1. Maritime Transportation and Inland Freight Distribution: The Challenge of the Coast Dr. Jean-Paul Rodrigue Dept. of Economics & Geography Hofstra University Hempstead, NY http://people.hofstra.edu/faculty/jean-paul_rodrigue/

2. Outline ■1. Dislocation of Commercial Flows ■2. Coping with Economies of Scale ■3. Transforming Hinterlands ■4. Conclusion: The Challenge of the Coast

3. 1. Dislocation of Trade Flows ■Differential growth New origins and different growth rates for freight. ■The kindness of strangers Imbalanced trade and balance of payments. ■What comes in does not come out Imbalanced freight flows. ■Going with the flow A new reality for ports.

4. Share of Global GDP Growth, 1995-2002

5. Increases in U.S. Commercial Freight Shipments and Related Growth Factors, 1993–2002

6. U.S. Trade in Goods and Services - Balance of Payments, 1970-2003 (billions of $US)

7. Containerized Cargo Flows along Major Trade Routes, 2000-2002 (in millions of TEUs)

8. Cargo Handled by the Port of New York, 1991-2003 (metric tons)

9. Container Traffic at Major East Coast Ports, 1990-2003 (TEU) 1 2 3 4 5 6 7 8 9 10 11 12

10. 2. Coping with Economies of Scale ■A heavyweight tendency Larger containerships. ■Costs being externalized Pressures on transshipment and inland distribution. ■Dredge it and they will come? The “race to the bottom”.

11. First Generation (1956-1970) Converted Tanker Second Generation (1970-1980) Cellular Containership Third Generation (1980-1988) Panamax Class Fourth Generation (1988-2000) Post Panamax Plus Fifth Generation (2000-?) Post Panamax Converted Cargo Vessel Five Generations of Containerships TEULength 135 m 200 m 500 800 215 m 1,000 – 2,500 250 m 3,000 290 m 4,000 275 – 305 m 4,000 – 5,000 335 m 5,000 – 8,000 Draft < 9 m < 30 ft 10 m 33 ft 11-12 m 36-40 ft 11-13 m 36-43 ft 13-14 m 43-46 ft

12. The Largest Available Containership, 1980-2000 (in TEUs)

13. Fourth Generation Containership (4,000 TEU), Le Havre

14. Average Cost per TEU by Containership Capacity and By Route, 1997

15. Economies and Diseconomies of Scale in Container Shipping Costs per TEU Capacity in TEU Maritime Shipping Transshipment Inland Transportation

16. Channel Depth at Selected North American Ports, 1998 (in feet)

17. 45 Navigation Channel Control Depth (feet) Intermodal Terminal Container Port (proposed) Major Highway Proposed rail tunnel 45 30 37 45 40 43 40 45 40 37 Ambrose Channel Main Ship Channel Raritan Bay Channel Arthur Kill Channel Kill Van Kull Channel Newark Bay Channel Upper Bay Channel Hudson River East River 45 The Narrows Brooklyn Staten Island New Jersey N 2 1 Howland Hook Red Hook South Brooklyn 3 1- Port Newark 2- Port Elizabeth 3- Global Marine Albers Equal-Area Conic Projection Intermodal Facilities and Navigation Channels of the Port of New York, 2003 Daily Truck Movements (one way), 2001

18. 3. Transforming Hinterlands ■The flexibility and adaptability of supply chains Growing functional integration. ■Between a port and a hard place New hinterland structures. ■The intermodal coast Regionalization and modal shift.

19. Functional Integration of Supply Chains Shipping Line Shipping Agent Stevedore Custom Agent Freight Forwarder Rail / Trucking Depot Trucking Megacarrier Economies of scale Land Distribution Maritime Distribution Level of functional integration

20. Changes in the Relative Importance of Logistical Functions in Distribution Systems

21. The Spatial Development of a Port System

22. Pendulum Route: OOCL Container Services on the North Atlantic, 1997 Boston New York Norfolk Savannah Jacksonville Miami Houston Bremenhaven Felixstowe Rotterdam Le Havre NAX-1 NAX-2 Atlantic Ocean

23. National Trade Areas, Articulation Points and Major Land Freight Gateways of the United States Articulation Point Land Freight Gateway Trade Area Corridor

24. Continuous and Discontinuous Hinterlands Core of the service area Middle section of the service area Outer section of the service area 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

25. Albany Camden Wilmington New Haven Davisville New York Boston Baltimore Washington Potential Regional Barge Port LO/LO Barge Service Reading Syracuse Inland Rail Terminal Inland Rail Route Worcester / Framingham Hanover Hartford / Springfield Freight Cluster Philadelphia I95/New Jersey Port Inland Distribution Network

26. Potential Modal Split Changes Due to the PIDN

27. Modal Split for Container Traffic, Rhine Delta, 1995-2000

28. France Belgium Lux Germany Netherlands ROTTERDAM Zeeland Seaports ANTWERP Zeebrugge Ghent Ostend Brussels Lille Liège Wielsbeke Genk Duisburg Emmerich Nijmegem Avelgem Born Venlo Valenciennes Grimbergen Willebroek Deurne Meerhout Duesseldorf Cologne Krefeld Neuss Bonn Andernach Dortmund Amsterdam Alkmaar Beverwijk Zaandam Harlingen Leeuwarden Veendam Meppel Groningen Drachten Kampen Almelo Hengelo Zutphen Ede Hillegom Utrecht A. a/d Rijn Tilburg Oosterhout Helmond Gorinchem Moerdijk Den Bosch Oss Valburg Stein Gennep Mertert Koblenz Dormagen Seaport in Rhine-Scheldt Delta Delta seaport system with multi-zone polarisation Inland Container Terminal (barge or multimodal) Growth region European Distribution (outside seaport system) The Rhine Delta Port System: Mature Regionalization

29. Conclusion: The Challenge of the Coast ■A changing geography of maritime and inland distribution Global changes: New geography of production. Imbalanced trade flows. Regional gains: Consumption and distribution. Local pains: Congestion. Stressed capacities. ■The challenge of the coast Port regionalization. Modal shift: readjustment of freight flows. Efficiency in distribution derived from the hinterland.