“Congestion-Free” inland hubs?
May 11, 2006 by SwizStick
Filed under QuickNews, Supply Chain Management
As congestion continues to build up at key port areas, companies will seek other alternatives.
Eyeing the High Desert as a congestion-free logistics hub, a Chinese company is planning a global distribution center at a historic gold-rush junction 35 miles north of Victorville.
A direct portal is taking shape and could eventually emerge between the High Desert and China.
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The project is planned in three phases. First, Yasheng plans to build a logistics center for its own use, including a drystorage palletized area as well as a controlled-temperature and bulk-staging area for repacking and labeling. The second phase will involve an expansion of the first phase, and the third phase will involve offering logistics services to other companies — both from the U.S. and China.“The center plans to use SCLA for imports and exports, providing a direct link between the High Desert and China,†Zook said.
The 24-hour U.S. Customs office at SCLA would help companies bypass the congestion in Los Angeles and Ontario, he said.
Marianne Venieris, executive director of the Center for International Trade and Transportation at Cal State Long Beach, said she was not surprised the Chinese are flexing their logistics muscle in the northern Inland Empire.
“If you think a few years back, who would have thought that there would be a distribution area in the Inland Empire because everything was scattered around the port?†she said. “Now that they’re to capacity, people are looking at inland ports.â€
As for Yasheng’s potential to build a logistics portal at Kramer Junction, Venieris said it makes sense.
“Somebody said freight is moving the way of least resistance,†she said.
Inland ports are on the rise, probably no one has done more in this area than Kansas City Smart Port, who is actively working towards installing Mexican and Canadian customs offices into Kansas City to make it cheaper, easier, and faster to import and export goods from the region. As the cost of doing business at congested ports around the world continues to rise, freight will indeed follow the path of least resistance, moving to inland ports such as these. However, I wouldn’t expect key worldwide ports to suffer any time soon. The growth in international cargo should more than make up for any diversions of cargo to inland ports.
Robert Wallack on Sat, 17th Mar 2007 2:29 pm
There is potential growth in the developing of inland ports for the inland province of Inner Mongolia, China for many industries such as fruit & vegetables, dairy, meat