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What do we mean by freight facilities? There are multiple types of facilities that interact with freight at different points along the supply chain (the supply chain starts with unprocessed raw materials and ends with the final customer using the finished goods). Though Tables 1a through 1g define the functions of various types of freight facilities, they essentially define freight facilities as "those which freight passes through (sometimes with a a larger sense, the term "freight layover)." However, it is important to note to local officials that, in a facilities" can apply to a much larger larger sense, the term "freight facilities" can apply to a much larger universe of uses... In this looser universe of uses and could be more loosely defined as "facilities that definition, facilities like truck stops, attract and produce trips of freight-carrying vehicles" or "facilities big box stores, rail yards, refineries, that need materials and ship materials." and manufacturing plants can all be considered freight facilities. Since each of these types of freight facilities has a different purpose and different location needs, it is worthwhile to understand the functions housed in each, as well as the role that the facility performs. The following tables provide a summary of freight facility types and their roles in the supply chain. Freight Facility Location Selection: A Guide for Public Officials 5

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Table 1. Facility Types and Their Functions 1a. Distribution Centers Distribution Centers (DCs) take several forms, but all fill the role of storing and facilitating the movement of goods to their final destination. Most DCs are large, specialized facilities, often with refrigeration or air conditioning, where products (goods) are held and assembled into deliveries to retailers, wholesalers, or directly to consumers. Normally operated by a single company as a point in its supply chain, most DCs are linked to a geographic service region but some have specific purposes, such as the handling of urgent goods or imports. DCs perform staging, consolidation, and unitizing functions, can be involved in final stage manufacturing (such as packaging and labeling of goods), and may double as an operating terminal for an associated truck fleet. Warehouses are a less elaborate form of DC, focused simply on the storage of goods or merchandise. They may be multiuser facilities owned by a third party and leased by various supply chain customers (who may then view their portions as DCs), places for storage services offered by truck lines or household goods carriers, or inventory holding points for manufacturers or traders. A Cross-Dock Facility handles staging where inbound items are not received into stock, but are prepared for shipment to another location or for retail stores. Cross-docking supports lower costs through consolidated shipping and can create a pivot point for changing the specific destination of goods in transit. This facility breaks bulk items into smaller packs for delivery to warehouse/DCs or final destination. 1b. Ports (Sea and Air) Ports are key facilities for domestic shipping as well as the importing and exporting of goods, providing interface to rail and road. A Port serves as a point of entry and exit for incoming and outgoing shipments. Most commonly referring to air and seaports engaged in foreign and domestic trade, the term port also embraces points along rivers, canals, and lakes, as well as land gateways straddling national borders. Ports may have berths or hangars for vessels or aircraft, terminals and warehouses for the management of goods, staging and access areas, and customs facilities for the handling of foreign trade. Ports may specialize in certain types of cargo, such as containers, petroleum, bulk products, or automobiles, and they may also be military facilities. A Load Center is a seaport engaged in container trade that acts as a high-volume transfer point for goods moving long distances inland, and provides service to its regional hinterland. A Foreign Trade Zone (FTZ) is a geographic area in or adjacent to international ports where com mercial merchandise receives the same Customs treatment it would if it were outside the commerce of the United States. An FTZ provides (a) cash flow timing benefits for warehoused products prior to distribution for sale and (b) significantly reduced import duties if value is added via refinement or sub- assembly processes prior to distribution for sale. An Inland Port is a physical site located away from traditional coastal or land borders with the purpose of facilitating and processing international trade and typically provides value-added services (such as assembly, kitting, or customization) as goods move through the supply chain. Inland ports may also feature FTZs. 6 Freight Facility Location Selection: A Guide for Public Officials

