Distribution facilities in California: A dynamic landscape and equity considerations
Miguel Jaller
University of California, Davis
Xiuli Zhang
University of California, Davis
Xiaodong Qian
Wayne State University
DOI: https://doi.org/10.5198/jtlu.2022.2130
Keywords: Los Angeles, disadvantaged communities, environmental justice, Freight Facilities, California
Abstract
This work studies the distribution of warehouses and distribution centers (W&DCs) in California and analyzes their potential relationships with disadvantaged communities (DACs). Through aggregated spatial analyses and econometric modeling, the research compares the concentration of W&DCs in five metropolitan planning organizations (MPOs) in California. The analyses show that the weighted geometric centers of W&DCs have shifted slightly toward city central areas in all five MPOs in the last few years, contrasting to the logistics sprawl trends evidenced in previous research. In the Bay Area and Southern California, W&DCs are more prevalent in areas with higher pollution burden, according to the CalEnviroScreen (CS) score. In Southern California, the study analyzes disaggregate industrial real estate data of 49,697 property transactions (properties sold) between 1989 and 2018. On average, the size of the facilities transacted have decreased, especially for those closer to the urban center. These results are confirmed using parametric and non-parametric data analyses. During recent years, smaller and closer (to the urban core) facilities represent the largest share in the transactions, consistent with the trends in e-commerce and its associated distribution requirements. Moreover, the data show a disproportionate sitting of facilities in areas where DACs reside. The paper ends with a discussion of policy and planning recommendations.
References
Allen, J., Browne, M., Woodburn, A., & Leonardi. J. (2012). The role of urban consolidation centers in sustainable freight transport. Transport Reviews, 32(4), 473–490.
Andreoli, D., Goodchild, A., & Vitasek, K. (2010). The rise of mega distribution centers and the impact on logistical uncertainty. Transportation Letters, 2(2), 75–88.
Anselin, L. (1988). Spatial econometrics: Methods and models. Dordrecht, The Netherlands: Kluwer Academic Press.
Barboza, T. (2021). As "diesel death zones" spread, pollution regulators place new rules on warehouse industry. Los Angeles Times, Los Angleles, CA.
Bowen Jr, J. T. (2008). Moving places: The geography of warehousing in the US. Journal of Transport Geography, 16(6), 379-387. https://doi.org/10.1016/j.jtrangeo.2008.03.001
Boysen, N., De Koster, R., & Weidinger, F. (2019). Warehousing in the e-commerce era: A survey. European Journal of Operational Research, 277(2), 396–411.
Briggs, R. (2010). Global measures of spatial autocorrelation. Retrieved from http://www.utdallas.edu/~briggs/
Cameron, A. C., & Trivedi, P. K. (2009). Microeconometrics using stata. College Station, TX: Stata Press.
Cameron, A. C., & Trivedi, P. K. (2013). Regression analysis of count data. Cambridge, UK: Cambridge University Press.
Cidell, J. (2010). Concentration and decentralization: The new geography of freight distribution in US metropolitan areas. Journal of Transport Geography, 18(3), 363–371. http://dx.doi.org/10.1016/j.jtrangeo.2009.06.017
Combes, F. (2019). Equilibrium and optimal location of warehouses in urban areas: A theoretical analysis with implications for urban logistics. Transportation Research Record, 2673(5), 262–271.
Dablanc, L. (2014). Logistics sprawl and urban freight planning issues in a major gateway city. In Sustainable urban logistics: Concepts, methods and information systems (pp. 49-69). New York: Springer.
Dablanc, L., Ogilvie, S., & Goodchild, A. (2014). Logistics sprawl: Differential warehousing development patterns in Los Angeles, California, and Seattle, Washington. Transportation Research Record, 2410, 105–112.
Dablanc, L., & Rakotonarivo, D. (2010). The impacts of logistics sprawl: How does the location of parcel transport terminals affect the energy efficiency of goods' movements in Paris and what can we do about it? Procedia Social and Behavioral Sciences, 2(3), 6087–6096. https://doi.org/10.1016/j.sbspro.2010.04.021
Dablanc, L., & Ross, C. (2012). Atlanta: A mega logistics center in the Piedmont Atlantic Megaregion (PAM). Journal of Transport Geography, 24, 432–442.
Dessouky, M., Giuliano, G., & Moore, J. E. (2008). Selected papers from the National Urban Freight conference. Transportation Research Part E, 2(44), 181–184.
Gerend, J. (2017). The impacts of e-commerce on the high street: Nascent responses in Germany. Journal of Urban Regeneration & Renewal, 10(3), 266–275.
