In order to have an effective supply chain structure, many free trade zones are located adjacent to airports or seaports, such as Airport Logistics Park of Singapore (ALPS) and Yangshan Free Trade Port Area.

Other means of fulfilling supply chain structure of free trade zone, science park or hi-tech park are ensuring high-way / smooth access of transport to airports or seaports, designated SME zone or logistics zone within the industrial parks.

To be eficient and more competative in Supply Chain Management (SCM) mainly in logistic areas, the infrastructure and tool play an important roles. The more closer your  logistics facilities such as tranportstaion and warehouse to location such as airport, sea port will entirely help to improve the efficiency. However the factors of government rules and regulations, governance, safety and sustainable developement would need to be put into consideration. The impact will be huge if those factors has not been taken into consideration before or during the operation of the FTZ.

Hi Goitom Kibrom.

I apologize have a different sight for the answer.

Ports and Airports locations are not the leading restrictions to consider but the consumption centers, both; for local end importers and for the region foreign clients as well, are the ruling ones.  

Any study has to abide the findings once geo-located all of them and maped all the roads to minimize the transportation costs from the free trade zone to the consumers and importers, times and costs indeed, because the leg from the port or airport to the free trade zone will only mean for the administation a hard negotiation to get a very low rate outcoming of large volumes, and themselves, airports and ports, are for the foreign consumers point of view only other clients warehouses where deliverance of the goods is to be achieved.

Dry Docked Logistic Centers will be more efficient for the customs clearance of the goods.

Several models for the importation process confirm this and are the basis for appraisals performed later than the goods are in the importers warehouses.   Goods are not kept into the ports facilities but released on declarations for Customs purposes and most of the time there are a set of penalties charging the goods remain in port ovedue.

Pls. consider my study on the logistic of the potatoes for Galapagos as a fair focused essay of what i mean in the previous lines, that study found that despite ports and airports are in Guayaquil, is more convenient having the warehouse for processing the potatoes prior shipping to Galapagos in other location where is geographically more appropriate to get less time in the transportation reaching the end buyer fresher potatoes have less time from the moment were croped, and indeed that mean more satisfaction and quality at lower cost.

Rgds.,

Kléber Cervantes Z. 

Thanks for your detailed and adriot prespective. Indeed, the time you spent on adjusting your comments will add alot on my study.

The topic is of great interest to academic scholars and can be addressed by taking into account logistics amenities which include warehouse design cross docking and effective transportation. Apart from this Govt regulations in free trade zone will impact SC  performance of such start ups.

Free trade zone are also called foreign trade zones formally called  free ports. In these areas goods are landed, manufacture, packed and repacked and exported freely without customs authorities's intervention. In this situation goods are moved to the located zones subject to the prevailing customs duties. Free trade zones set or established at seaports and international airports, in most cases with trade advantages. An effective supply chain strategy for implementing a free trade zone could be enforced with effective transportation system.