Global Logistics Development Partners | GLDPartners and GLDPartners Mobility Solutions is working at the very dynamic intersection of supply chain efficiency, logistics hub development and mobility technology, and we are witnessing tremendous opportunity in the development of far more efficient and successful logistics hubs. Increasing acceptance of autonomous vehicles is opening up opportunities to sell additional mobility services, with autonomous logistics one of the big winners.

Today’s pandemic has produced great stress across the supply chain world and the extended period of recovery will test whole supply chain systems.  From the market perspective of shippers in sectors ranging from electronics to automotive to food products, the ability to provide extremely efficient logistics asset-based supply chain solutions is critical.

The key is the ability to integrate shipper supply chain assets (inventory management warehouse, forward deployment center, returns management facility, production or assembly factory) with a next-generation logistics facility (transport service to/from, facility design, scalable and robust infrastructure and automated services).  There are very few seaports or airports that have had the ability to accomplish that as they are almost always adapting legacy design, infrastructure and business models.  The same can be said about inland ports to a large degree as most are fairly straight-forward transport mode transfer stations.

Projects

Currently, we’re working on two projects that are aiming to be global modals for redefining how an integrated seaport connected truck-rail logistics hub is built and operated.  The proposed California Inland Port is aiming to be an advanced transport system linking the Ports of Long Beach and Los Angeles to a market that includes over 14M people, 1B square feet of warehouse space and supporting 1.1m TEUs of container volume.  The California Inland Port District envisions “industrial centers/logistics hubs” in the 500 mile-long stretch between Los Angeles and San Francisco/Sacramento.

The other project is the Utah Inland Port which is a giant 15000 acre project that is currently planning the development of the greenest, most efficient logistics hub in the world.  Sitting in a very strategic Western US crossroads location, the site is at the intersection of two important US Interstate highways and has a large rail intermodal facility (UPRR) and what is essentially the largest current ground-up airport construction project in the world.  When complete the Utah Inland Port will be a “city within a city” hosting over r50,000 employees working in clean logistics and technology production.  The project is envisioning a range of automated and alternative propulsion system cargo movement capabilities, sophisticated backbone telecommunications/data transmission and clean energy use and production.

Both of these projects success will be in some large part defined by their ability to offer an array sophisticated logistics services that speed cargo movement, lower costs and increase reliability.  Providing an array of technology and services for new projects like this can yield a tremendous competitive advantages for shippers by providing step-change enhancements to supply chain transparency, create an entirely new level of nimbleness to react to unexpected situations and support a new level of supply chain resiliency capabilities.  The integration of sophisticated logistics capabilities combined with onsite facility location options provides an all-in solution for supply chain managers designing tomorrow’s strategy blueprint.

Projects like these highlight where the market is heading and offer a window to the type of services that will be required to support.  This article in EFT (Eye For Transport) highlights the growth in the autonomous logistics services market.

Autonomous logistic services market is predicted to grow 41.7% per year over next decade

By editor on May 20, 2020

Increasing acceptance of autonomous vehicles is opening up opportunities to sell additional mobility services, with autonomous logistics one of the big winners

Autonomous vehicles business models

Frost & Sullivan predicts that an explosion of new entrants to the Autonomous Vehicle (AV) market will create a major market for derived services that will drive the AV services market from $1.1 billion in 2019 to $202.5 billion in 2030 at a CAGR of 60.1%.

Within this, the autonomous logistic services market is predicted to develop at a CAGR of 41.7% from 2019 to 2030, driven by consumer demand for faster delivery.

The mobility services market is expected to grow from $0.01 million to $22.41 billion in the same timeframe, showcasing the most drastic cluster for expansion in the next decade.

“Autonomous vehicles can be used to gather data about passengers that can be leveraged to optimize vehicle routing and demand generation,” noted Kamalesh Mohanarangam, Mobility Program Manager at Frost & Sullivan. “Between 2020 and 2030, OEMs will begin consolidating the car data ecosystem, and vehicle usage data will become the new currency for value creation amongst B2B/B2C entities.”

“For an autonomous technology to be viable, it needs to have a profitable and sustainable business model,” said Manish Menon, Mobility Industry Analyst at Frost & Sullivan. “The key challenge is to quickly evolve from the current sales and leasing business models to investing in the assets and capabilities that can support NextGen solutions in the autonomous mobility space and its associated services. This is especially pertinent for OEMs as revenues from vehicle sales and leasing will drastically decrease.”

Frost and Sullivan suggest that OEMs and service providers operating in this sector can find opportunities in:

  • Realigning business models along the lines of internet and software companies for better implementation of subscription or pay-as-you-go models.
  • Mining shared data from OEMs and data aggregators to create new service offerings, analyze efficient vehicle routing, and ensure optimal fleet utilization.
  • Collaborating with governments to integrate planned rapid transport systems with autonomous taxi and shuttle services.
  • Partnering and investing in AD technology companies to optimize the movement of goods within the supply chain ecosystem.
  • Integrating real-time data tracking systems to enable value-added, in-vehicle, on-demand services suited to passenger preferences.

About Global Logistics Development Partners | GLDPartners works with global shippers on supply chain strategy and site location planning and develops projects at and around strategic seaport, inland port and airport logistics assets.  The firm is based in the US and conducts project work North America, Asia and Europe.  To learn more about Global Logistics Development Partners | GLDPartners.

About GLDPartners Mobility Solutions specializes in testing and development facilities, infrastructure project development, mobility sector economic development strategies and regional mobility strategies. Please see the company’s website: GLDPartners Mobility Solutions.