Special Economic Zones in the OIC Region:
Learning from Experience
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indicate the importance of coordination between zone authorities and national investment
promotion agencies in terms of developing targeted promotional policies.
6.4 Key Physical / Spatial Factors
6.4.1 Proximity to Transportation Nodes
One of the most common factors characterising SEZs that have not been successful is poor site
location, often determined through political rather than economic and technical considerations.
Examples of this include the Philippines Bataan EPZ. Poor site location can often result in heavy
capital expenditure requirements which governments are unable to support adequately.
Farole, Baissac and Gauthier (2012) 126 suggest that there are broadly two key principles to
locational choice for SEZs; economic decentralisation (or dispersion) and economic
concentration. It is observed that SEZs are typically poor decentralisation performers unless the
location has a natural competitive advantage (such as in the case of Tanger Med Zones).
Evidence suggests that zones are more successful when they exploit pre-existing advantages
that are the products of concentration, such as the presence of existing infrastructure such as
ports or airports which offer international connectivity.
Site selection should considered early on in developing a national SEZ strategy and should utilise
a number of key criteria. These criteria should be linked to target industry-sectors and
associated investors and tenants, physical routes to key markets, access to feedstocks, raw
materials, other productive inputs and supply chains, access to labour markets, access to urban
centres and associated services. One of the most important considerations is proximity to or
access to major trade related infrastructure such as sea ports, airports, intermodal freight
systems and transport services more broadly.
Examples from OIC Member Countries
Morocco – Tanger Med Zones
The Tanger Med Zones undertook a number of detailed background studies to establish the
appropriate geographical location for the development of the port and industrial platforms in
order to capitalize on the regions comparative geographic advantages. This was part of the
wider masterplan and vision for regional development of industrial zones. The vision was
heavily predicated in the establishment of a successful port facility in which to drive growth in
export orientated industries.
126 Farole, Baissac & Gauthier (2012) Special Economic Zones: A Guidance Framework for Policymaking.