An investigation of contributing factors for warehouse location and the relationship between local attributes and explanatory variables of Warehouse Freight Trip Generation Model

Abstract

The location of warehouses is strategic for urban goods distribution, and the decision factors are subjective. This paper aims to analyse the contributing factors to warehouse location and describe the association between local attributes and the explanatory variables of a Warehouse Freight Trip Generation Model (WFTGM). We developed this study using data from 42 warehouses located in Belo Horizonte (Brazil). The results indicated that the accessibility to/from warehouses and the land cost are the most critical factors contributing to warehouse location decision. Additionally, the accessibility of trucks for delivery has a strong positive correlation with the accessibility of freight vehicles for loading. The land cost negatively correlates with all factors except the employee's accessibility, indicating an antagonistic relationship with other variables. Considering the Warehouse Freight Trip Generation Model, the warehouse-size related variables provided the best-fit models. Additionally, the warehouse size is not independent of the neighbourhoods' population and distance to the main ring roads traversing this city. The results support the development of public policies related to new warehouses' licensing process and offer guidance on warehouses' location in urban areas.