Giuliano, G., & Kang, S. (2018). Spatial dynamics of the logistics industry: Evidence from California. Journal of Transport Geography, 66, 248–258.
Giuliano, G., Kang, S., & Yuan,Q. (2016). Spatial dynamics of the logistics industry and implications for freight flows. Retrieved from https://ncst.ucdavis.edu/wp-content/uploads/2014/08/06-17-2016-NCST-Spatial-Dynamics-Draft-Final-Report.pdf
Guerin, L., & Vieira, J. G. (2018). Logistics sprawl in São Paulo metro area. Proceedings of the Hamburg International Conference of Logistics, 26, 147–165. https://doi.org/10.15480/882.1817
Guerin, L., Vieira, J. G. V., de Oliveira, R. L. M., de Oliveira, L. K., de Miranda Vieira, H. E., & L. Dablanc, L. (2021). The geography of warehouses in the São Paulo metropolitan region and contributing factors to this spatial distribution. Journal of Transport Geography, 91, 102976.
Heitz, A., Dablanc, L., Olsson, J., Sanchez-Diaz, I., & Woxenius, J. (2020). Spatial patterns of logistics facilities in Gothenburg, Sweden. Journal of Transport Geography, 88, 102191. https://doi.org/10.1016/j.jtrangeo.2018.03.005
Hijmans, R. J. , Williams, E. , Vennes, C. , & Hijmans, M. R. J. (2017). Package “geosphere.” Spherical trigonometry, 1(7). https://cran.r-project.org/web/packages/geosphere/index.html
Jaller, M., & Pahwa, A. (2020). Evaluating the environmental impacts of online shopping: A behavioral and transportation approach. Transportation Research Part D: Transport and Environment, 80, 102223.
Jaller, M., Pahwa, A., & Zhang, M. (2021). Cargo routing and disadvantaged communities. Long Beach, CA: Pacific Southwest Region University Transportation Center.
Jaller, M, & Pineda, L. (2017) Warehousing and distribution center facilities in Southern California: The use of the Commodity Flow Survey data to identify logistics sprawl and freight generation patterns. Retrieved from https://ncst.ucdavis.edu/wp-content/uploads/2015/08/NCST-Caltrans-Jaller-Warehouse-and-Distribution-Logistics-Sprawl-FINAL-July-19-2017.pdf
Jaller, M., Pineda, L., & Phong, D. (2017). Spatial analysis of warehouses and distribution centers in Southern California. Transportation Research Record, 2610, 44–53.
Jaller, M., Qian, X., & Zhang, X. (2020a). E-commerce, warehousing and distribution facilities in California: A dynamic landscape and the impacts on disadvantaged communities. Retrieved from https://escholarship.org/uc/item/1pv6t7q9
Jaller, M., Rivera-Royero, D., Harvey, J., Kim. C., & Lea, J. (2020b) Spatio-temporal analysis of freight patterns in Southern California. Retrieved from https://escholarship.org/uc/item/1259f9s1
Jaller, M., Wang, X., & Holguín-Veras, J. (2015). Large urban freight traffic generators: Opportunities for city logistics initiatives. Journal of Transport and Land Use, 8(1), 51–67. https://doi.org/10.5198/jtlu.2015.406
Kang, S. (2018). Why do warehouses decentralize more in certain metropolitan areas? Journal of Transport Geography, 88, 102330.
Kang, S. (2020). Relative logistics sprawl: Measuring changes in the relative distribution from warehouses to logistics businesses and the general population. Journal of Transport Geography, 83, 102636.
Liaw, A., & Wiener, M. (2002). Classification and regression by randomForest. R News, 2(3), 18–22.
Lin, Y. (2019). E-urbanism: E-commerce, migration, and the transformation of Taobao villages in urban China. Cities, 91, 202–212.
Nahiduzzaman, K. M., Aldosary, A. S., & Mohammed, I. (2019). Framework analysis of e-commerce induced shift in the spatial structure of a city. Journal of Urban Planning and Development, 145(3), 04019006.
Office of Environmental Health Hazard Assessment (OEHHA). (2017). CalEnviroScreen 3.0. Retrieved from https://oehha.ca.gov/calenviroscreen/report/calenviroscreen-30.
Oliveira, R., Schorung, M., & Dablanc, L. (2021). Relationships among urban characteristics, real estate market, and spatial patterns of warehouses in different geographic contexts. Paris: Université gustave eiffel.
