THE GEOGRAPHY OF TRANSPORT SYSTEMS

This logistics park began operating in 2002 and is entirely private, the terminal constructed by the class 1 rail operator BNSF for about 1 billion USD with ProLogis and CenterPoint responsible for the provision and management of distribution centers. Thus the world's largest rail company is in partnership with two of the largest promoters and managers of logistics space. It is a suburban logistic center taking advantage of the principle of co-location; the rail terminal and the logistics park have been constructed at the same time, which reduces drayage considerably. A wide array of freight distribution activities are present, including free trade zones. Most of the site is a reconversion of a former Army munitions depot (Arsenal), which account for 2,200 acres (excluding the rail terminal). The rail terminal handles the largest volume in North America and is directly linked to the most important North American rail corridor, the Los Angeles - Chicago axis, with the Chicago hub handling more than 10 million TEU. The rail lines of this corridor are either owned by BNSF or UP. The terminal is therefore modern and productive with limited dwell time and demurrage. This productivity and capacity obviously benefit the co-located activities that use such advantage in their marketing as the site benefits from massive economies of scale and an excellent accessibility to the North American freight distribution system.
A large share of the real estate of 12 million square feet are leased, underlining the business model is based upon revenue generation from location to amortize capital investments. The main tenants are Wal-Mart (retailer with 3.4 million square feet), DSC Logistics (third party logistics service provider; 3PL), Georgia Pacific (the world's largest wood product manufacturer), Potlatch (forest products), Sanyo Logistics (distribution), Partners Warehouse (3PL), California Cartage (3PL) and Maersk Logisicts (3PL). The presence of the maritime shipping company Maersk underlines the setting of a hinterland strategy pursued by several shippers around the world, which help better manage their containerized assets. The BNSF Logistics Park is an important component for inland distribution for imports from the West Coast and its dynamics are thus strongly linked with transpacific trade.
About two miles north of the site, a second component is planned with 3,600 acres that have been acquired by Centerpoint. The CenterPoint Intermodal Center - Joliet (CIC-Joliet), which will be co-located with a new UP intermodal terminal, is expected to come online in 2010. Jointly with BNSF Logistics Park, CIC-Joliet will create the largest logistics center in North America.