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real estate property taxes may drive these parcels into non-freight
development and push freight facilities into the urban fringe. High
personal property taxes can also be a concern if inventory is taxed
as personal property.
Public sector assistance and incentives
Public sector assistance in the form of tax credits, grants, low-cost loans,
training programs, utility discounts, and infrastructure development
is often used by a community to gain advantage over a competitor.
When competing sites are rated relatively equal, incentives offered When competing sites are rated
by the public sector may help close the deal. relatively equal, incentives
offered by the public sector may
Climate and natural hazards help close the deal.
In order to understand business interruption risks, companies will
collect data on the region's climate, natural hazards, and historic
information on how these have impacted business closures in past
years. Few areas are without some form of natural hazard risk, and
companies will sometimes compile data on excessive heat, cold, rain,
snowfall, earthquake, wildfire, tornado, hurricane, or other relevant
data to develop appropriate mitigation (and recovery) plans.
Weighing site selection factors
The site selection process and factors apply to all forms of freight
facilities in some fashion. Still, how these are applied varies
depending on who will use the facility. For example, the availability
of labor is a very important factor for a port facility whereas tax
incentives generally are of less importance, especially as many ports
are publicly owned. Likewise, the transportation network is critically
important to a distribution center but permitting and regulations are
far less important than they might be to a transload center that may
process hazardous materials.
Freight Facility Location Selection: A Guide for Public Officials 53
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Table 3 below identifies the relative weight of various factors that
will drive the site location decision for each type of freight facility.
Public officials should note that factors over which they have some
control permitting and regulations, the tax environment, incentives
and other forms of assistance are generally a less important factor
than access to markets, transportation networks, and a workforce
when location decisions are being made.
Table 3. Site Selection Criteria by Facility Type
Type of Logistics Facility
Distribution Intermodal Transload
Location Criteria Center Port Terminal Terminal ILC Hub Terminal City Terminal
Ability to Access Key
Markets or Customers
Interaction with
Transportation Network
Labor and Workforce
Total Cost Environment
Availability and Cost of
Suitable Facilities
Utilities
Permitting and
Regulation
Tax Environment
Public Sector Assistance
and Incentives
Climate and Natural
Hazards
Key
Priority of Criteria: Primary Factor Important Factor Lesser Factor
54 Freight Facility Location Selection: A Guide for Public Officials
