_Benefits of Industrial Estate Near Port Area
Port is one of interregional facilities which accommodate for intercontinental trade routes through cargo ships and thus, ports remain as one of the means for large scale logistic, containers, and other types of cargo shipping.
These reasons, increase demand for industrial estate to be near port area and directly integrated industrial area with port provides positive benefits which include:
- Efficient time for cargo and logistic transportation
The benefits of developing industrial estate in port area is to cut the time spend for cargo and logistic transportation. When a factory is located near a port, the time allocated to transport the goods to the port can instead be shifted to production or other industrial activities. The opposite will make goods distribution taking more time furthermore, this can also be exacerbated if the access is congested and unpredictable.
- Less transportation cost
Another benefit is less transportation cost. The cost to distribute goods is determined by the length of distance. If a business or company transport their goods through shipping, the closer to port the lesser the distance to travel and thus lower the transportation cost and the spending can be shifted to other needs.
- Decrease expenditure
Despite the higher cost to start a business near a port, as time goes, cost efficiency from lesser transportation cost, worker, and time in turn provides higher profit. In addition, by having distribution warehouse centered around a port may bring more benefit for the company and even higher profit for the company by establishing the office right at the center of its logistical activities.
- Cut goods delivery time
The closer the distance of a factory with the port or goods distribution center then, the shorter the time required to distribute the goods. This time efficiency in turn will increase the company’s profit.
- Better access
Industrial estates near a port have better access as ports are mostly managed by government with better and quality facilities inside and outside the port. The facilities include toll road, national road, accessible train railway, etc. which can be utilized to develop business.