The Developers' Guide to Planning and Designing Logistics Centers in CAREC Countries

ASIAN DEVELOPMENT BANKThe Developers’ GuiDe To planninG anD DesiGninG loGisTics cenTers in carec counTriesAPRIL 2023 ASIAN DEVELOPMENT BANKThe Developers’ GuiDe To planninG anD DesiGninG loGisTics cenTers in carec counTriesApril 2023 Creative Commons Attribution 3.0 iGO license (CC BY 3.0 iGO)© 2023 Asian Development Bank6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, PhilippinesTel +63 2 8632 4444; Fax +63 2 8636 2444www.adb.orgSome rights reserved. Published in 2023. ISBN 978-92-9270-120-8 (print); 978-92-9270-121-5 (electronic); 978-92-9270-122-2 (ebook) Publication Stock No. SPR230134-2 DOI: http://dx.doi.org/10.22617/SPR230134-2The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned.By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this publication, ADB does not intend to make any judgments as to the legal or other status of any territory or area.This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound by the terms of this license. For attribution, translations, adaptations, and permissions, please read the provisions and terms of use at https://www.adb.org/terms-use#openaccess.This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source, please contact the copyright owner or publisher of that source for permission to reproduce it. ADB cannot be held liable for any claims that arise as a result of your use of the material.Please contact pubsmarketing@adb.org if you have questions or comments with respect to content, or if you wish to obtain copyright permission for your intended use that does not fall within these terms, or for permission to use the ADB logo.Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda.Notes: In this publication, “$” refers to United States dollars. ADB placed on hold its assistance to Afghanistan effective 15 August 2021. ADB Statement on Afghanistan | Asian Development Bank (published on 10 November 2021). Manila. ADB recognizes “China” as the People’s Republic of China, “Korea” as the Republic of Korea, and “Kyrgyzstan” as the Kyrgyz Republic.Cover design by Francis Manio. Photos by Ignasi Ragas Prat. iiiCONTeNTSTABleS, FIGUReS, AND BOxeS vPReFACe viABBRevIATIONS viiexeCUTIve SUMMARY viii1 INTRODUCTION 11.1 Why This Guide? 11.2 What Are the Specificities of CAReC Countries Regarding logistics Centers Development? 12 CONCePTS AND RATIONAle 32.1 The Importance of logistics to the economy 32.2 logistics Centers’ Concept and Purpose 43 TeChNICAl FeATUReS OF lOGISTICS CeNTeRS 103.1 Warehouses, Functions, and locations 103.2 Conceptual Design and layout 203.3 Warehouses 253.4 Other Infrastructure 323.5 Summary 344 PROjeCT PRePARATION, IMPleMeNTATION, AND OPeRATIONS 354.1 Road Map to Implementation 354.2 The Developer’s Business Model 404.3 Operations and Management of logistics Centers 464.4 Typical Issues and Pitfalls 475 IMPACTS OF lOGISTICS CeNTeRS 525.1 economic and Social Impacts 525.2 environmental Impacts and Mitigation Strategies 54 ivContents6 lOOKING AheAD 566.1 What Industry Trends Will Shape logistics Facilities Development? 566.2 What Are the Boundary Conditions and Regulatory Trends? 576.3 What Opportunities exist for CAReC Countries? 576.4 What Developments Should Be Avoided? 586.5 What Are Suggested Next Steps for the CAReC Program? 58 APPeNDIxeS 1 logistics Centers in CAReC Countries 59 2 examples of logistics Centers in europe and the United States 64 vTables 1 Drawbacks of logistics Centers for Companies and hosts 8 2 Five Principles to Inspire the layout of a logistics Center 34 3 Features and Recommendations for various Public–Private Sector Combinations 42 4 Pros and Cons of Sale and Rent 44 5 Possible Services at logistics Centers 45 6 Investment Ratios in logistics Centers 52Figures 1 Policy levers to Improve logistics Performance 4 2