Olsson, J., & Woxenius, J. (2012). Location of freight consolidation centers serving the city and its surroundings. Procedia-Social and Behavioral Sciences, 39, 293–306.
Pahwa, A., & Jaller. M. (2020). Evaluating the costs and distribution structure in last mile deliveries under short time-windows. 99th Annual Transportation Research Board (TRB) Meeting, January 12–16, Washington, DC.
Pahwa, A., & Jaller, M. (2022). A cost-based comparative analysis of different last-mile strategies for e-commerce delivery. Transportation Research Part E: Logistics and Transportation Review, 164, 102783.
Pettersson, F., Hiselius, L., & Koglin, T. (2016). Exploring the nexus between e-commerce and urban land-use planning–e-commerce impacts on mobility and location strategies. Paper presented at the 14th World Conference on Transport Research, July 10–15, Shanghai.
Rivera-Royero, D., Jaller, M., & Kim, C. (2021). Spatio-temporal analysis of freight patterns in Southern California. Transportation Research Record (In print).
Rodrigue, J.-P., Dablanc, L., & Giuliano, G. (2017). The freight landscape: Convergence and divergence in urban freight distribution. Journal of Transport and Land Use, 10(1), 557–572.
Sakai, T., Kawamura, K., & Hyodo, T. (2015). Locational dynamics of logistics facilities: Evidence from Tokyo. Journal of Transport Geography, 46, 10-19. https://doi.org/10.1016/j.jtrangeo.2015.05.003
SCAQMD. (2014). High cube warehouse trip rate study for air quality analysis. Retrieved from https://www.aqmd.gov/home/rules-compliance/ceqa/air-quality-analysis-handbook/high-cube-warehouse#
Segal, M. R. (2004). Machine learning benchmarks and random forest regression. San Francisco, CA: Center for Bioinformatics and Molecular Biostatistics, University of California.
Smith, J. (2019). E-commerce driving bigger demand for smaller warehouses, CBRE says. Wall Street Journal, New York.
Soot, S. (1975). Methods and measures of centrography: A critical survey of geographic applications (occasional publications of the Department of Geography, paper no. 8.). Urbana-Champaign, IL: University of Illinois.
Speiser, J. L., Miller, M. E., Tooze, J., & Ip, E. (2019). A comparison of random forest variable selection methods for classification prediction modeling. Expert Systems with Applications, 134, 93–101.
Strale, M. (2020). Logistics sprawl in the Brussels metropolitan area: Toward a socio-geographic typology. Journal of Transport Geography, 88, 102372.
Tabuchi, H. (2021). E-commerce mega-warehouses, a smog source, face new pollution rule. The New York Times, New York.
van den Heuvel, F. P., De Langen, P. W., van Donselaar, K. H., & Fransoo, J. C. (2013). Spatial concentration and location dynamics in logistics: The case of a Dutch province. Journal of Transport Geography, 28, 39–48.
Visser, J., & Nemoto, T. (2003). E-commerce and the consequences for freight transport. In Innovations in freight transport (pp.165–193). Southhampton, UK: WIT Press.
Vlachopoulou, M., Silleos, G., & Manthou, V. (2001). Geographic information systems in warehouse site selection decisions. International Journal of Production Economics, 71(1), 205–212.
Woudsma, C., Jakubicek, P., & Dablanc, L. (2016). Logistics sprawl in North America: Methodological issues and a case study in Toronto. Transportation Research Procedia, 12, 474–488. http://dx.doi.org/10.1016/j.trpro.2016.02.081
Yang, C., Chen, M., & Yuan, Q. (2021). The geography of freight-related accidents in the era of E-commerce: Evidence from the Los Angeles metropolitan area. Journal of Transport Geography, 92, 102989.
Yeates, M. (1973). An introduction to quantitative analysis in human geography. New York: McGraw-Hill.
Yuan, Q. (2018a). Location of warehouses and environmental justice. Journal of Planning Education and Research, 4(3), 282–293 https://doi.org/10.1177/0739456X18786392
Yuan, Q. (2018b). Mega freight generators in my backyard: A longitudinal study of environmental justice in warehousing location. Land Use Policy, 76, 130–143.
Yuan, Q. (2019). Does context matter in environmental justice patterns? Evidence on warehousing location from four metro areas in California. Land Use Policy, 82, 328–338.
Zhu, Y., Diao, M., Ferreira, J., & Zegras, P. C. (2018). An integrated microsimulation approach to land-use and mobility modeling. Journal of Transport and Land Use, 11(1), 633–659.