Central Location Drives Success

Mar. 2, 2010  |  By: Chris Gutierrez  |  Category: KC SmartPort
Tags: distribution, freight, intermodal, location, logistics

The Kansas City region has the historic advantage of being centrally located within the U.S. and within North America.  The region has been called the most geo-central U.S. city.   Our history was built around this premise from the wagon trains with access on the Missouri River, to the first rail bridge over the Missouri River (and some argue the first section of the interstate system was opened here in the KC region, too).  The map below shows this central location in today’s environment.

Regional leaders from The Kansas City Area Development Council, The Greater KC Chamber Chamber of Commerce and the Mid-America Regional Council (MARC) focused their attention on this location advantage in relation to the region’s transportation infrastructure in several studies, but most notably the Mid-Continent Tradeway Study.  The study confirmed that a large part of the economic engine in the KC region is tied to transportation related industries.  The study also led to the formation of Kansas City SmartPort.

KC SmartPort is the regional organization focused on growing the transportation industry and making it more competitive.   Since its inception in 2001, KC SmartPort has led the effort in changing the industrial real estate market in regards to freight based projects.  In the past, a 200,000 sq. ft. industrial distribution center was a big project (it is still an important project today).   In the last 2-3 years, the region has recruited industrial distribution centers in the range of 400,000 sq. ft. to 1.1 million sq. ft.  The larger distribution centers have been attracted to the KC region for several reasons:

• Our central location allows for transportation cost advantages over other cities.
• Intermodal rail infrastructure in the KC region has expanded and continues to expand with several intermodal logistics parks being developed in the region.
• The city, county and state leaders realize the benefits of these type projects within their jurisdictions and have embraced the projects allowing companies to select a location and take possession of the building in record time.

Moving forward, KC SmartPort will work with KCADC and our community partners to continue to attract distribution centers to the region.  A Regional Freight Outlook was just completed that gives KC SmartPort an updated look at the freight that comes into and goes out of this region and how to compete to attract additional distribution facilities to KC.

Your opinions are important to me. What do you feel are the KC region’s best opportunities with freight based projects?