1. Transport Trends and Inland Hubs
Jean-Paul Rodrigue
Associate Professor
Dept. of Global Studies & Geography
Hofstra University
New York, USA
TIMEFRAME: 20 minutes

2. Type and Function of Inland Terminals
Load center
Transmodal terminal
Satellite terminal
Type
Function
Satellite terminal
Close to a port facility. Accommodate additional traffic and serve functions that have become too expensive at the port. Container transloading.
Freight distribution cluster / load center
Access regional markets (production and consumption). Intermodal, warehousing, and logistics functions. Linked with logistics parks and free trade zones.
Intermodal / Transmodal facility
Link large systems of freight circulation either through the same mode (e.g. rail-to-rail) or through intermodalism (e.g. rail-to-truck).

3. A Favorable Environment for Inland Ports
Containerized Trade
Strong growth (China effect)
Containerization of supply chains.
Long distance hinterland transportation.
Trade Imbalances
Imbalanced flows and shipping rates.
Load centers for empties on backhauls to ports.
Gateway Congestion
Limitations for terminal expansion.
Higher port charges and lower dwell times.
Problematic local and terminal gate access.
Governance
Terminal operators.
Value capture.
Environmental constraints (Nimbyism).
Political support (policy).   

4. Global Containerized Trade: Prepare to be Disappointed
An Ongoing Intermodal Integration
Potential Divergence: Bubbles, Trade and
Containerization
Container yard, Port of Yantian, China

5. Intermodal Integration is Moving Inland
Container
port
Containerization of Maritime Transport Systems
Gateway
Pendulum
Services
Intermodal
terminal
Corridor
Containerization of Inland Transport Systems
Inland
Port
Offshore
hub
Intermodal and Transmodal Operations

6. World Container Traffic, 1980-2008. Reaching Peak Growth?
Adoption
Acceleration
Peak Growth
Maturity
2010(?) -
(?)
Divergence
Source: Drewry Shipping Consultants.

7. The Global Economy is Shocked
Third Oil Shock
Source: Federal Reserve Bank of St. Louis.
Second Oil Shock 1 2
First Oil Shock C
Gold Standard A B

8. The Current Trend is Strongly Deflationary…
Source: Bloomberg.
Complete Breakdown

9. Coping with Imbalances
Transport Flows
Transport Rates
Inland Ports and Repositionning
NS Rutherford Inland Terminal, Pennsylvania

10. Containerized Cargo Flows along Major Trade Routes, 1995-2006 (in millions of TEUs)
Source: UNCTAD, Review of Maritime Transport, various years.

11. Maritime Freight Rates (Nominal USD per TEU), 1993-2007
Source: UNCTAD, Review of Maritime Transport, Various years.

12. Geographical Levels of Empty Container Repositioning
Hinterland
Global Repositioning
Inter-Regional Repositioning
(inland)
Inter-Regional
Repositioning
(coastal / fluvial)
Regional
Repositioning
Source: adapted from Boile, M., S. Theofanis, A. Baveja and N. Mittal (2008) “Regional repositioning of empty containers: A case for inland depots.” Transportation Research Record: Journal of the Transportation Research Board (in press).
Foreland
Port
Depot / Inland terminal
Freight Distribution Cluster
Cargo Rotation

13. Monthly Container Traffic Handled by the Port of Los Angeles, 1995-2008 (TEU)

14. Terminalization and Inland Ports
Economies of Scale: A Hard Pill to Swallow
Terminalization and Supply Chains
Extended Distribution Centers
Trimodal Container Terminal, Willebroek, Belgium

15. The Largest Available Containership, 1970-2007 (in TEUs)
E “Emma” Class (2006)
S “Sovereign” Class (1997)
R “Regina” Class (1996)
L “Lica” Class (1981)

16. Hinterland Logistics: The Realm of the “Last Mile” (or the “First Mile”)
Massification
Atomization
Frequency
Capacity
GLOBAL
HINTERLAND
REGIONAL
LOCAL
Shipping Network
Corridor
Segment
Customer
“Last Mile”
Inland Terminal
Distribution
Center
Gateway

