What is a freight village?
A freight village is a logistics centre where goods transported on different modes are collected, handled, picked and prepared for further transport. It may also perform functions such as packaging, warehousing and other services. The central logistics location ensures the modes of transport are effectively utilised and simplifies interactions and the division of labor between transport companies, logistics service providers as well as industrial and commercial businesses. Freight villages also serve as an interface between local and long-distance traffic by combining partial loads into larger ones or splitting big loads into smaller ones. In combined transport, freight villages play a particularly big role in strengthening road-rail collaboration. Freight villages are normally located in the industrial districts of large cities with convenient access to local and long-distance transport. They have to combine at least two modes of transport to count as a freight village. Freight distribution centres, on the other hand, are usually operated by a single company that handles the goods and allocates them to the best possible modes of transport.
Pros and cons of freight villages
As intermodal transports become more prevalent, a freight village provides an ideal environment for capitalising on the advantages of the various modes of transport, establishing long-term intermodal transport chains and tying logistics infrastructure together. In addition, freight villages create logistics structures that accelerate the division of labor among companies and give medium-sized companies the opportunity to adapt to market requirements by cooperating with partners. However, a freight village can only be built in economically strong regions since they require high transport volumes and high overall capacity utilisation. The construction of a new freight village will also cover more land with asphalt and generate a lot of traffic.