Topic 5 – Intermodal Transport Systems A – Intermodalism B – Containerization

A – Intermodalism Read section 1

Intermodalism and Transmodalism Read this content Intermodalism Origin Destination Road Rail Maritime Transmodalism Origin Destination Rail Rail What is the fundamental difference between intermodal and transmodal transportation?

Transloading facility Distribution Center/ Cross-docking Integrated Freight Transport Systems: Intermodal and Transmodal Operations Transloading facility Road Distribution Center/ Cross-docking On-dock rail Intermodal operations Rail Thruport Maritime Port container yard Intermediate Hub Transmodal operations

Conditions for Intermodal Transport Read this content Conditions Load Unit Intermediate and finished goods in load units of less than 25 tons. Modal Continuity Sequence of connected infrastructure; an intermodal transport chain. Transport Distance Distances above 500 km (longer than one day of trucking) usually require intermodal transportation. X Cargo Value Suitable for intermediate cargo values. Low and high value shipments are usually less suitable. Frequency of shipments Cargo flows need to be continuous and in similar quantities. Explain under what conditions intermodal transportation is used.

Outcomes of Intermodal Transport Read this content Outcomes Lower Total Transport Costs From economies of scale and the use of more effective modes and intermodal operations. Modal shift Each mode according to their respective time and cost advantages. Consolidation / Deconsolidation The requirement to consolidate and deconsolidate load units at intermodal terminals. Higher load factor Less LTL and more TL. Better utilization of existing capacity. Less empty backhaul Less vehicle-km of empty backhauls due to modal shift, higher load factor and consolidation.

Pallets waiting to be loaded in a container, Shenzhen, China Read this content

Multimodal and Intermodal Transportation Read this content Multimodal Point-to-Point Network Intermodal Integrated Network C C A A B B Transshipment Rail Road D D Transshipment F F E E Explain how an integrated intermodal network can be a more efficient form of transportation.

Distance, Modal Choice and Transport Costs Road C3 Transport costs per unit Rail Maritime D1 D2 Distance Read this content

Freight Transport Costs per Ton-Mile (in 1995 dollars) Read this content Source: Ronald Ballou (1998) “Business Logistics Management”, 4th Edition, Upper Saddle River, NJ: Prentice Hall.

Average Length of Haul, Domestic Freight in the United States, 1960-2010 (in miles) Read this content Source: RITA/BTS. Table 1-38: Average Length of Haul, Domestic Freight and Passenger Modes. http://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/publications/national_transportation_statistics/html/table_01_38.html

Modal Share of Freight Transportation, Selected Countries, 2008 (in % of ton-kms) Why Europe, the US and Japan have different composition of transport modes? Read this content Source: AT Kearney https://www.atkearney.com/documents/10192/295992/Russian_Rail-Containers-and_Growth.pdf/010bafbb-54d6-46d0-9ff9-25b53c27645c

Intermodal Transport Chain Read this content Composition ‘Last mile’ Interchange Transfer ‘First mile’ Decomposition Local / Regional Distribution National / International Distribution Transport Terminal

The North American Landbridge Read this content

The Eurasian Landbridge Read this content Explain how the North American and Eurasian Landbridge are examples of intermodalism. Source: International Union of Railways (2004) The Northern East West (N.E.W.) Freight Corridor, Transportutvikling AS.

Short Assignment: The Choice of a Transport Mode Explain how distance and cost are factors in selecting a specific transport mode.

B – Containerization Read section 2

The Benefits of Containerization Lower freight rates Lower insurance rates Minimal load unit Transport Costs Lower storage costs Lower packing and packaging costs Faster inventory turnover Inventory Costs Time reliability Higher frequency Service Level Read this content The container has become a dominant mode of global freight transportation. Explain the main reasons why.

Container Identification System Read this content Owner Code (3 letters): TGH Product Group Code (1 letter): U Registration Number (6 digits): 759933 Check Digit (1 digit): 0 Size & Type Code (4 digits/letters): 45G1 Operational Characteristics Maximum weight: 30,480 kg Container weight: 3,870 kg Payload weight: 26,610 kg Cubic capacity: 2,700 cubic feet

Common ISO Container Size and Type Codes Length Height Type 2 20 feet 2 8 feet 6 inches G1 General purpose container 1995 ISO standard 4 40 feet 5 9 feet 6 inches R1 Refrigerated container “High cube” U1 Open top container L 45 feet P1 Platform container M 48 feet T1 Tank container

Carrying Capacity of Containers (in cubic feet) Read this content Source: adapted from Robert C. Leachman (2005) Port and Modal Elasticity Study, Dept. of Industrial Engineering and Operations Research, University of California at Berkeley. http://www.metrans.org/nuf/documents/Leachman.pdf

Intermodal Terminal Equipment Read this content Straddle Carrier Rubber-tired Gantry Circulate over container piles. Can go over stacks up to 3 in height. 500 to 700 TEU per hectare. High storage densities (1,000 TEU per hectare). Difficult to move from one stack to the other. High acquisition but low operating costs. Front-end Loader Rail-mounted Gantry Use container top anchor points. Handle most containers. Can reach stacks up to 3 in height. Highest storage density (widespan; +1,000 TEU per hectare); mostly used at port terminals. Lowest operating costs. Fixed to rail tracks. Reach Stacker Portainer Flexible side loaders. Can reach stacks up to 3 full or 5 empty containers in height. 500 TEU per hectare. Load and unload containerships. Various sizes (Panamax and Super-Panamax).

