When it comes to Logistics, Greater Philadelphia offers businesses a clear, competitive advantage over most other major United States metropolitan areas with three major ports, interstate highways, world-class international airport, a large number of distribution and warehouse facilities and proximity to the large northeastern U.S. market.

A 2007 analysis by Select Greater Philadelphia (Select) shows the competitive advantages of Greater Philadelphia for the Logistics sector:

• Home to approximately 46.1 million people live within a 200-mile radius of Center City Philadelphia with a total income of $1,344.3 billion.
• Approximately 98 million people, or 31.9% of the total U.S. population, lived within a 600-mile radius of Center City Philadelphia in 2007.
• A connecting point for different modes of transportation — rail, highway, air, water, and pipelines.
• Well-served by interstate highways run north-south (e.g., I-95, the Delaware and NJ Turnpikes) and east-west (e.g., I-76/ Pennsylvania Turnpike, and close proximity to I-78 and I-80).
• Home to one of the few major ports served by three Class 1 railroads.
• The three Class 1 railroads are Norfolk Southern, CSX Transportation, and the Canadian Pacific. All three lines are capable of accommodating double-stack trains. The three rail lines pass along the northern boundary of o the Philadelphia Navy Yard in South Philadelphia, ending in a very large rail yard located immediately west of the Packer Avenue Marine terminal.
• The main channel of the Delaware River, currently maintained at a depth of 40', will be deepened to 45' in several years up river to just above the Ben Franklin bridge.
• Home to more than 50 major distribution and warehouse facilities located with 75 miles of the Port of Philadelphia, including a number of large facilities in southern New Jersey along the New Jersey Turnpike and along I-78 in the Lehigh Valley (one hour driving time north).
• A 2007 study by the Philadelphia Regional Port Authority identified over 250 distribution facilities located within its immediate vicinity, including 60 major facilities.
• The Philadelphia International Airport is served by 29 airlines that offer 590 non-stop flights each day to 124 destinations; 60 of which are daily nonstop flights to 38 international destinations.
• Developing plans to expand the Philadelphia International Airport (PHL).
• PHL home to a major United Parcel Service (UPS) hub.
• Land is available for the expansion of the region's port facilities; one of the few major U.S. ports with expansion capacity.
• Additionally, large parcels of land are available for building distribution centers.
• Easy access to New York City — the financial capital and to Washington D.C. — the regulatory capital via Amtrak.

Expansion Activity

• Norfolk Southern Corporation has plans to expand its rail yard at the Navy Yard in South Philadelphia, PA, by 15 acres as part of an eventual 2,500-mile, high-speed rail route aimed at getting more freight onto trains and away from congested highways. Read more...
• A new Paulsboro Marine Terminal project is in the works. The new Terminal, in Gloucester County, NJ, will feature a marine terminal with three 40-ft deep berths and a 20 ft. deep barge berth, warehouse space and an access overpass. Phase I will consist of building two 40-ft ship berths and 100,000 sq. ft. of warehouse space and an access road and bridge. Read more...

Definition of Logistics

Select's definition of Logistics does not include the retail trade sector. However, it should be noted that logistics activities are performed by many large, vertically- integrated retail chains that operate their own storage and distribution facilities, and some such as Wal-Mart also operate their own truck fleets.

Logistics as defined by the Council of Supply Chain Management Professionals (CSCMP) is that part of a supply chain management that plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information from point of origin to point of consumption for the purpose of conforming requirements.

The Council identified the following types of activities that comprise Logistics management:

Inbound and outbound transportation management

• Fleet management
• Warehousing
• Materials handling
• Order fulfillment
• Logistics network design
• Inventory Management
• Supply/demand planning, and Management of third party Logistics services providers

Sub-Sectors Comprising Logistics by NAICS Codes

Download the Sub-Sectors Comprising Logistics by NAICS Codes Excel Document