1. “Flowpolis: The Form of Nodal Space” Las Palmas de Gran Canaria, November 2-4 2006 Intermodal Transportation and Integrated Transport Systems: Spaces, Networks and Flows Jean-Paul Rodrigue Associate Professor, Dept. of Economics & Geography, Hofstra University, New York, USA “There’s no business like flow business” Email: ecojpr@hofstra.edu Paper available at: http://people.hofstra.edu/faculty/Jean-paul_Rodrigue

2. Spaces, Networks and Flows in a Global Economy ■Globalization; a clustered and spatially diffused process In terms of production and consumption. Distribution is reconciling spatially diverse demands for raw materials, parts and finished goods. ■The backbone of globalization Networks are established to support distribution. Nodes are regulating the flows within networks. As international trade increases, nodes have become strategic locations.

3. The Emergence of a Nodal Space: First Phase ■The Transshipment Node Conventional international trade environment. Some mobility of raw materials, parts and finished goods. Many impediments (tariffs and regulations). Trade as an attempt to cope with scarcity. Nodes as constrained locations for transshipment. Load break functions. Industrial clusters next to rail yards. Port industrial complexes. Load Break Warehousing lag Industrial cluster

4. Harbor Types of the World's Large and Medium Sized Ports

5. The Emergence of a Nodal Space: Second Phase ■The Intermodal Node Higher mobility of the factors of production (particularly capital). Better realization of comparative advantages (mainly labor). Strengthening of the transactional and legal setting. Emergence of intermodal transportation, mainly containerization. Nodes as locations promoting the efficiency of different transport networks. New terminals and new locations. Increased velocity of the flows. Composition Transfer Interchange Decomposition Transport Chain ‘First mile’ ‘Last mile’

6. The North American Landbridge

7. The Emergence of a Nodal Space: Third Phase ■The Logistical Node Fast growth of international trade with the full realization of comparative advantages. Geographical and functional integration of production, distribution and consumption. Commodity / Supply Chains. Transportation integrated in the production / retailing process. Global Production Networks (GPN). Nodes as logistical poles where value added activities are performed. Entirely new nodal locations. Supply Chain Flows Market Transport Chain Parts and raw materials Manufacturing and assembly Distribution Market Stage Bulk shipping Unit shipping High volumes Low frequency Low volumes High frequency LTL shipping Average volumes High frequency Network GPN

8. Traffic at the 50 Largest Container Ports, 2003

9. Nodes as Central and Intermediate Locations ■Gateways & hubs Nodes offering an accessibility to a large system of circulation. Obligatory (semi) points of passage. Convergence of transport corridors. Centrality and intermediacy. ■Gateways Favorable physical location. Intermodal and stable in time. ■Hubs Transmodal and subject to change. Commercial decisions. Delays vs. frequency of services. Gateway Local Regional Global Corridor Centrality Intermediacy Intermodal Hub Transmodal

10. Modal Gateways: Spaces of Flows ■Context The logistical node is being regionalized. ■Land Linked with borders. Often a simple transit function. Respective specialization. ■Air Linked with metropolitan areas. Centrality and intermediacy. ■Maritime Linked with locations (sites) and hinterlands. Integration with inland freight distribution centers. Border Logistics Manufacturing Land Air Maritime

11. Major US Modal Gateways, 2004

12. The Three Main Gateways of North America Gateway System GatewaysTotal share (%) Imports / Exports ($ billions) 2004 Southern California Port of Los Angeles, Port of Long Beach, Los Angeles International Airport, Otay Mesa (Port of Entry) 18.3%$255.9$77.8 New York / New Jersey JFK International Airport, Port of New York / New Jersey 13.1%$163.0$75.8 Detroit Detroit (Port of Entry), Huron (Port of Entry) 9.8%$97.9$81.8

