The role of airport proximity on warehouse location and associated truck trips: Evidence from Toronto,Ontario

This paper examines the two-way relationship between land use and transportation from the perspective of warehouses in the Toronto Census Metropolitan Area. A location choice model is first developed to reproduce the decision process of firms selecting suitable locations to operate warehousing facilities. The results highlight that transportation plays a prominent role in the location of warehouses with proximity to airport, highway infrastructure, and rail to a lesser extent. However, the proportion of industrial land use provides the largest role in the model suggesting that available land and zoning is the most important factor. This paper also studies the impact of warehouse location on freight transportation trips. The resulting analysis highlights that GPS derived trips arising from warehouses near a major airport in Toronto tend to travel 1.8 times further than trips pertaining to other warehouses in the region. This suggests that trips related to the airport are more likely to be connected to a larger supply chain process.     

From a hub port city to a global supply chain management center: a case study of Hong Kong

This paper explores the critical challenges encountered in the transformation process of Hong Kong from a freight transport hub city to a knowledge-based global supply chain management center (GSCMC). The exploration involves an examination of the structural issues of the logistics industry in Hong Kong within the framework of global value chains (GVC). A questionnaire survey and a series of interviews were conducted to reveal the essential problems that the key parties of the Hong Kong logistics industry face if the transition of Hong Kong into a GSCMC is to be successful in all segments of the industry. Through a categorical analysis of logistics segments, the hurdles to the GSCMC as well as the institutional measures are also discussed in this paper.     

Factors influencing cargo airlines’ choice of airport: An international survey

This paper identifies and evaluates the myriad of factors that influence the choice of airport by freighter-operating airlines. The findings are presented from an international postal survey of airlines operating freighter aircraft on a scheduled non-integrated basis. A number of factors such as night curfews, freight forwarders and airport charges are found to be influential and these are examined against a number of dependent variables such as the airline's home region and operational patterns in order to identify key variations.     

The geography of warehouses in the São Paulo Metropolitan Region and contributing factors to this spatial distribution

This paper aims to characterize the relocation of warehouses in the São Paulo Metropolitan Region (SPMR) considering the spatial structure of changes in warehouse locations. We also discuss the potential factors that could attract warehouses to their location, especially in peripheral regions. The study encompasses the period between 1992 and 2017 and analyzes the influence of geographical, economics, road infrastructure, municipality service tax rate, cargo theft, and real estate prices on logistics facility location. The results show no evidence of logistics sprawl in SPMR during the studied period, although a small sprawl appeared between 2010 and 2017, moving the barycenter to the Northwestern direction of the SPMR. The main factors that influence the decision to move the warehouses are the low cost of land, lower tax, and a well-served infrastructure with highway intersections. There is a positive spatial correlation between warehouse per capita and cargo theft.     

Analysing passenger network changes: The case of Hong Kong

Passenger throughput at Hong Kong International Airport (HKIA) has shown steady growth since its opening. Various aspects relating to HKIA have been studied in prior literature. This paper investigated changes in HKIA's passenger network for the period of 2001–2012 and used the gravity model to examine the key factors explaining its passenger traffic flows. The findings suggested that HKIA's passenger network has changed significantly and expanded to many new different destinations. Two regions (East Asia and Southeast Asia) were the most important markets for HKIA, and most key destinations connected by Hong Kong showed healthy growth. Nine factors could explain passenger traffic flows between Hong Kong and its key destinations: Hong Kong GDP per capita, GDP per capita of destinations connected by HKIA, distance, airport hub status of the destination airport, tourist destinations connected by HKIA, numbers of passenger airlines in service, bilateral trade flows, speaking a common language and having strong cultural/colonial links with Hong Kong, and the route presence of Cathay Pacific.     

Port choice and freight forwarders

In light of the growing supply chain power of 3PLs and very limited empirical studies on port choice from the freight forwarders’ perspective, this paper tries to evaluate the major factors influencing port choice from the Southeast Asian freight forwarders’ perspective, their decision-making style and port selection process and draw out some policy implications for port operators and authorities. Efficiency is found to be the most important factor followed by shipping frequency, adequate infrastructure and location. Their selection process is complex and a two-stage process and supports the new approach that models ports within the framework of a supply chain.     

