2008 International Logistics Forum, Incheon (Korea), October 8, 2008 Port Regionalization: Towards a New Phase in Pacific Asian Port Development Jean-Paul Rodrigue Associate Professor Dept. of Global Studies & Geography Hofstra University New York, USA

The Challenge of the Hinterland The Maritime / Land Interface The Velocity of Freight Gateways and the Logistical Hinterland  Container yard, Port of Yantian, China

Elements of the Maritime / Land Interface Port System Foreland (Shipping Network) Road Rail Coastal / Fluvial Hinterland (FDC) Corridors and Hubs Gateways Maritime Freight Distribution Inland Freight Distribution

Functional and Geographical Diffusion of Containerization: Globalization and Regionalization Diffusion (Functional and Geographical) Volume Global containerized commodity chains (Optimal: 75% ?) Regional Load Center Network Niche markets Port Foreland Traffic Hinterland Traffic Globalization Regionalization

Hinterland Logistics: The Realm of the “Last Mile” (or the “First Mile”) Gateway Inland Terminal DistributionCenter Capacity Frequency Corridor Customer “Last Mile” Segment GLOBAL HINTERLAND REGIONALLOCAL Shipping Network MassificationMassificationAtomizationAtomization

Logistics and the Velocity of Freight Push Logistics Shipment Speed Transshipment Speed Pull Logistics Containerization Speed barrier Logistical threshold Future improvements

Port Regionalization Trimodal Container Terminal, Willebroek, Belgium Regionalization and Hinterland Setting Hinterland Logistics 

The Spatial Development of a Port System Phase 1: Scattered ports Phase 2: Penetration and hinterland capture Phase 3: Interconnection & concentration Phase 4: Centralization Phase 5: Decentralization and insertion of ‘offshore’ hub Phase 6: Regionalization Load centerInterior centre Hinterland-based (Regional load centre network) Freight corridor LAND SEA Deepsea liner services Shortsea/feeder services Foreland-based

Regionalization and Hinterland Setting North AmericaWestern EuropeEast and Southeast Asia Coastal concentration Landbridge connections Inland concentration Coastal gateways Coastal concentration Low hinterland access

Container port / terminal Logistics zone / site Strongly developed corridor Poorly developed corridor Multi-port gateway region Pacific-Asia (e.g. Pearl River Delta) North American West Coast (e.g. LA/Long Beach) North Europe (e.g. Rhine Scheldt Delta) Landbridge Gateways and the Logistical Hinterland

Continuous and Discontinuous Hinterlands Main hinterland Competition margin Maritime load centre Inland terminal Continuous hinterland Port A Continuous hinterland Port B Discontinuous hinterland Port A Discontinuous hinterland Port B 'Island' formation Port A Port B

Types of Hinterland Macro-economicPhysicalLogistical Concept Transport demandTransport supplyFlows Elements Logistical sites (production and consumption) as part of commodity chains Transport links and terminals Mode, Timing, punctuality and frequency of services Attributes Interest rates, exchange rates, prices, savings, production, debt Capacity, corridors, terminals, Physical assets (fixed and mobile) Added value, tons-km, TEU, Value of time, ICT Challenge International division of production and consumption Additional capacity (modal and intermodal) Supply chain management

Gateways and the New Port Hinterlands: The “Regionalized Port” Consumption Production Terminal / DC Link (mode) Interest rates, exchange rates, prices, savings, production, debt Trade Balanced flows Imbalanced flows

Hinterland Challenges in Pacific Asia “Emma Maersk”, 12,500 TEU, Rotterdam, Netherlands Long Distance Trade Networks Supply Chain Reliability Port Regionalization Clusters 

Circum Hemispheric Rings of Circulation North American Landbridge Eurasian Landbridge Circum-Equatorial Maritime Highway Arctic Routes Atlantic Connector Pacific Connector

The Resurgence of All Water Services to the American East Coast Landbridge Westbound Route Eastbound Route Zone of Contestability Equilibrium (indifference) Point NY Savannah Panama Route Panama Suez

Challenges and Opportunities of the New Panama Canal (New Panamax – 12,000 TEU) Westbound Route Eastbound Route Algeciras Gioia Tauro Jeddah Colombo Singapore Hong Kong Shanghai Pusan Kobe LA/LB Kingston Panama Suez

Service Time Reliability: All Water Services vs. Transpacific / Landbridge 18 days NY: 22 days Savannah: 21 days Port congestion Offshore transshipment Transloading Unit train assembly Rail congestion Transmodal operations Road congestion Port congestion Offshore transshipment Panama / Suez Delays Transpacific / Landbridge All Water Services

Port Regionalization Clusters in Pacific Asia Foreland-based regionalization Hinterland-based regionalization

Two Major Transpacific Pendulum Routes Serviced by OOCL, 2006 (The Wal-Mart Express)

Port Regionalization in Pacific Asia Freight Distribution Moving Inland Two Major Forms of Regionalization: Foreland and Hinterland-Based Container waiting to be loaded, Shenzhen, China