1. The 6 th European Conference and Exhibition on Inland Terminals, Barcelona, Spain, 24-25 November 2011 Port Regionalization, Inland Terminals and Last Mile Logistics Jean-Paul Rodrigue Professor, Dept. of Global Studies & Geography, Hofstra University, New York, USA Institut Français des Sciences et Technologies, des Transports, de l’Aménagement et des Réseaux, SPLOTT Laboratory, Marne-la-Vallée, France.

2. Containerization: An emerging maturity and dichotomy

3. 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 (hub, relay and interlining)

4. Pushing Regionalization: World’s Major Container Ports, 2008-10

5. Net Traffic Change, World's Largest Container Ports, 2003-05 / 2008-10

6. Transshipment Volume and Incidence by Major Ports, 2007-09 Asia – Mediterranean Corridor Caribbean Transshipment Triangle East Asia Cluster Northern Range

7. Last Mile Logistics (LML): The centrality and intermediacy of logistics

8. Supply Chain Differentiation: Selective Performance Preference Costs (38%) Stability of the cost structure. Relation with the cargo being carried. Time (12%) Influence inventory carrying costs and inventory cycle time. Routing options in relation to value / perishability. Reliability (43%) Stability of the distribution schedule. Reliability can mitigate time.

9. Reliability Remains Somewhat Elusive… Schedule Reliability in Container Shipping, 2010

10. Supply Chains: Alternating First and Last Miles Extraction Processing Fabrication Assembly Distribution Retailing Logistics Chain 1 Transport Chain 1 LC 2 LC 3 Logistics Chain 4 TC 2 TC 3 TC 4 TC 5

11. The “Terminalization” of Logistics Terminal as a constraint Rational use of facilities to maintain operational conditions Storage space, port call frequency, gate access Volume, frequency and scheduling changes Bottleneck- Derived Terminal as a buffer Incorporating the terminal as a storage unit “Inventory in transit” with “inventory at terminal” Reduce warehousing requirements at distribution centers Warehousing- Derived Terminalization

12. The last mile and regional supply chains

13. Different Supply Chains, Different Last Miles TypeSupply Chain Gateway-based Few mass market goods (economies of scale in distribution). Few very specialized goods (economies of scale in warehousing). Little if any transformations. Transloading. Tiered-based Mix of retail goods coming through a few gateways. Some customization. Large suppliers and large retailers (Big Box). Transloading, Postponement and Cross-docking. Regional distribution centers Complex set of goods coming from numerous suppliers (e.g. automotive parts). Regional variation of the nature and extent of demand. Local distribution centers Time sensitive bulky cargo (e.g. perishables). Low lead times. City logistics.

14. Distribution based on tiered system Distribution based on RDCs

15. American Foreign Trade by Maritime Containers, 2009 (in TEUs)

16. The regionalization thesis: Mitigating last mile logistics with massification

17. The Complexities of Inland Logistics: The “Last Mile” in Freight Distribution Insertion of transshipment hubs Hinterland-Based Regionalization Foreland-Based Regionalization PORT FORELAND PORT HINTERLAND CapacityFrequency Capacity Gap Economies of scale Frequency Gap Setting of inland load center network 2 2 Inventory in transit 1 1 Inventory at terminal

18. The Massification of Transportation and Land Use in Inland Systems PortPortPortPortPortPort ITIT ITIT ITIT ITIT Inland Port Corridor Port-Centric Inland Load Center Network Formation Supporting Land Use Direct truckEnd haulRail / barge service ITIT Intermodal Industrial Park Inland Terminal

19. Two growth dynamics: 1)Transshipment 2)Regionalization

20. Two growth dynamics: 1)Coastal shift / rebalancing 2)Commodities

21. Inland ports: Leveraging the last mile with co- location

22. Main Advantages of Co-location: Multiplying Factors for the Last Mile FactorAdvantages Real estate Lower land acquisition costs. Higher acquisition capital. Joint land use planning. Specialization Transport company; terminal development and operations. Real estate promoter; logistic zone development and management. Cargo interdependency Respective customers. Joint marketing. Drayage Priority gate access. Shorter distances. More delivery trips. Higher reliability. Asset utilization Better usage level of containers and chassis. Chassis pools. Empty container depots. Information technologies Integration of terminal management systems with inventory management systems.

23. Intermodal Terminals and Recent Co-Located Logistic Zones Projects Every rail operator involved. Partnership with a major real estate developer.

24. Inserting Inland Ports within Supply Chain; A Complex Fit Containerization shows sign of maturity and dichotomy in its growth and diffusion. 1 Supply chain requirements are multifactorial and interdependent. 2 Different supply chains have different LML. 3 Mitigating LML with regionalization. 4 Leveraging LML with co-location at inland ports. 5