The potential of horizontal collaboration in airport ground freight services

Since the global economic crisis of 2007–2011, the increasingly dynamic and challenging air cargo market in Europe has forced freight forwarders to improve their performance. In addition to improving their internal transport efficiency, they have also started to look at previously unexplored opportunities for horizontal collaboration in landside airport transport. The aim of this study is to reveal the potential of air cargo transport collaboration on a horizontal level, i.e. between multiple freight forwarders within a single airport. Reviewing existing literature on horizontal collaboration, with a focus on the air cargo industry, we propose a conceptual framework for transport collaboration in the air cargo industry. Based on a comprehensive study on air cargo transport movements within Schiphol, using a simulation model based on company data of 10,747 shipments (6977 tons of cargo) for a period of 30 days, we find several interesting results. Our main finding is that horizontal collaboration can improve the transport performance, by maintaining a high frequency of transport movements and maintaining an acceptable throughput time for air cargo shipments, and at the same time reduce transport costs by up to 40%. For smaller freight forwarders, the frequency of transport deliveries can even increase, while still allowing them to improve the average load factor of transport movements.     

Strategic development trend and key factors analysis of Airport City in Taiwan

In the past decade, many airports have shifted from being simple transfer ports to logistical transportation hubs and, more recently, into multi-functional airport cities. The emergence of the airport city provides evidence of advanced transportation development of a country or a region, as it serves as the impetus for national industry and a gateway to economic globalization. This paper explores the development trend of airport cities in Hong Kong, South Korea, Singapore as a basis for analysis of outcomes in Taiwan. Using grounded theory-based qualitative research, this study analyses and conceptualizes thirty key factors and seven trends for airport-city development via interviews with focus groups and experts. These development trends are verified by a contingency analysis with airport cities development intelligence. In addition, this study conducts an industrial matrix analysis and verb-term coding to propose action items for industrial categories in the case of Taiwan Taoyuan international airport.     

Hong Kong’s low car dependence: lessons and prospects

Reducing car dependency, and hence traffic, have become key transport objectives of many cities and countries. Despite relatively high levels of wealth, Hong Kong has never become a car-dependent location. Using results of a survey of 340 young Hong Kong people and five focus group discussions, this paper argues that there are lessons to be learned from Hong Kong, and that transport policies, rather than population density, are mainly responsible for the low levels of car ownership and use. It also shows, however, that without even stricter policies, car ownership and use could increase substantially in the future.     

The effects of deregulation, changed customer requirements and new technology on the organisation and spatial patterns of the air freight sector in Europe

Customer requirements, new technologies and the deregulation and liberalisation measures of the last 15 years have had a significant influence on market structures in air freight transport in Europe. The study examines the sector using the concept of global production networks. It describes the reorganisation in various dimensions. Firstly, there is the development from single air freight forwarders to global networks of firms. Secondly, we find a reorganisation of inter-company relations. Thirdly, airlines around the world organise their air traffic as a hub system. This lends added importance to the selected hub airport, and puts pressure on them to enlarge. As spatial consequences there is greater competition among international airports.     

Why do warehouses decentralize more in certain metropolitan areas?

Over the last decade, warehousing and distribution centers have decentralized to the urban peripheries where land is cheaper and readily available. This change in location patterns has been driven by the demand to build more modernized and larger facilities to accommodate an ever-increasing influx of freight. Since efficient freight movement is essential for the smooth functioning of metropolitan areas, decentralization should occur everywhere. However, this is not necessarily true. It is hypothesized that depending on the volume of goods movement and the spatial distribution of land prices, the extent of decentralization varies across metropolitan areas. This hypothesis is tested using 48 US metropolitan areas. Results provide robust evidence that high land prices push large warehouses away from central locations. When freight demand and land prices are not as high, the effect becomes insignificant. Indeed, not only is decentralization linked with large metro areas but also with very large warehouses.     

