There are many types of warehouses on the market. Each of them has different characteristics, different purposes, and different users. There is also a type of government warehouse. This is quite a niche topic, but we should explain what Government Warehouse is and what it is for.
Government Warehouse is a type of Warehouse that is owned, managed, and controlled by Central, State, or Local Government. It is used to store Government goods but can be also rented by private entities. In some situations can be offered as a place to store food or agricultural products.
In this article, we will introduce the roles of Government Warehouses in the national economy.
What is the role of Government in Warehousing?
The Government has its own storage facilities, which it uses for its own economic purposes. However, they can be made available for public rental in places where there are no suitable warehouses or any other space where commodities can be stored by private entities.
An example of the usage of the Government Warehouse may be a situation in which we have a sudden cataclysm, e.g. an ecological disaster, hurricane, flood, Fires. Then the Government Magazines can become a temporary storage place for goods such as food or agricultural products. To support local stability.
What are the advantages of a Government Warehouse?
The main advantages of Government Warehouses are:
Cheap storage rates – The rates are comparatively lower in such Warehouses than for public warehouses.
Good storage conditions – In Government Warehouses, more order and cleanliness are concerned.
Therefore, the storage conditions can be much better here than in public warehouses.
Local support – Possibility of making the warehouse available for the public in crisis situations, for example for securing local food supplies in the event of weather disasters or other crisis events.
Additionally, Government Warehouses support local farmers and small businesses, especially in remote locations in the country where the warehouse infrastructure is underdeveloped. Often, such a warehouse is the only place in the area where you can store goods.
Clear and understandable terms of use – The terms of the contract under which you rent the storage space are certain, clear, and clear due to the fact that the authorities are on the other side of the contract.
You can be sure that the warehouse owner will not suddenly raise your rent. Thanks to this, you can better plan your company’s expenses and budget.
Secure place to store goods – We can rather be sure that the government will keep an eye on its goods, and will also keep an eye on the products that we keep with them.
Usually, the service in Government Warehouse works according to strict rules and government goods are often better protected than goods in private warehouses.
What is the difference between a Public Warehouse and a Government Warehouse?
At first sight, the difference is small, but the biggest difference can be noticed in the way of managing the warehouse and in the rules on which the storage space is offered.
Public Warehouse’s purpose is to rent storage space to other market Entities. The Government Warehouse has intended for Storage mainly Government goods and then additionally to rent leftover storage space to private companies.
In Government Warehouse, as in the case of Public Warehouse, there are specific rules on which we can store our Goods. However, in Public Warehouse, these rules are more official and strict.
What is a State Warehouse?
State Warehouse is a type of Government Warehouse that stores goods such as confiscated contraband. Such goods are then sold at special auctions that are regularly organized by the state authorities.
Who can Use the Government Warehouse?
In fact, the Government Warehouse is designed to hold goods that are the property of Local or State Governments. However, it is often the case that the warehouse is not fully filled with government goods.
In such a case, it makes sense from an economic point of view to offer the rest of the warehouse to other market players in return for a fee. And that’s what Government does with excess storage space.
This solution can be used by all players on the market, regardless of whether you are a small local entrepreneur who wants to store goods from his store, a farmer who needs to protect his crops, or the owner of an eCommerce business, or a public agency store.