Intermodal Transportation and Integrated Transport Systems: Spaces, Networks and Flows

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Intermodal Transportation and Integrated
Transport Systems Spaces, Networks and Flows

• Jean-Paul RodrigueAssociate Professor, Dept. of
  Economics Geography, Hofstra University, New
  York, USA
• Theres no business like flow business
• Email ecojpr_at_hofstra.edu
• Paper available at
• http//people.hofstra.edu/faculty/Jean-paul_Rodrig
  ue

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Spaces, Networks and Flows in a Global Economy

• Globalization a clustered and spatially diffused
  process
• In terms of production and consumption.
• Distribution is reconciling spatially diverse
  demands for raw materials, parts and finished
  goods.
• The backbone of globalization
• Networks are established to support distribution.
• Nodes are regulating the flows within networks.
• As international trade increases, nodes have
  become strategic locations.

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The Emergence of a Nodal Space First Phase

• The Transshipment Node
• Conventional international trade environment.
• Some mobility of raw materials, parts and
  finished goods.
• Many impediments (tariffs and regulations).
• Trade as an attempt to cope with scarcity.
• Nodes as constrained locations for transshipment.
• Load break functions.
• Industrial clusters next to rail yards.
• Port industrial complexes.

Industrialcluster
Load Break
Warehousing lag
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Harbor Types of the World's Large and Medium
Sized Ports
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The Emergence of a Nodal Space Second Phase

• The Intermodal Node
• Higher mobility of the factors of production
  (particularly capital).
• Better realization of comparative advantages
  (mainly labor).
• Strengthening of the transactional and legal
  setting.
• Emergence of intermodal transportation, mainly
  containerization.
• Nodes as locations promoting the efficiency of
  different transport networks.
• New terminals and new locations.
• Increased velocity of the flows.

First mile
Composition
Transfer
Transport Chain
Interchange
Decomposition
Last mile
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The North American Landbridge
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The Emergence of a Nodal Space Third Phase

• The Logistical Node
• Fast growth of international trade with the full
  realization of comparative advantages.
• Geographical and functional integration of
  production, distribution and consumption.
• Commodity / Supply Chains.
• Transportation integrated in the production /
  retailing process.
• Global Production Networks (GPN).
• Nodes as logistical poles where value added
  activities are performed.
• Entirely new nodal locations.

Flows
Stage
Network
Parts and raw materials
Bulk shipping
High volumes Low frequency
Unit shipping
Manufacturing and assembly
Supply Chain
Average volumes High frequency
Transport Chain
Distribution
LTL shipping
Low volumes High frequency
Market
Market
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Traffic at the 50 Largest Container Ports, 2003
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Nodes as Central and Intermediate Locations

• Gateways hubs
• Nodes offering an accessibility to a large system
  of circulation.
• Obligatory (semi) points of passage.
• Convergence of transport corridors.
• Centrality and intermediacy.
• Gateways
• Favorable physical location.
• Intermodal and stable in time.
• Hubs
• Transmodal and subject to change.
• Commercial decisions.
• Delays vs. frequency of services.

Intermodal
Corridor
Gateway
Global
Local
Regional
Centrality Intermediacy
Transmodal
Hub
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Modal Gateways Spaces of Flows

• Context
• The logistical node is being regionalized.
• Land
• Linked with borders.
• Often a simple transit function.
• Respective specialization.
• Air
• Linked with metropolitan areas.
• Centrality and intermediacy.
• Maritime
• Linked with locations (sites) and hinterlands.
• Integration with inland freight distribution
  centers.

