited relationships with economic activities.

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A New Environment for Freight Distribution

• Globalization and commodification
• Macro-economic changes.
• From supply-based to demand-based logistics
• Operational changes.
• Changes in the urban spatial structure
• Spatial changes.

5
Globalization and Commodification

• Longer supply chains
• International division of the production.
• Fragmentation of production, distribution and
  consumption.
• International trade
• Imbalanced freight flows.
• Higher levels of consumption
• Debt and equity extraction.

Factor Growth (1993-2002)
Retail goods sales 61.8
Value of freight shipments 45.3
Gross Domestic Product 33.9
Ton-miles of freight 23.8
Tons of freight 18.4
Population 10.8
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From Push to Pull Logistics
Supplier
Supplier
Supplier
Supplier
Supplier
Supplier
Supplier
Supplier
Supplier
Supplier
Freight flow
Manufacturer
Manufacturer
3PL
Distributor
Distributor
Customer
Returns / Recycling
Point-of-sale data
Customer
Push
Pull
7
Changes in the Urban Spatial Structure
Multi-Nodal
Nodal
Core activities
Peripheral activities
Central activities
Central area
Major transport axis
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Factors in the Suburbanization of Freight
Distribution Centers

• Large-scale Distribution Centers
• Characteristics and requirements.
• Cross-docking Systems
• A just-in-time low/no warehousing distribution
  system.
• Freight Corridors Freight Clusters
• Servicing a system of urban agglomerations.

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Large-scale Distribution Center
Size Larger More throughput and less warehousing.
Facility One storey Separate loading and unloading bays Sorting efficiency.
Land Large lot Parking space for trucks. Space for expansion.
Accessibility Proximity to highways Constant movements (pick-up and deliveries) in small batches. Access to corridors and markets.
Market Regional / National Less than 48 hours service window.
IT Integration Sort parcels. Control movements from receiving docks to shipping docks. Management systems controlling transactions.
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Contemporary Freight Distribution Center
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Cross-docking System
Suppliers
Receiving
DC
Sorting
Shipping
Customers
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Freight Corridors Freight Clusters

• Geographical consequences
• Migrating to more affordable locations in the
  periphery.
• Growth in tons-km.
• Competition between passengers (commuters) and
  freight traffic.
• Freight corridors
• Expands the sphere of distribution.
• Providing an axis along which distribution
  centers can reliably service many locations along
  the corridor.
• Emergence of freight clusters
• Functionally unrelated distribution facilities.
• Often located in small intermediary locations.

DC
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Future Freight Distribution

• Multimodal Integration of Freight Transportation
• Problem of modal dependence (80 trucking).
• Specialization of modes, modal shift and freight
  diversion.
• Entropy and Energy
• Maintaining the cohesion and productivity of
  freight distribution.
• Growing disorder and energy costs.
• Urban/Suburban Supply Chains
• Coping with the last mile.
• Difficulties to maintain just-in-time and timely
  supply.
• High distribution costs.
• Adaptation of modes and delivery times.

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Toll Bridges and Roads, New York Metropolitan
Area (1000s of vehicles per day)
Hudson River
Long Island Sound
GWB
300
New Jersey
TNB
Bronx
110
100
LT
100
Manhattan
WSB
Garden State Parkway
125
TBB
80
100
QMT
Long Island
HT
Queens
60
BBT
20
20
75
BYB
Brooklyn
CBB
GTB
210
NJ Turnpike
VZB
20
Staten Island
MPB
Lower New York Bay
75
Raritan Bay
OCB
15
Average Hourly Traffic on George Washington
Bridge, 2002
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Truck Freight Corridors
New York
New Jersey
TZB
Connecticut
8.4
23.2
7.8
7.4
GWB
Bronx
8.6
5.2
TBB
TNB
LT
5.7
WSB
Manhattan
LGA
Long Island
QMT
HT
Queens
EWR
BBT
4.2
1.9
GTB
BYB
6.4
Brooklyn
JFK
VZB
Staten Island
8.4
1.5
Major Crossing
OCB
1,000 of Trucks per Day (2000)
2.0
4.8
About 70 million truck crossings per year