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

2. A – Intermodalism
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3. Intermodalism and Transmodalism
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Intermodalism
Origin
Destination
Road
Rail
Maritime
Transmodalism
Origin
Destination
Rail
Rail
What is the fundamental difference between intermodal and transmodal transportation?

4. 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

5. Conditions for Intermodal Transport
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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.

6. Outcomes of Intermodal Transport
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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.

7. Pallets waiting to be loaded in a container, Shenzhen, China
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8. Multimodal and Intermodal Transportation
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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.

9. Distance, Modal Choice and Transport Costs
Road C3
Transport costs per unit
Rail
Maritime D1 D2
Distance
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10. Freight Transport Costs per Ton-Mile (in 1995 dollars)
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Source: Ronald Ballou (1998) “Business Logistics Management”, 4th Edition, Upper Saddle River, NJ: Prentice Hall.

11. Average Length of Haul, Domestic Freight in the United States, 1960-2010 (in miles)
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Source: RITA/BTS. Table 1-38: Average Length of Haul, Domestic Freight and Passenger Modes.

12. Modal Share of Freight Transportation, Selected Countries, 2008 (in % of ton-kms)
Why Europe, the US and Japan have different composition of transport modes?
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Source: AT Kearney

13. Intermodal Transport Chain
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Composition
‘Last mile’
Interchange
Transfer
‘First mile’
Decomposition
Local / Regional Distribution
National / International Distribution
Transport Terminal

14. The North American Landbridge
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15. The Eurasian Landbridge
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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.

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

17. B – Containerization
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18. 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
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The container has become a dominant mode of global freight transportation. Explain the main reasons why.

19. Container Identification System
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Owner Code (3 letters): TGH
Product Group Code (1 letter): U
Registration Number (6 digits):
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

20. 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

21. Carrying Capacity of Containers (in cubic feet)
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Source: adapted from Robert C. Leachman (2005) Port and Modal Elasticity Study, Dept. of Industrial Engineering and Operations Research, University of California at Berkeley.

22. Intermodal Terminal Equipment
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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).

23. 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.

24. 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.

25. Number of Units and Weight of Standard Consumption Goods that Can be Carried by a 20 Foot Container
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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?

26. Containerization as a Diffusion Cycle: World Container Traffic (1980-2015)
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Adoption
Acceleration
Peak Growth
Maturity
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

27. The Four Revolutions of Containerization
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Phase 1
Phase 3
Inland Port
Transshipment
hub
Phase 2
Phase 4
Gateway
CER
Intermodal
terminal

28. 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.

29. 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.
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30. Containerized Cargo Flows along Major Trade Routes, 2012
Million TEUs
13.3 (+175%)
Growth ( )
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)

31. Advantages and Drawbacks of Containerization
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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.

32. 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.

33. Stacked 40-Foot Containers, Port of Yantian, China
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34. Loading Coffee into Containers, Cartagena, Colombia
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Source: Cartagena Port Authority.
Why a commodity such as coffee is carried in containers?

35. 40-Foot Containers Doublestacked on a Rail Car
Source:
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36. 40’ Reefer Container

37. 20-Foot Tank Containers Read this content
Photo: Dr. Jean-Paul Rodrigue, 2010

38. The Ultimate “Kegger”

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

40. Containerized Housing Units, Le Havre, France
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41. Container Turned in a Swimming Pool…

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