Logistics Clusters Analysis: Southern Dallas County and Northern Ellis Counties

Dr. Subhro Mitra Asst. Professor, Logistics and supply Chain Management University of North Texas - Dallas Study Area 12 cities of Southern Dallas county and Northern Ellis Counties 1.Cedar Hill 7.Glenn Heights 2.DeSoto 8.Midlothian 3.Duncanville 9.Ovilla

4.Lancaster 10.Red Oak 5.Hutchins 11.Wilmer Ref: NCTCOG Ref: 6.Ferris 12.Balch Springs Mitra Subhro Dr.  Best Southwest Partnership - non-profit corporation for development of these partner cities.  Located within this area is the International Inland Port of Dallas (IIPOD). 2 3 Dr. Subhro Mitra Ref: NCTCOG Objective

• Get an in-depth understanding of the factors responsible to make this region popular location for logistics and transportation facilities. • Existing infrastructure

• Future infrastructure need NCTCOG Ref: • Impact of this cluster on the economy of the Mitra Subhro Dr. region • Analyze important changes in the global economy and it’s impact on this logistics cluster 4 What is a logistic cluster

Transportation and Logistics cluster is considered to be a grouping of –

 Firms providing logistics services

 Logistics operations of industrial firms Ref: NCTCOG Ref: Dr. Subhro Mitra Mitra Subhro Dr.  Business with large logistics component

5 Operational Advantages of Logistics Clusters • Transportation Advantages of Logistics Clusters • Economies of Scope in Transportation : balanced inbound and outbound flows. • Economies of Scale : likelihood of filling in

• Economies of Density : consolidate LTL • Economies of Frequency : with increased volumes frequent Ref: NCTCOG Ref:

moving in and out of cluster. Mitra Subhro Dr. • Shared Assets : warehouse capacity can be shared • Serving customers: new service provider easily available • Shared Workforce : knowledge sharing

6 Advantages of the Site

• Direct rail configuration – faster shipment • Advanced intermodal facilities - overhead crane operations, freight classification yards, transload facilities and container storage. Ref: NCTCOG Ref: Dr. Subhro Mitra Mitra Subhro Dr.

7 International inland port of Dallas • IIPOD is a public-private partnership serves as a third phase of regional intermodal development • Active project’s impact area encompasses more than 7,000 acres, more than 12 million sq ft of warehouse space has been built or is currently under construction. A little over 10.5 million sq ft of this space has been leased.

• This IIPOD expect to handle both domestic and international NCTCOG Ref: Dr. Subhro Mitra Mitra Subhro Dr. containerized freight • Provide customs preclearance for goods bound for Mexico and Canada

8 9 Dr. Subhro Mitra Ref: NCTCOG 10 Dr. Subhro Mitra Ref: NCTCOG Recent Job creation

Facility New Jobs Lancaster Quaker Sales & Distribution 1.2 Million sq st 85 BMW Auto Parts Distribution 300,000 square feet 65 Red Oak Triumph Aerostructures 646,000 square feet 225

Wilmer Whirlpool’s one million square foot Union Pacific Intermodal facility

Duncanville NCTCOG Ref:

WinCo Foods 200 Mitra Subhro Dr. DeSoto Kohl’s E-Commerce Distribution Center Methodist Charlton Medical Center Midlothian Buckley Oil 25

11 Available infrastructure

• The Best Southwest Area is also becoming very well known as a Golden Rectangle for commercial and logistics development, with a great highway system surrounding it:

• Interstate Highways -I 35, I 20 and I 45 connecting all commercial and industrial sectors of the country and the Port

of Houston. NCTCOG Ref: Dr. Subhro Mitra Mitra Subhro Dr.

• Less congested arterial roadways connects local areas in this region to the interstates

• Served by two freight railroads (Union Pacific and BNSF). 12 Available infrastructure

• 98% of the U.S. population can be reached from this region within 48 hours by truck • I- 45 is a direct connection to the Port of Houston. • I-35 is a primary north/south interstate through the heartland

of the nation and is also known as the NAFTA Highway. Provides direct access to the Mexican border at Laredo. Ref: NCTCOG Ref:

• I- 20 is the connection to eastern population centers like Mitra Subhro Dr. Atlanta and major system connectors like I- 75, I- 81, and I- 95. It connects I- 10 and the San Pedro Bay Ports of Los Angles and Long Beach to the east coast population centers.