A Short List of Top Logistics Locations
Which locations are ready to handle your next logistics facility?
LDW: Logistics, Distribution & Warehousing 2009
Of course, as with any ranked list, it is important to note that each and every location decision is unique and reflects the specific requirements of a company as it works to meet the needs of its customer base efficiently. Hence, there are a lot of good locations that will not appear below that will serve as excellent bases of operations for some companies. Likewise, the locations below will not work for every company's need.
No specific weighting and ranking has been used to develop these lists. While tempting, such a concept would provide a false ranking for the reasons cited above. As a result, these lists are - to some degree
Reinvestment in the legacy freight hubs of the United States has gained steam over the past couple of years. In general, the above locations provide access to the largest and/or most rapidly growing consumer bases in the Unites States. All have very strong multimodal connections, and what had been the historic mega rail hubs of Chicago, Memphis, Atlanta, and Dallas from decades past have all experienced new growth in trucking and air, and have seen dramatic new re-investment in rail. This growth has been particularly strong in the Southeast, where investments in new manufacturing facilities, port expansion, and rapid population growth have converged to drive a major need for investment in the distribution network. This is particularly relevant to the regions around Atlanta, Central Florida, and North Carolina. Southern California continues to experience dramatic growth through the repackaging and distribution of goods entering from the Pacific Rim. Other areas such as Eastern Pennsylvania and Northwest Virginia serve as alternate, lower-cost distribution locations to the heavily populated Northeast, while trying to avoid some of the congestion along the I-95 corridor.
Port capacity in the United States is strained, with large investments along both coasts attempting to compensate for limited capacity and increasing regulation at traditional U.S. ports. Los Angeles capacity issues and environmental regulations have spurred growth in both Mexico and Canada as a means to satisfy the need for imported goods from Asia. Also gaining - as a result of Pacific trade seeking easier routes to large U.S. markets - are the new ports of Lazaro Cardenas and Guaymas in Mexico and Prince Rupert in British Columbia. All have direct links to less-congested Class I rail mainlines. Lazaro Cardenas will expect up to 700k TEU per year in Phase I, expandable to 2.0m. Guaymas will be built to a 850k TEU capacity.
Certainly Los Angeles/Long Beach and New York/New Jersey have - and will continue to have -
a very large share of overall port-related activity, but Norfolk, Savannah, and Charleston have experienced and will continue to gain significant growth in the near term due to the size constraints in the Panama Canal. Other facilities such as Melford in Nova Scotia may soon join this list once they become fully operational.
Port-related intermodal facilities create an interesting challenge in that they require new and innovative approaches to utilize limited property available along the waterfront. In the case of most legacy port cities, investigation into agile port systems and other initiatives have become more numerous as the country copes with its current capacity issues. In addition to better utilizing space, ports have also started to become increasingly conscious of the environment. This is most relevant in the ports of Los Angeles and Long Beach, where strict environmental regulations are scheduled to take effect in the coming months and years, with limits on the types of fuel and number of trucks into and out of the port among some of the more stringent guidelines.
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