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Co-location is one form of influence that transportation has on the location of economic activities. In this case, the transport terminal such as a port, an airport, a rail station, or an intermodal rail yard provides a multiplying effect within a co-location zone. This zone is an adjacent area within

Source: adapted from Markusen, A. (1996) “Sticky Places in Slippery Space: A Typology of Industrial Districts”, Economic Geography, Vol. 72, No. 3, pp. 293-313. The above figure portrays three types of manufacturing clusters (or districts):

Agglomeration economies are a powerful force that helps explain the advantages of the “clustering effect” of many activities ranging from retailing to transport terminals. There are three major categories of agglomeration economies: Urbanization economies. Benefits derived from the agglomeration of population, namely common infrastructures (e.g. utilities or public transit), the

Weber’s location triangle can be solved by the generation of cost surfaces. This example assumes that to produce 500 tons of a good to be sold at market M, 1,000 tons and 800 tons of raw materials are required at S1 and S2. Considering transport costs of $1 per ton-km,

Alfred Weber’s work (1909) is considered the foundation of modern location theories and a basic P-median location problem. One of its core assumptions is that firms will choose a location minimizing their total costs through a set of simplifications. Location occurs in an isolated region (no external influences) composed of

Conventionally, two major elements of the transport system provide a level of accessibility; nodes and links. The nodes (A), related to transport terminals, and the links (B), related to transport infrastructures, have a gradient-like expression of accessibility that has been considered in location theories since Von Thunen. This gradient can

An economic activity can remain operational if the relationship between the costs of its inputs and the revenue from the sale of its outputs is positive. It is at least able to break even. Otherwise, it needs to be subsidized, implying a transfer of wealth from another sector. A location

Activities involved in production (manufacturing), distribution (transportation), and consumption (retail) are constantly seeking economies to improve their margin, competitiveness, and increase their market share. This is commonly done by opting for specific locations and types of facilities. The main five economies are: Many of these economies are interdependent.

Location factors can be subdivided into three general functional categories, each related to a scale of analysis: The suitability of each factor depends on the nature of the activity for which locational behavior is being investigated. This explains the highly diverse locational behavior of firms in the global economy. Firms