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OCR for page 37
· Size, configuration, or permitting ability vis-à-vis company
needs.
· The site or facility's ability to accommodate growth or
otherwise adapt to future requirements.
· Ease of access to and distance from key transportation
points (highway ramps, switching yards, intermodal facilities,
etc.).
· Cross-dock, ceiling height, maximum floor weight, number
of loading docks, rail access, and other materials movement
requirements of pre-existing facilities.
· Utility capacity.
· Site engineering considerations.
· Environmental considerations.
· Potential rent, purchase, and operating costs.
· Safety and security.
This information, along with the financial analysis described
below, allows the planning team to further refine the location
recommendations.
Cost modeling
Companies will typically develop cost models during the site
selection process to provide critical information as to how well each
scenario and/or location will provide an economic payback (and
over what period of time) for the proposed investment in the new
location. The amount of time required for the company to recoup its
initial investment and the rate of return must be compared against
other operational investments the company might consider in order
to prioritize such investments. Cost models typically include start-up
and recurring costs and may also include exit costs.
Cost modeling allows for consideration of the impact of changing cost
environments for fuel, labor, network service performance, revenues,
and tax exposure. A location's flexibility of use and potential to
accommodate future growth substantially increases the chances that
an appropriate location or scenario will be selected. These analyses
therefore result in a determination of both absolute and relative
feasibility for the alternative locations under consideration.
Freight Facility Location Selection: A Guide for Public Officials 37