13. Integrated Transport Systems: From Fragmentation to Coordination FactorCauseConsequence TechnologyContainerization & ITModal and intermodal innovations; Tracking shipments and managing fleets Capital investmentsReturns on investments Highs costs and long amortization; Improve utilization to lessen capital costs Alliances and M & ADeregulationEasier contractual agreements; joint ownership Commodity chainsGlobalizationCoordination of transportation and production (integrated demand) NetworksConsolidation and interconnection Multiplying effect

14. Integrated Transport Systems: Intermodal and Transmodal Operations ROAD RAIL MARITIME Intermodal Terminal Thruport Ship-to-ship DCs / CD Intermodal operationsTransmodal operations On-dock rail Transloading Integrated Freight Transport System Port container yard

15. Three Emerging Nodal Spaces Supporting Transmodal Flows ■Transmodal Road Assumed by distribution centers. High potential for added value. From inventory management to flow management. ■Transmodal Rail Least investigated segment. Containerization forced integration between rail systems. ■Transmodal Maritime Offshore hubs. Transshipment-only terminals at intermediate locations. ■How transmodal nodes are inserted within freight distribution systems? Modal segment Added value Time and cost savings

16. Cross-Docking Distribution Center Suppliers Customers Receiving Shipping Sorting Distribution Center Before Cross-Docking LTL Suppliers Customers After Cross-Docking TL Cross-Docking DC

17. UPS Willow Springs Distribution Center, Chicago

18. Rail Transmodal Operations: The Thruport ■Market fragmentation Mainly retail / consumption related. Reconcile the high volume requirements of markets with the time sensitive requirements of distribution. ■Ownership fragmentation Rail companies have their facilities and customers. They have their own markets along the segments they control. Interchange is the major problem. The distribution potential of each operator is expanded. Network alliances. Thruport Gateway B A C D

19. 13.98 M TEU

20. Mi-Jack Stack-Packer (Thruport Terminal)

21. Offshore Hubs: A New Nodality ■Offshore hubs Dilemma between market coverage and operational efficiency. An adaptation of shipping routes. Improvement in the frequency and the timeliness of services. Emergence of new nodes at strategic locations. ■Major factors Location. Depth. Land availability. Labor costs. Hinterland access. Ownership. Short Sea Shipping Pendulum Route A Pendulum Route B Offshore Hub

22. Ports with the Highest Transshipment Function, 2004

23. Las Palmas: At the Crossroad of Transatlantic Shipping ■Emergence of an offshore hub Above 600,000 TEU (2005). An intermediacy node along major maritime routes and major markets; relay transshipment. Deviation effect: Minimal for: circum-Africa / Western Europe, Mediterranean / Central America, Europe-Med. / South America. Algeciras: Biggest competitor. Net advantage (low deviation) for the Mediterranean / North America route). Las Palmas

24. Global Port Operators: Using Nodes to Control Global Flows ■A change in emphasis Conventional perspective based on geostrategy: “Whosoever commands the sea commands trade; whosoever commands the trade of the world commands the riches of the world, and consequently the world itself”. Sir Walter Raleigh (c1610). An emerging perspective based on accessibility, flows and commercial interests. Controlling terminals and the major gateways of the global economy: Through alliances and investments. Deriving wealth through added value extracted from global flows. A “nodal strategy” where stake holding is based on locations along major commodity chains.

25. Global Port Operators: Using Nodes to Control Global Flows ■Horizontal integration using fixed assets Gain a foothold in a wide variety of markets. Financial assets. Managerial expertise. Gateway access. Leverage. Traffic capture. Global perspective.

26. Major Port Holdings, 2006

27. Conclusion: Emergence of a Global Nodal Space ■The logistical node Central and intermediate locations; gateways or hubs. Geographical and functional integration brought by the emergence of global production networks: Extension and complexity. Control and synchronization of flows. Effectively captures and adds value within global supply chains. Competition (between and within nodes). ■Challenges and opportunities Congestion (offshore hubs and port regionalization). Integration (intermodal and transmodal). Energy prices (logistical friction). Macro-economic changes (trade imbalances).