Warehouse's In the Inland Empire
Analyzing how transportation access shapes warehouse property locations in the Inland Empire
Introduction
Brief Overview: This research explores how transportation access, including rail networks, airports, marine ports, and traffic conditions, shapes the location of warehouse properties in the Inland Empire, pinpointing the reasons behind their specific placement.
Importance of Transportation: Transportation infrastructure is a critical factor influencing the value and viability of warehouses. For industries reliant on efficient supply chains, the proximity to key transportation hubs, is essential for reducing operational costs, improving delivery times, and supporting seamless logistics.
Objectives of the Study: Analyze trends, gain insights into warehouse placement, and their proximity to freight facilities.
Primary Research Question:
How does transportation access shape the location of warehouse properties in the Inland Empire?
Variables:
Proximity To:
- Airports
- Railroads
- Marine Ports
- Traffic Congestion
Access to Rail Networks and Intermodal Facilities
Rail networks and intermodal facilities are essential to warehouses, boosting logistical efficiency and cutting transportation costs. These hubs, such as the BNSF Logistics Center and Union Pacific’s Colton Yard, streamline the movement of goods by connecting rail and truck systems. Proximity to these facilities is a key driver of location analysis in the Inland Empire, benefiting freight-heavy industries like manufacturing, distribution, and import/export operations.
Los Angeles dominates business in the Inland Empire due to its strategic location near major freight rail facilities and ports like the Port of Los Angeles and Long Beach. The city serves as a key hub for rail networks like Union Pacific and BNSF, connecting goods from the ports to inland distribution centers. Its integrated intermodal transportation system allows for efficient movement of goods between ships, trains, and trucks, driving demand for the need of warehousing. This connectivity supports logistics, warehousing, and manufacturing sectors, making LA a vital business center for freight in the region.
Proximity to Airports and Air Cargo Facilities
Importance of Airport Proximity:
- Airports are critical hubs for time-sensitive and high-value goods.
- Proximity to air cargo facilities attracts industries reliant on efficient logistics, including electronics, pharmaceuticals, luxury goods and more.
- Warehouse properties near airports often experience higher demand, leading to increased property values and leasing rates.
Airports play a pivotal role in supply chains by shaping the location and economic activities of nearby businesses. This graph examines how business types are distributed within a 5-mile radius of airport facilities, emphasizing the correlation between business concentration and access to air cargo infrastructure and transportation efficiency.
LAX and Burbank airports dominate in retail, food, and manufacturing sales due to their proximity to dense urban areas and high consumer demand. These airports serve as hubs for diverse industries, benefiting from their central locations and extensive infrastructure.
In contrast, Ontario Airport leads in warehouse concentration within a 5-mile radius, reflecting its strategic role in logistics and goods distribution. Ontario’s focus on warehouse properties supports large-scale storage and transportation operations, making it a key player in regional supply chains while complementing the commercial strengths of LAX and Burbank.
Business density near airports is high due to demand for fast cargo transport, attracting logistics and distribution businesses. This creates significant employment opportunities and drives economic growth in surrounding areas, benefiting various supporting industries.
Proximity to Marine Freight Facilities
Warehouse Access Marine Ports
Marine freight facilities, particularly the Ports of Los Angeles and Long Beach, are essential for industries involved in importing and exporting large-scale goods. Their proximity to the Inland Empire significantly influences the demand for warehouse properties. These ports, the largest in the U.S., serve as key gateways for international trade, with quick access reducing drayage costs and improving transportation efficiency, making nearby locations highly desirable for businesses in the logistics and distribution sectors.
The Ports of Los Angeles and Long Beach are integral to Southern California's economy and the broader U.S. trade network. Together, they support over 3 million jobs nationwide, including nearly 230,000 in the region, and generate substantial fiscal benefits—$2.78 billion in state and local taxes and $4.73 billion in federal taxes in 2022. These ports are the foundation of Southern California's Trade Cluster, which produced $47.81 billion in tax revenue and provided vital middle-class jobs, especially for workers with lower educational attainment.
The Ports of Los Angeles and Long Beach are vital to Southern California's economy and the Inland Empire's role as a logistics hub. As the largest U.S. ports, they drive demand for nearby warehouses by facilitating efficient goods movement and reducing costs. Supporting millions of jobs and generating substantial tax revenue, these ports remain critical to the region's industrial growth.
Traffic Congestion and Flow Efficiency
The Ports of Los Angeles and Long Beach handle thousands of containers daily, resulting in a massive influx of trucks onto surrounding roadways. This heavy traffic creates significant congestion on critical routes such as the I-710 and I-5 freeways, which serve as key routes for the movement of goods. These delays disrupt logistics operations, leading to increased costs for fuel, extended labor hours, and missed delivery deadlines, all of which ripple through supply chains and impact businesses reliant on timely shipments.
The densest clustering occurs near the Ports of Los Angeles and Long Beach, which serve as primary entry points for international goods. This area also aligns with major freeway corridors, including the I-710 and I-5, which experience significant daily truck traffic. The high intensity of warehouse locations in the Inland Empire highlights the region's strategic importance for logistics operations, balancing the need for proximity to the ports with the operational challenges posed by heavy congestion and limited road capacity.
Final Synthesis
Why the Inland Empire is Ideal for Warehousing:
The Inland Empire's role as a logistics hub stems from its proximity to the Ports of Los Angeles and Long Beach, as shown on the map, and access to major highways like the I-10, I-15, and I-60. These transportation links connect warehouses to distribution centers and consumers, while the region's land supports large-scale developments, solidifying its importance in e-commerce and trade logistics.
The map reveals a dense clustering of warehouses near transportation hubs such as marine ports, rail freight terminals, and airports. These hubs enable the efficient transfer of goods between modes of transport; ships, trucks, trains, and planes, minimizing delays and optimizing supply chains.
This concentration also intensifies traffic congestion, particularly on routes like the I-710, I-5, and I-15 freeways, as illustrated by the heatmap of traffic and freight activity. The constant movement of trucks, trailers, and containers from ports and rail facilities to these warehouses contributes to increased vehicle volumes, affecting delivery times and operating costs. This highlights the trade-offs between logistical efficiency and the need for improved infrastructure to support such a high level of freight activity.
The concentration of transportation networks in the Inland Empire makes it a logistical powerhouse. Warehouses are strategically located to maximize efficiency in moving goods from ports, rail yards, and airports to consumers. While traffic congestion presents challenges, the benefits of accessibility to multiple transportation modes outweigh the drawbacks, solidifying the Inland Empire’s role as a premier warehousing and distribution hub.