城市交通发展对铁路货运站布局影响的研究

城市区域结构和产业布局的调整、城市规划理念的变化,使铁路货运站的位置需重新确定。城市轨道交通形成网络后,市内运输能力大大提高,铁路枢纽所有为城市服务的设备和设施均可移出市区,城市内的货物运输可由城市轨道交通系统利用凌晨时段完成。为此,提出了铁路枢纽内货运站设置的数量、位置,以及城市内货运集散点位置的确定方法。     

Wayfinding in the passenger terminal of Hong Kong International Airport

One of the important features of airport passenger terminal layout is passenger orientation (wayfinding). Many people have difficulty in locating their desired destination within an airport despite the availability of information signs. This paper describes the use of a quantitative measure, or visibility index, to evaluate the ease of orientation in the departure lounge of Hong Kong International Airport. Based on the visibility index, a new set of level-of-service standards for orientation is proposed. The findings of this paper are compared with those of previous studies.     

Cooperation through capacity sharing between competing forwarders

In this paper, we consider a shipping system consisting of one carrier and two shipping forwarders who compete on price for businesses from potential shippers. The carrier may quote different prices or a single price to the two shipping forwarders who will then order shipping capacity from the carrier and set the selling prices to the shippers before market uncertainties are revealed. Inspired by cooperation between competing parties in many industries including the maritime shipping industry, we propose a new model under which the shipping forwarders are allowed an opportunity to purchase shipping capacity from each other after they order capacity from the carrier but before they set the selling prices and satisfy demand, referred to as the capacity reservation model. We show analytically that capacity reservation between competing forwarders benefits both the carrier and the forwarders, leading to a win–win situation under various market conditions. Furthermore, capacity reservation can offset the negative effect of a carrier’s pricing power which enables the carrier to charge discriminatory shipping prices to squeeze more profits out of the forwarders.     

Warehouse location choice: A case study in Los Angeles,CA

The purpose of this research is to understand how and why warehouses have changed location over time from central urban areas to the urban periphery: spatial decentralization. Over the last decade, the logistics industry has been restructured to transport large volumes of goods more quickly and reliably. Concurrently, the warehousing industry experienced changes in facility size and location: large warehouses have been built on the urban outskirts. This spatial shift is attributed to inventory and transport cost trade-offs: the gains from lower land prices and scale operation outweigh the increase in transport costs as warehouses decentralized from central urban areas. As a case study, I examine location choices of 5364 warehousing facilities in Los Angeles, CA. I hypothesize that (a) the location choice varies by facility size and (b) the location choice logic has changed over time. Results suggest significant differences in the effect of location choice factors over facility size and over time. For warehouses built before 1980, the most influential factors are local market, labor, and seaport/intermodal terminal proximity. In contrast, for warehouses built after 2000, lower land price and airport/intermodal terminal proximity have the greatest effects.     

Measuring aeronautical service efficiency and commercial service efficiency of East Asia airport companies: An application of Network Data Envelopment Analysis

Improving operation efficiency has become an important development strategy for many airport companies. However, there is little research on these companies' operating process decomposition or discussing the causes of inefficiency in sub-processes. This study evaluates the overall efficiency and the operational efficiencies of aeronautical service sub-process and commercial service sub-process for 10 East Asia airport companies from 2009 to 2013 using Network Data Envelopment Analysis (NDEA) and identifies the key influencing factors of respective sub-processes efficiency by employing the Panel Data model. The first-stage NDEA results indicate that only Airport Authority Hong Kong in 2012 and 2013 performed efficiently in both sub-processes and achieved overall efficiency. The overall efficiencies of all other companies are not high. During the entire study period, in aeronautical service sub-process, Beijing Capital International Airport Co., Ltd. and Shanghai International Airport Co., Ltd. performed efficiently, while in commercial service sub-process, only Hong Kong airport performed efficiently. The second-stage regression analysis implies the number of airlines served and the number of destinations have significant and positive influences on the efficiency of aeronautical service. Non-aeronautical revenues and service quality have significant and positive influences on commercial service efficiency.     

