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Re: None

Monday, 02/19/2007 3:34:36 PM

Monday, February 19, 2007 3:34:36 PM

Post# of 3268
A container storage and repair facility in order to be competitive must be in a reasonable proximity to it's customer base. Railway intermodal Yards, port facilities, warehousing and distibution centers. The nature of the transportation business sometimes causes these locations to change, even very large rail hubs are often leased for this reason. Something as simple as the relocation of an expressway off ramp could dramatically reduce accessability and increase drayage costs to a customer. A piece of property that ends up being in the middle of nowhere is of very little value to such a business.
Leasing this type of property only makes good business sense. The storage of containers really only requires flat stable ground, and perhaps a slight degree of protection from wind. Repairs could be affected with mobile units while shop facilities are relocated. I understand why they might want to own administrative offices because the same factors do not apply, and it would give you a larger control over costs.

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