Public warehouses

Business studies study module

These are warehouses owned individuals or organizations who do business renting space. To those traders who are in need of storage facilities to store goods temporarily. They have the following characteristics;

  • Are owned and operated individuals or companies who do not use them for storing their own goods.
  • Are open to any member of the public who wish to rent storing space for their goods
  • The customers pay on the basis of space rented and the period of time required to store the goods.
  • They are often situated near terminals as airports, sea-ports and railway station and industrial areas. This facilitates the movement of goods in and out of the warehouse.
  • The rent paid includes charges for insurance and other services i.e. goods are insured against loss or damage as a result of fire or theft while they are still in the warehouse.
  • They provide other services apart from storing the goods e.g. grading,packaging,preparing export samples, preparing market reports and clerical documents
  • Imported goods can be sold while they are still in the public warehouse. If such a transaction takes place the goods may change ownership without being physically moved out of the warehouse. This becomes possible if the importer has signed a document called ‘a warehouse-warrant’ (which is a negotiable instrument out of order), it is issued the new owner after the transaction has taken place.

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