American Association of State Highway and Transportation Officials

Special Committee on Research and Innovation

 

FY2023 NCHRP PROBLEM STATEMENT TEMPLATE

 

Problem Number:  2023-B-28

 

Problem Title

Factors which determine the location and characteristics of logistics / manufacturing clusters – understanding the impact to the freight network and local land use

 

Background Information and Need For Research

The expectation of consumers for fast delivery has contributed to the emergence of fulfillment and distribution centers which are positioned closer to residential clusters. In additional, logistics clusters which are tied to ports and airports are being located throughout the nation, in some cases hundreds of miles for the seaport or airport.

 

The evolving interest in on- and near-shoring is expected to affect a diverse array of communities beyond those which have traditionally hosted manufacturing operations. Many communities have become the site of these clusters without the benefit of understanding the factors which are driving their emergence and understanding the impacts of these facilities on the surrounding communities’ land use and transport infrastructure.

 

This project will study the emergence of several clusters from the perspective of the factors which are used to select the location, the development of the specific site, and the impact on the community in terms of changes to land use, the employment base of the community, and effects on the social and economic structure of the community.

 


The following map prepared by the Arizona State University International Logistics & Productivity Improvement Lab identifies the major logistics cluster platforms in the United States.

 

A similar map below was prepared by the Economic Development Commission of Waterloo, Ontario, Canada identifies not only the location of, but also the employment levels associated with advanced manufacturing clusters in the US and Canada. As this map and the map above illustrate, the location of the clusters are not necessarily tied to traditional locations.

 

The clusters generate and receive significant flows of freight which are international, trans-border (being changed by the relatively-new North American “USMCA”: U.S. Mexico-Canada Agreement on trade), and domestic in nature. All modes of transport are employed in the move of shipments. The multi-modal nature of the freight flows requires an understanding of the unique operational aspects of each mode and their interface requirements with the other freight transport modes.

 

 

Literature Search Summary

A cursory literature search has identified four reports which address logistics and manufacturing clusters. Reports are dated prior to COVID-19 and do not reflect significant and ongoing changes, which supports the need to comprehensively revisit the situation and update research findings.

           “Transportation and Logistics Cluster Competitive Advantages in the US regions: A Cross-Sectional and Spatio-Temporal Analysis”, I Kumar, A Zhalnin, A Kim, LJ Beaulieu - Research in Transportation …, 2017 – Elsevier

           “Foresight Support Systems to Facilitate Regional Innovations: A Conceptualization Case For a German Logistics Cluster”, J Keller, C Markmann, A Heiko - Technological Forecasting and Social …, 2015 - Elsevier

           “Absorptive Capacity, Cluster Linkages, and Innovation: An Evidence From Bengaluru High-Tech Manufacturing Cluster”, D Chandrashekar, BSM Hillemane - Journal of Manufacturing …, 2018 - emerald.com

           “Research on the Synergetic Development between Manufacturing Cluster and Logistics Enterprises” [J], X XU, W CAO, C JIN, W GUO - Packaging Engineering, 2007 - en.cnki.com.cn

           Future Freight Flows (FFF) initiative launched as part of the National Cooperative Highway Research Program (NCHRP) Project 20-83(01)

 

Research Objective

A quick anecdotal review of logistics clusters near seaports and airports as well as inland ports, reveals a growing development of freight processing centers which work in concert with seaports and airports to shift certain freight processing off seaport and airport properties. The emergence of new manufacturing clusters, not always tied to traditional locations, is creating challenges for local land use planners, and regional transportation planners, and freight planning practitioners. This research will identify the parties involved in this evolution as well as the factors which lead to location and facility type decisions.

 

Urgency and Potential Benefits

Freight traffic related to the emergence and/or expansion of logistics structures and emerging manufacturing activities has numerous impacts on the local community. In many instances, local land use planners and regional transportation planners must respond to rather than pro-actively prepare for these developments. As a result, a wide array of impacts on the socio-economic-transportation fabric of the community emerge.

 

These impacts can spread beyond the precincts of the logistics structure. As a result of the research, planners will understand the factors employed to identify and select locations for the clusters and the direct and indirect impacts on the socio-economic-transportation fabric of the community. The identification of the root factors and the consequential impacts will assist planners in proactively creating programs to strategically identify and recommend the location of the clusters and mitigate and/or minimize the adverse impacts of the clusters.

 

Implementation Considerations and Supporters

The research should lead to the development of a guidebook which outlines the identified locational factors and the impacts. The optimal presentation of this information would be in an interactive guidebook which includes explanatory scenarios.

 

The major components of the guidebook should include:

           How to identify and forecast freight flows employing innovative processes based on scenario constructs.

           Identification of the local and regional factors will attract and support the emergence and/or expansion of logistics and manufacturing clusters.

           Identification of impacts on the local community including on the transport infrastructure, land use, employment cohorts, disadvantaged communities, natural environment, educational facilities and programs, and political considerations.

           Best practices and examples of planning concepts and projects to accommodate the emergence and/or expansion of logistics and manufacturing clusters.

 

This research needs statement is supported by:

AASHTO Special Committee on Freight, Caroline Kieltyka (AASHTO Liaison), ckieltyka@aashto.org, 202-624-8489

 

Recommended Research Funding and Research Period

The research and guidebook should be completed within 18 months. Suggested funding is $450,000.

 

Problem Statement Author(s): For each author, provide their name, affiliation, email address and phone.

           Charles Edwards, Univ. of North Carolina at Chapel Hill, chwedwards@gmail.com , (919) 215-0605

           Sushant Sharma, TTI, s-sharma@tti.tamu.edu, (314) 556-7363

           Tom McQueen, Georgia Department of Transportation tmcqueen@dot.ga.gov, (404) 631-1785

 

Potential Panel Members: For each panel member, provide their name, affiliation, email address and phone.

The panel should be composed of a diverse group which represents community and regional and state DOT transportation planners, transport providers, and industrial developers.

 

Person Submitting The Problem Statement: Name, affiliation, email address and phone.

Tom McQueen, AICP

Asst. Planning Administrator

Georgia Department of Transportation

tmcqueen@dot.ga.gov

(404) 631-1785