17. Terminalization in a Supply Chain Context
Foreland (First Mile)
Suppliers
Bottleneck
Gateway
Buffer
Distribution center (outbound / inbound)
Inland containerized goods flow
Inland non-containerized goods flow
Offshore Hub
Maritime container flow
Gateway
Port regionalization and the creation
of a Regional Load Center Network
Inland
Terminal
Extended Gate
Extended Distribution Center
Customers
Hinterland (Last Mile)

18. Supply Chain Terminalization: Import Flows to the Hinterland
Bottleneck and buffer-derived terminalization
Port regionalization:
Regional load center network.
Extended gate:
Development of inland terminals.
Extended distribution center:
The terminal as a warehousing unit.
Suppliers
Gateway
Offshore Hub 1
Gateway 2
Inland
Terminal 3
Customers

19. Container Transloading: A Strong Vector of Terminalization
Cause
Outcome
Consolidation
Transferring the contents of smaller containers into larger containers (e.g. three maritime 40 foot containers into two 53 foot domestic containers). Cost savings (number of lifts). Time delays.
Weight compliance
Transferring the contents of heavy containers into loads meeting national or regional road weight limits.
Palletizing
Placing loose (floor loaded) containerized cargo unto pallets. Adapting to local load units (e.g. europallet).
Demurrage
Handing back containers to owner (maritime shipping or leasing company) by transferring its contents into another load unit (e.g. domestic container).
Equipment availability
Making maritime containers available for exports and domestic containers available for imports. Trade facilitation.
Supply chain management
Terminal and transloading facility as a buffer. Delay decision to route freight to better fulfill regional demands. Perform some added value activities (packaging, labeling, final assembly, etc.)

20. Automated Transfer Management System for Truck-Rail Transfers
Source: Mi-Jack Products

21. Supply Chains and Inland Terminals
JVC Belgium (EDC) + TCT Belgium (EG)
Four day rule.
Free time Rotterdam (5 days).
Free time TCT Belgium (21 days).
Full containers at TCT; part of stock to JVC Belgium.

22. Governance and Inland Terminals
Terminal Operators and Value Capture
Operations and Life Cycle
Containerization of Commodities
Uiwang Inland Container Depot, South Korea

23. The Value Capture Process along Commodity Chains
Port Authority
Maritime Services
Inland Services
Port Services
Horizontal Integration
Port Holding
Offshore
hub
Inland
Port
Port
Vertical Integration
Maritime shipping has a profit margin of only about 2%. Single operator controls the berth-to-gate operations.
Maritime shipping lines moving inland to capture value. Port terminal operations. Rail and trucking operations. Distribution centers. Logistics.
Commodity Chain
Maritime Shipping
Port Terminal Operations
Inland Modes and Terminals
Distribution Centers

24. Inland Terminals: Operations and Added Value
Core
(Operations)
Infrastructure
Modal access (dock, siding, road), unloading areas
Equipment
Intermodal lifting equipment, storing equipment
Storage
Yard for empty and loaded containers
Management
Administration, maintenance, access (gates), information systems
Ancillary
(Added Value)
Trade facilitation
Free trade zone, logistical services
Distribution centers
Transloading, cross-docking, warehousing, light manufacturing, temperature controlled facilities (cold chain)
Storage depot
Container depot, bulk storage
Container services
Washing, preparation, repair, worthiness certification
The core is standard and replicable almost everywhere. It is the ancillary that makes the difference because this is where most of the added value can take place.

25. Inland Terminal Life Cycle
Traffic
Subsidies / Investments
Planning
Setting
Growth
Maturity
Decline
Profit
Concept
Operations begin
Stage 1
Stage 2
Stage 3
Stage 4
Stage 5

26. Bulk and Containerized Commodity Chains
Bulk Commodity Chain
Supplier
Customer
Port
Point-to-Point
Consolidation center
Complementarity
Container
port
Pendulum
Services
Inland Terminal
Containerized Commodity Chain

27. Inland Terminals: Is the Trend our Friend?
Intermodal Integration (Positive)
Energy Prices (Somewhat Positive)
Collapse of Asset Inflation Bubbles (Very Negative)
Containerization of Commodities (Positive)
Container waiting to be loaded, Shenzhen, China