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Industrial space demand and freight transportation activity: exploring the connection

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  • Lindsey, Christopher
  • Mahmassani, Hani S.
  • Mullarkey, Matt
  • Nash, Terry
  • Rothberg, Steven

Abstract

There has been continuing interest among transportation planners, economic development specialists, and private industry about the relationship between the demand for industrial space and the level of freight transportation activity. With the growing importance of logistics and supply chain economics for many industrial and business activities, firms organizing their industrial activities and locating their warehousing and operational centers increasingly must consider the availability, quality, and cost of a range of transportation services, particularly in connection with essential intermodal activities. Accordingly, development of major logistics parks in conjunction with major intermodal hubs has become an important element in the overall industrial economy, predicated on the notion that robust freight activity is a good indicator of demand for industrial space. In this study, using regression techniques, we examine the relationship between freight transportation activity and industrial space demand at the metropolitan area level. The results confirm this relationship, reflecting significant statistical association between higher levels of freight traffic and higher levels of industrial space demand. This relationship is more pronounced in inland versus port markets. In addition, the data reveal that there was a shock to industrial space demand in 2001, thereby altering the structural relationship between demand and the drivers of demand.

Suggested Citation

  • Lindsey, Christopher & Mahmassani, Hani S. & Mullarkey, Matt & Nash, Terry & Rothberg, Steven, 2014. "Industrial space demand and freight transportation activity: exploring the connection," Journal of Transport Geography, Elsevier, vol. 37(C), pages 93-101.
  • Handle: RePEc:eee:jotrge:v:37:y:2014:i:c:p:93-101
    DOI: 10.1016/j.jtrangeo.2014.04.009
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    References listed on IDEAS

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    Cited by:

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    3. Aljohani, Khalid & Thompson, Russell G., 2016. "Impacts of logistics sprawl on the urban environment and logistics: Taxonomy and review of literature," Journal of Transport Geography, Elsevier, vol. 57(C), pages 255-263.
    4. Liu, Sijing & He, Nannan & Cao, Xindan & Li, Guoqi & Jian, Ming, 2022. "Logistics cluster and its future development: A comprehensive research review," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 168(C).
    5. Ni, Linglin & Wang, Xiaokun (Cara) & Zhang, Dapeng, 2016. "Impacts of information technology and urbanization on less-than-truckload freight flows in China: An analysis considering spatial effects," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 12-25.
    6. Bowen Sun & Haomin Li & Qiuyun Zhao, 2018. "Logistics agglomeration and logistics productivity in the USA," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(2), pages 273-293, September.
    7. Trent, Nadia M. & Joubert, Johan W., 2022. "Logistics sprawl and the change in freight transport activity: A comparison of three measurement methodologies," Journal of Transport Geography, Elsevier, vol. 101(C).

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