Measuring connectivity in the air freight industry

In this paper, we present an air transport connectivity model for air freight. For the purposes of this paper, connectivity is defined as all possible direct and indirect connections to or from an airport operated by wide-body aircraft, weighted for the quality of the connection in terms of transhipment and in-flight times. Using this model, we analyse the networks of seven European airports. Europe’s largest hub airports carry most air freight thanks to their extensive intercontinental passenger networks, while smaller airports with a strong focus on air freight carry large amounts of cargo on dedicated freighter aircraft. For air freight operations, the catchment area of an airport is much larger than it is for passenger services, as shipments are being trucked to their departure airport throughout all of mainland Europe. Since there are many airports sharing the same catchment area, potential competition for air freight is fierce. We found that well located regions between the four large European airports have access to large air freight networks, whilst regional air freight connectivity in northern and southern parts of Europe is substantially lower.     

Preferred shopping destination: Hong Kong versus Singapore

Visitor shopping is an important contributor to the economy of Hong Kong as it accounts for more than half the total visitors' expenditure. Owing to its significance, and strong competition from Singapore, Hong Kong must re‐examine the city's attraction to shoppers. The tourism and retail industries of Hong Kong must formulate effective strategies to identify the strengths and weaknesses of the shopping environment in both cities. This study surveys 309 international visitors about their shopping expectations and perceptions of Hong Kong and Singapore in 15 attributes. Results were analysed by SPSS software (Statistical Package for Social Science) using the techniques of frequencies and paired t‐tests. Singapore outperforms Hong Kong notably in many areas, such as language ability, attitude and efficiency of service staff. The findings indicate an urgency for Hong Kong to strive harder. In conclusion, the article provides some recommendations for the city to re‐establish its reputation as the ‘shopping paradise’ of the Asia Pacific region and to meet the challenge of Singapore as the preferred shopping destination. Copyright © 2004 John Wiley & Sons, Ltd.     

The impact of terminal re-organisation on belly-hold freight operation chains at airports

While it is widely acknowledged that airport re-organisation from destination to dedicated airline group terminals makes passenger travel more seamless, more efficient and also more profitable for both airlines and airports, there is little known about the impacts of such change on freight and in particular belly-hold cargo chains. Our analysis includes data from all airports in Australia but focuses primarily on the proposed re-organisation of Sydney Kingsford Smith airport. This paper reveals a significant relationship between international freight volumes, terminal organisation and freighter operations. However, our interview results only confirm the volume/aircraft type relationship. The paper aims to contribute to the general discussion on the impact of passenger terminal organisation on belly-hold freight operations and more specifically to the consultation process around airport master planning.     

Consequences of logistics sprawl: Order or chaos? - the case of a parcel service company in Paris metropolitan area

Logistics sprawl is the phenomenon driving warehouses and freight terminals further and further away from city centers, for reasons that are mostly dependent on urban planning, field price and economies of scale. In the past, studies have already described logistics sprawl in Paris Metropolitan area. These studies have concluded that logistic facilities far from Paris city center increased the distance travelled, and by extension, CO₂ emissions. This study does not question logistics sprawl in Paris metropolitan area but questions its consequences.This study presents a point of view on the location of cross-docking terminals. One main parcel service carrier was studied through a database strong of 600,000 inputs including pick-ups and deliveries for two months in the Paris metropolitan area. This study is not intended to be representative of all merchandise flows but makes it possible to understand the running of one significant actor. This project aims at determining the optimum terminals location according to two criteria: minimization of the total distance as calculated by the Euclidean distance (as the crow flies) between terminals and points of pick-up/ delivery, and the number of authorized terminals. The number of terminals is modified to study its relationship with the spatial distribution of its clients.Interestingly, we found that optimized locations for this parcel service carrier are located outside of Paris city center. Those locations minimize the total distance to the clients, and thus, are the best places to limit pollution. The reason is that the carrier manages this perimeter through a polycentric organization. Paris Metropolitan area is viewed as several sectors and not as a whole for this carrier. It is therefore unknown how the carrier's performance has evolved over time, but its current organization is close to the optimal situation.