Co-Location Synergies: Specialized Versus Diverse Logistics Concentration Areas

Purpose: The purpose of this paper is to contribute to the understanding of spatial concentration of logistics firms by empirically analyzing synergies through co-location and investigating whether co-location of logistics establishments in specialized logistics concentration areas results in benefits compared to co-location in diverse logistics concentration areas. Methodology: A survey among managers of 128 logistics establishments located in logistics concentration areas was used to test for differences between synergies through co-location on specialized versus diverse logistics parks. Findings: The findings show that logistics firms co-located on fresh logistics parks more often share knowledge, combine transport and storage capacity, and trade products last minute than other co-located logistics firms do. Research implications: This research shows that there are synergies through co-location of logistics activities on specialized logistics parks. Managers of logistics companies may need to take these benefits into account in location decisions, academics in facility location models, and policy makers in spatial planning. Originality/value: Although anecdotic evidence suggests that co-location of logistics activities can bring several benefits to the co-located logistics companies and hence, can be important to incorporate in the location decisions of these companies, these benefits are not (much) empirically researched before. This paper analyzes synergies through co-location of logistics establishments on specialized and diverse logistics parks.