Land
Logistics
Border
Manufacturing
Air
Maritime
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Major US Modal Gateways, 2004
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The Three Main Gateways of North America
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Integrated Transport Systems From Fragmentation
to Coordination
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Integrated Transport Systems Intermodal and
Transmodal Operations
Intermodal operations
Transmodal operations
Intermodal Terminal
DCs / CD
ROAD
Transloading
Thruport
RAIL
Port container yard
On-dock rail
Ship-to-ship
MARITIME
Integrated Freight Transport System
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Three Emerging Nodal Spaces Supporting Transmodal
Flows

• Transmodal Road
• Assumed by distribution centers.
• High potential for added value.
• From inventory management to flow management.
• Transmodal Rail
• Least investigated segment.
• Containerization forced integration between rail
  systems.
• Transmodal Maritime
• Offshore hubs.
• Transshipment-only terminals at intermediate
  locations.
• How transmodal nodes are inserted within freight
  distribution systems?

Modal segment
Modal segment
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Cross-Docking Distribution Center
Before Cross-Docking
Distribution Center
Suppliers
Suppliers
LTL
Customers
Receiving
Sorting
After Cross-Docking
Shipping
TL
Cross-Docking DC
TL
Customers
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UPS Willow Springs Distribution Center, Chicago
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Rail Transmodal Operations The Thruport

• Market fragmentation
• Mainly retail / consumption related.
• Reconcile the high volume requirements of markets
  with the time sensitive requirements of
  distribution.
• Ownership fragmentation
• Rail companies have their facilities and
  customers.
• They have their own markets along the segments
  they control.
• Interchange is the major problem.
• The distribution potential of each operator is
  expanded.
• Network alliances.

Thruport
Gateway
D
C
A
B
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13.98 M TEU
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Mi-Jack Stack-Packer (Thruport Terminal)
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Offshore Hubs A New Nodality

• Offshore hubs
• Dilemma between market coverage and operational
  efficiency.
• An adaptation of shipping routes.
• Improvement in the frequency and the timeliness
  of services.
• Emergence of new nodes at strategic locations.
• Major factors
• Location.
• Depth.
• Land availability.
• Labor costs.
• Hinterland access.
• Ownership.

Pendulum Route B
Short SeaShipping
Offshore Hub
Pendulum Route A
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Ports with the Highest Transshipment Function,
2004
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Las Palmas At the Crossroad of Transatlantic
Shipping

• Emergence of an offshore hub
• Above 600,000 TEU (2005).
• An intermediacy node along major maritime routes
  and major markets relay transshipment.
• Deviation effect
• Minimal for circum-Africa / Western Europe,
  Mediterranean / Central America, Europe-Med. /
  South America.
• Algeciras
• Biggest competitor.
• Net advantage (low deviation) for the
  Mediterranean / North America route).

Las Palmas
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Global Port Operators Using Nodes to Control
Global Flows

• A change in emphasis
• Conventional perspective based on geostrategy
• Whosoever commands the sea commands trade
  whosoever commands the trade of the world
  commands the riches of the world, and
  consequently the world itself. Sir Walter
  Raleigh (c1610).
• An emerging perspective based on accessibility,
  flows and commercial interests.
• Controlling terminals and the major gateways of
  the global economy
• Through alliances and investments.
• Deriving wealth through added value extracted
  from global flows.
• A nodal strategy where stake holding is based
  on locations along major commodity chains.

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Global Port Operators Using Nodes to Control
Global Flows

• Horizontal integration using fixed assets
• Gain a foothold in a wide variety of markets.
• Financial assets.
• Managerial expertise.
• Gateway access.
• Leverage.
• Traffic capture.
• Global perspective.

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Major Port Holdings, 2006
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Conclusion Emergence of a Global Nodal Space

• The logistical node
• Central and intermediate locations gateways or
  hubs.
• Geographical and functional integration brought
  by the emergence of global production networks
• Extension and complexity.
• Control and synchronization of flows.
• Effectively captures and adds value within global
  supply chains.
• Competition (between and within nodes).
• Challenges and opportunities
• Congestion (offshore hubs and port
  regionalization).
• Integration (intermodal and transmodal).
• Energy prices (logistical friction).
• Macro-economic changes (trade imbalances).