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The Suburbanization of Transport Terminals and Freight Distribution Centers

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_rodrigue/. Outline. Transport in Suburbia: Assets and Liabilities

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The Suburbanization of Transport Terminals and Freight Distribution Centers

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  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_rodrigue/

  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. 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. Transport in Suburbia: Assets versus Liabilities

  4. 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.

  6. 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 area Central activities Major transport axis

  8. 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.

  9. Large-scale Distribution Center

  10. Contemporary Freight Distribution Center

  11. Cross-docking System Suppliers Receiving DC Sorting Shipping Customers

  12. 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

  13. 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.

  14. 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 TBB 125 80 100 QMT Long Island HT Queens 60 BBT 20 20 75 BYB CBB Brooklyn 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

  16. 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) 4.8 2.0 About 70 million truck crossings per year

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