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1c. Intermodal Intermodal terminals, in the purest definition, include freight facilities that Terminals allow for the movement of truck trailers and marine, truck, or air containers between modes (e.g., road and rail, rail and maritime, road and air, etc.). These facilities handle transfer between ocean-going vessels and inland transport or between other modes to take advantage of the service, economic, or environmental efficiencies of one mode (e.g., rail) for concentrated volumes in long haul movement vs. the speed and reach of another (e.g., truck) for dispersed volumes in local pickup and delivery. Physical features may include rail sorting yards, container moving equipment (permanent or portable cranes), container and chassis storage facilities, warehouse or cross-dock facilities, and depending upon the modes being interfaced other support facilities for sea, road, or rail equipment. 1d. Bulk or A receiving and distributing facility for lumber, grain, concrete, petroleum, Transload Terminal aggregates, and other such bulk products is referred to as a bulk or transload facility. These facilities support the direct or indirect transfer of goods between the carrying equipment of different modes. They are technically another form of intermodal facility, but involve the transfer of the goods themselves rather than of the equipment that bears them (e.g., containers). Physical features may include storage areas and tanks, cranes or bulk transfer machinery, warehouses, railroad sidings, truck loading racks, and related elements. An Auto Terminal is a type of transload facility for finished motor vehicles moving between ocean- going vessels, railcars, and truck trailers. Vehicles are driven under their own power between carrier equipment, and thus the goods themselves are the objects of intermodal transfer. Such facilities typically require substantial amounts of parking and movement space for the storage and safe staging of vehicles and have particularly high security requirements. 1e. Hub Terminals A hub terminal is a carrier-operated facility whose principal function is the intramodal re-sorting and re-consolidation of inbound into outbound load sets for continuation in intercity linehaul. Hubs are located at central points, marshalling volumes to and from city terminals within a region and between hubs in other regions. They are typically large-acreage facilities processing a high number of vehicles. In the case of national hubs (as are used in air freight), the land and building requirements are very extensive. In less than truckload (LTL) trucking, a hub is a cross-dock operation transferring goods from trailers at inbound dock doors to others at outbound doors. In small package trucking and mail, sort and conveyor machinery are used in the transfer. A comparable sorting system is used in air freight, except that aircraft and air containers take the place of trailers. In railroading, the terminal is called a classification yard, with sets of inbound and outbound tracks, and includes the transfer of railcars from arriving to departing trains. For intermodal trains, the transfer can be of trailers and containers from railcars on one train to those on another, as well as the transfer of railcars between trains. Hubs may also serve a city terminal function for local freight, and may incorporate dispatch, driver services, equipment maintenance, and equipment storage. Freight Facility Location Selection: A Guide for Public Officials 7

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1f. City Terminals A city terminal is a carrier-operated facility whose chief functions are the intramodal (e.g., truck to truck) sorting and consolidation of load sets between intercity linehaul and local pickup and delivery, as well as the management of pickup and delivery services to customers. City terminals are end points handling distribution within a metropolitan area and between that area and its hub. Acreage and vehicle volumes for most facilities are moderate but correspond to market size. Carriers in big cities may have one major terminal or a few smaller ones. Less than truckload (LTL) carriage operations involve cross-dock transfers of goods between smaller city and larger linehaul trucks. For small package and mail, sorting equipment may be utilized. In air freight, the transfers are between trucks used for local distribution and air containers carried inside trucks. In railroading, the terminal is called a marshalling or industrial yard, and the transfer is of railcars between tracks for local and intercity road trains. Management by local dispatching of pickup and delivery to customers and of related equipment pools is a crucial role, and city terminals are sometimes called service centers. Private truck fleets frequently perform this function out of their parent company's DCs, where the load assembly is performed as part of customer order fulfillment (and the principal service is limited to delivery, not pickup). Bulk truck fleets rarely use city terminals for load transfer and instead utilize them for customer service and the cleaning and maintenance of equipment between loads. Equipment storage and maintenance are common at city terminals, as are driver services and a limited amount of goods storage for customer and operating convenience. City terminals occasionally have a mixed character: some act as mini-hubs, staging loads between small town terminals and major hubs, and others located on airport property act as intermodal terminals, transferring containers to and from aircraft. A Drop Yard is a site used by carriers for equipment storage and load staging, but with no transfer of goods. A less elaborate form of city terminal and sometimes with lighter security requirements, a drop yard can be as simple as a fenced parking lot with, perhaps, an office trailer. Used by truckload carriers, they are handoff points between local and intercity drivers ordinarily to improve scheduling efficiency and are servicing points for customer equipment pools. Used by overseas shipping lines, railroads, and equipment owners, they are called container yards and are used for the storage and management of containers and chassis, as well as staging between vessels, trains, and groundside customers. Drop Yards may have local dispatching and some driver services, and may offer or support equipment maintenance. 8 Freight Facility Location Selection: A Guide for Public Officials

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1g. Integrated A relatively new freight facility type, Integrated Logistics Centers are Logistics Center (ILC) industrial parks or mixed use developments specifically constructed around or "Freight Village" high performance freight servicing facilities. Known sometimes as "freight villages," there is frequently an intermodal or hub terminal at their heart. A full portfolio of activities relating to transport, logistics, and the distribution of goods, both for national and international transit, is often offered by various operators. Manufacturing and other industrial uses are then situated around the core transportation facilities. In this way, the transportation-related "village" makes highly efficient use of the core capabilities, such as regular rail or intermodal service. ILCs represent examples of "Smart Growth," as their economies of density and scope support efficient logistics within a concise community and environmental footprint. Freight Facility Location Selection: A Guide for Public Officials 9