The role of airport proximity on warehouse location and associated truck trips: Evidence from Toronto, Ontario

Abstract

This paper examines the two-way relationship between land use and transportation from the perspective of warehouses in the Toronto Census Metropolitan Area. A location choice model is first developed to reproduce the decision process of firms selecting suitable locations to operate warehousing facilities. The results highlight that transportation plays a prominent role in the location of warehouses with proximity to airport, highway infrastructure, and rail to a lesser extent. However, the proportion of industrial land use provides the largest role in the model suggesting that available land and zoning is the most important factor. This paper also studies the impact of warehouse location on freight transportation trips. The resulting analysis highlights that GPS derived trips arising from warehouses near a major airport in Toronto tend to travel 1.8 times further than trips pertaining to other warehouses in the region. This suggests that trips related to the airport are more likely to be connected to a larger supply chain process.