World Trade - September 2008 - (Page 26) SUPPLY CHAIN Inland ports do more than just duplicate port or gateway functions at inland locations. They concentrate transportation and logistics services, helping transportation planners to promote economic development through logistics integration. Some value-added services include light manufacturing, as in the case of Hillwood’s Alliance Texas in Fort Worth. “This was one of the early successful and fast-growing centers with a large BNSF terminal, airport, and interstate access that attracted a variety of DCs and logistics services,” Harrison reports. “They now provide a whole range of services to support DC operations and the efficient movement of goods. When DC efficiency was impacted by labor turnover due to the long commute from Dallas, Hillwood constructed a housing subdivision, together with associated services. It is a planned community rather than a terminal in the traditional sense.” The development now includes high-end homes, an air cargo facility, medical facilities, and shops. Nokia’s near-souring arrangement at Alliance is a good example of how inland ports can expedite product manufacture. A few years ago, the company had a twoprong approach, with components coming in from both tions. “We are seeing more requests for deconsolidation Singapore and Mexico. “They had regular service from centers, not only at the major ports of entry, but at sec- Singapore on Lufthansa into Dallas-Fort Worth and they ondary ports as well in the near-sourcing strategy.” would near-source everything else based on their daily Although Ganor reports GENCO has noticed some order requirements,” Harrison says. near-sourcing movement, he says deconsolidation stratBlack & Decker has a similar arrangement, utilizing egies continue to drive the networks of larger global the border maquiladoras along the U.S.-Mexico border. customers. Goods are received at a transload center Imports from Mexico still tend to be trucked, although where they are reconsolidated the Mexican rail system is being into full trailer loads in response strengthened. Kansas City hanto updated demand. “They are dles both Asian and NAFTA comshipped via truckload or interRailroads are improving modities and is a major proponent modal, depending on which of the inland port concept to the mode is more cost effective. point where they are negotiating their tracking and Deconsolidation strategies are to have a Mexican customs facility networks to be more popular because shipping conto handle inbound NAFTA comtainers inland is an expensive modities, reports Harrison. service-competitive proposition. Then you have to Whether products are coming worry about repositioning those from Mexico, Central America, or with trucks. empty containers.” China, they must move efficiently from the border into the heartland. Inland ports “The price of fuel is driving the Rail-based freight drove the long hauls away from truckers to development of inland ports from about 1995 through stack-trains, which will terminate at a few inland intermodal 2005, explains Robert Harrison, economist and research terminals,” explains Liss at The Allen Group. Companies scientist at the Center for Transportation Research at the with DCs at logistics parks adjacent to intermodal terminals University of Texas at Austin. Rail double-stack trans- in key distribution cities like Chicago, Dallas, and Kansas continental services, particularly serving West Coast City can save on the cost of moving containers. ports, soon carried large volumes of containers destined The Dallas Logistics Hub, developed by The Allen not just for northeastern markets, but to terminals serv- Group, is preparing for opportunities existing in that ing cities like Dallas, Kansas City, Memphis, and Chi- market. Its location, on 6,000 acres, will benefit from the cago. proximity of two Class 1 railroads, four major interstates, “So the notion was to take commodities to one cen- and Lancaster Airport, which will become an air-cargo tralized metropolitan site and deliver product to DCs facility. Its plans include mixed-use development and close to these new terminals,” Harrison explains. “They will have 60 million square feet of distribution, manuare multi-modal, value-added centers that come in all facturing, office, and retail space. shapes and sizes, and are really streamlining the importa“When the Panama Canal is widened, the Port of tion process for containerized products originating from Houston traffic can truck right up to Dallas,” says Liss. primarily Asia.” “And three miles west of the hub’s western boundary SEPTEMBER 2008 Union Pacific’s Dallas Intermodal Terminal. 26 WORLD TRADE
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