1. Chapter 7
Transportation 1

2. Transportation includes the following activities:
Mode selection
Freight consolidation
Carrier routing
Vehicle scheduling
Rate auditing

3. Transportation-Logistics-Marketing Interface
Moving product to the markets that are geographically separated
Transportation cost impacts the selling price
Providing added value to customers-transporting the products to the right place in right condition, at right time, in right quantities.
Transportation contributes to the improvement of customer service levels and in consequence to providing customer satisfaction

4. Transportation service characteristics affecting customer service level
Consistency of service
Time-in-transit
Market coverage (door-to-door service)
Air-water-pipeline-rail transport---terminal to terminal / Road transport----door to door
Loss/damage performance
Flexibility (having flexible network)
Versatility (transporting different products in varying sizes and weights)

5. Factors Influencing Transportation Costs1 7
Factors Influencing Transportation Costs
PRODUCT-RELATED FACTORS
Density: Weight to volume ratio ( relatively heavy to given size)
Low density products ( toys, clothing) are low in transportation costs
High density products ( steel, canned food) are high in transportation costs
Stowability: (cube utilization) Degree to which a product can fill the available space in a transport vehicle.
Petroleum versus machines
Ease or Difficulty of Handling
Need for Strong Protective Packaging
Products’ Hazardous Characteristics
Liability : Value to weight ratio
high liability-jewelry, art paintings

6. MARKET-RELATED FACTORS
Government regulation
Freight traffic into and out of a market
Domestic versus international movement
Degree of intramode/intermode competition
Location of markets
Seasonality of products

7. MAIN TRANSPORTATION MODES
Each mode is characterized by a set of technical and operational attributes.
Road transportation
Rail transportation
Air transportation
Water transportation
Pipeline

8. ROAD TRANSPORTATION
It is the most commonly used mode of transportation (e.g: Turkey95%, USA43% for local and regional transportation)
Relatively rapid transit times in local and regional transportation
Road transportation is versatile, numerous types of vehicles in use, that can carry varying sizes and weights over any distance :
Bulk materials, liquids, containers to refrigerated goods.
Ama kaza sayısında 195 ülke arasında 12. sırada Türkiye !!!

9. ROAD TRANSPORTATION
Road transportation is flexible and has widest market coverage
Road network is very developed and branchy- this enables point-to-point service between almost all origin-destination combinations
FACT : There are more buses and trucks in Turkey than the total number of all buses and trucks that European countries have.

10. RAIL TRANSPORTATION In Turkey
Lacks versatility: fixed to track facilities-rail network incapabilities
Lacks flexibility:terminal-to-terminal services unless the companies have a rail siding at their facility like in Vestel

11. RAIL TRANSPORTATION water-pipeline-railways-motorways-airway
it is a relatively cheap form of transport.
water-pipeline-railways-motorways-airway
Cost of building 1 km. highway= Cost of building 5 km. railway
this relative cheapness is particularly important factor if the freight consignments are bulky and heavy
the movement is for medium to long distances
if the speed is not very important attribute (in general rail transport is relatively slow)

12. High speed rail Generally for passenger transportation Routes:
Ankara-Konya
Ankara-Eskişehir
(250km/h)
Ankara-İstanbul and Ankara-İzmir lines are underconstruction
In USA, France and Japan, there are trains with 450 km/h speed that compete with air transportation.

13. Terms for Railways
A railroad car (railway carriage) is a vehicle on a rail transport system (railroad or railway) that is used for the carrying of cargo or passengers.
A unit train (block train), is a railroad train in which all the cars are shipped from the same origin to the same destination.

14. Hazırlayan:2/V Müd.Yrd İlhan ÇETİN
Railcar Types
Hazırlayan:2/V Müd.Yrd İlhan ÇETİN

15. Railway Projects
In 2012, the allowance for railways increased to 4.1 billion TL and projects have been launched out to develop international railways:
Marmaray (London-China)
Kars-Tiflis-Bakü (to regenerate Silk Road)
BALO Project (Büyük Anadolu Lojistik Organizasyonu)(TOBB,Utikad, etc.)

16. Privatization Railcar ownership Railcar rentals
Reform in Turkish Railways -With a new regulation, railways will also be privatized like airways to create market competition.
By these regulations, private companies can manage their own coaches, locomotives and personnel to have their own freight train business. *

17. Characteristics of Air Transportation
Suitable for emergency and high value to weight products like fashion goods and spare parts, premium ( customer service importance) service
Quickest transit times on long distances and international movements
Damage and breakages are less.
Frequent and reliable service
Very flexible and can be operated without establishing costly stock-holding networks.
There may be delays due to airport congestion or due to handling and paperwork.
It is very costly. Consumes more energy per ton-kilometer than any other transport mode.

18. The busiest airports HJ ATLANTA, US - 92.365.860 passengers/year
BEIJING International, China
LONDON Heathrow, UK
CHICAGO O’Hare, US
TOKYO Int., Japan

19. Contemporary issues
3rd airport in Istanbul 6 landing fields on hectares.
Passenger capacity of 120 million.

20. WATER TRANSPORTATION
Global sourcing, container ships, VLCC (very large crude carriers)
Common differentiation of water transportation
Inland waterways transport (e.g. Amsterdam)
Sea transport

21. WATER TRANSPORTATION
Suitable for bulk goods and low price goods (coal, oil, coal, wood,…)
-In containers variable goods can be transported
Depends on geography, rivers and channels network
Generally, transport distances are longer
Slow transportation and long transit times
Depends on climate and seasonal characteristics (fog, water level, ice)

22. Characteristics of Water Transportation
Most of the foreign trade uses sea type of transport.
Energy usage per ton-kilometer is the least in comparison to the other modes.
Transportation costs are 2-3 times lower than in rail.
Advantages of sea transport can be visible at distances longer than 1000 km.
Port management and port’s equipment is very complex and expensive

23. The biggest ports in the world (in terms of work load)
Some facts
The biggest ports in the world (in terms of work load)
The share of water transportation in total export is 52% in Turkey.
While Greece gains 60 billion $ with water transportation, Turkey’s share is nearly 2,5 billion $.
Singapore
Rotterdam, Netherlands
South Louisiana, U.S.A.
Shanghai, China
Hong Kong, China
Houston, U.S.A
Chiba, Japan
Nagoya, Japan
Ulsan, South Korea
Kwangyang, South Korea
Rotterdam port

25. Some characteristics of the biggest ports in Turkey
Mersin: 21 docks enables to handle nearly 30 ships at the same time. In a year, the average tonage of handling is 15 billion.
İzmir: The length of the dock is m, and in a year ships visit the port.
Trabzon: The biggest port of Eastern Black Sea. In 2009, ships visited the port and containers are handled.
İskenderun: The length of the dock is m, and the capacity of the port is 640 ships/year.

26. Contemporary issues Petkim Container Port Çandarlı Container Port
It will be the biggest integrated port of Aegean region.
Its capacity will be 50% more than Alsancak port.
Integrated to railways.
In total, 48 hectare will be separeted as logistics area.
700 m. dock TEU vessels can berth
It will be the biggest container port of Turkey and one of the biggest top 10 container ports of the world.
It will create employment for people.
It will bring approximately 700 billion TL /year.