Composition of the Global Fleet of Containers, 2012 20 Foot Containers Carry heavier goods. Running out on weight before run out of volume. 40 Foot Containers Carry more volume then weight. 40 Foot High Cube Highest volume available in maritime shipping. Reefer Carry refrigerated goods.

Characteristics of Portainers Panamax Post Panamax Super Port Panamax Outreach 30 to 40 m (13 containers wide) 40 to 45 m (18 containers wide) 46 to 70 m (22+ containers wide) Lift Height 24 to 30 m 30 to 35 m 30 to 49 m Lift Capacity 40 to 50 t single / 65 t twin 65 t twin / 80 t tandem Hoisting Speed 50 to 125 m per minute 60 to 150 m per minute 70 to 175 m per minute Trolley Speed 150 to 180 m per minute 180 to 210 m per minute 210 to 240 m per minute Lateral Travel Speed 45 m per minute Wheel Load 30 to 45 t per meter 40 to 45 t per meter 60 to 80 t per meter Cost $4 to 5 million $6 to 8 million $8 to 10 million Source: Adapted from Liebherr Container Cranes Ltd.

Number of Units and Weight of Standard Consumption Goods that Can be Carried by a 20 Foot Container Read this content Source: adapted from T. Toikka (2006) “The Real Price for Container Transportation between Asia and Europe”, Lappeenranta University of Technology, Department of Industrial Engineering and Management. What is the difference between “weighting out” versus “cubing out” in containerized transportation?

Containerization as a Diffusion Cycle: World Container Traffic (1980-2015) Read this content Adoption Acceleration Peak Growth Maturity 1966-1992 1992-2002 2002-2008 2008 - Reference Vision and risk Network development Productivity multipliers Reality Source: Drewry Shipping Consultants. New (niche) services Productivity gains Developing opportunities Niche markets Massive diffusion Network complexities

The Four Revolutions of Containerization Read this content Phase 1 Phase 3 Inland Port Transshipment hub Phase 2 Phase 4 Gateway CER Intermodal terminal

Containerization Growth Factors Derived Economic and income growth Globalization (outsourcing) Fragmentation of production and consumption Substitution Functional and geographical diffusion New niches (commodities and cold chain) Capture of bulk and break-bulk markets Incidental Trade imbalances Repositioning of empty containers Induced Transshipment (hubbing, relay and intersection) Source: Adapted from Dewry Shipping Consultants.

Containerized Cargo Flows along Major Trade Routes, 1995-2014 (in millions of TEUs) Why container flows are imbalanced and what happens with empty containers? Source: UNCTAD, Review of Maritime Transport, various years. Read this content

Containerized Cargo Flows along Major Trade Routes, 2012 Million TEUs 13.3 (+175%) Growth (2006-2012) 13.1 6.9 (+48%) Asia 16.0 27.0 North America 6.3 (+178%) 10.5 13.7 (+293%) Imports (M TEUs) 2.7 (+55%) 17.3 Europe 3.6 (+23%) 9.0 Exports (M TEUs)

Advantages and Drawbacks of Containerization Read section 3 Advantages Drawbacks Standardization ISO standard (modes and equipment). Unique identification number and size type code. Site Constraints Large consumption of terminal space. Draft issues with larger containerships. Flexibility Commodities, manufactured goods, liquids and refrigerated goods. Capital Intensiveness Container handling infrastructures and equipment are important investments. $ Costs Stacking Low transport costs. Economies of scale at modes and terminals. Complexity of arrangement of containers, both on the ground and on modes. $ Velocity Repositioning Fast transshipment operations. Low terminal turnaround times. Divergence between production and consumption; repositioning. 20% of all containers. Warehousing Own warehouse; simpler and less expensive packaging. Stacking capability. Theft and Losses High value goods vulnerable to thefts, particularly between terminal and final destination. Security & Safety Illicit Trade Contents unknown to carriers. Reduced spoilage and losses. Illicit trade of goods, drugs and weapons, as well as for illegal immigration.

Container Usage during its Life-Span Source: adapted from Crinks, P. (2000) Container Usage Asset Management in the Global Container Logistics Chain, International Asset Systems. http://www.interasset.com/docs/AssetManagementWP.pdf

Stacked 40-Foot Containers, Port of Yantian, China Read this content

Loading Coffee into Containers, Cartagena, Colombia Read this content Source: Cartagena Port Authority. Why a commodity such as coffee is carried in containers?

40-Foot Containers Doublestacked on a Rail Car Source: Read this content

40’ Reefer Container

20-Foot Tank Containers Read this content Photo: Dr. Jean-Paul Rodrigue, 2010

The Ultimate “Kegger”

Reuse of a Discarded Container (South Africa) Read this content Discarded containers have many uses. Searching to web, provide some examples about how containers can be reused.

Containerized Housing Units, Le Havre, France Read this content

Container Turned in a Swimming Pool…

Short Assignment: “The World in a Box” Watch this video The container has several advantages and drawbacks. Provide a succinct explanation of the advantages and drawbacks you think are the most important.