Multimodal freight transport and port management (BKULY00678)
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Summary Multimodal freight transport and port management
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Course
Multimodal freight transport and port management (BKULY00678)
Institution
Katholieke Universiteit Leuven (KU Leuven)
This document is fully written in English. It is a complete summary of all powerpoints explanations given by the tutor in class. At the end you can find recaps of the chapters we had to read & discuss in class. - Also have a look at my profile for other summaries.
Multimodal freight transport and port management (BKULY00678)
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Multimodal Freight Transport and Port Management
Session 1 : Introduction and aspects of intermodal freight transport
1.1 Multimodal freight transport
Causal link between trade - freight transport and economic
development.
The ratio between GDP&Trade with industrialized countries is
always around 2. This means that international trade is always
growing twice as fast as your annual GNP. Exception: (1) periods
between World Wars (international trade is disrupted). (2)
Globalization: since globalization started around 3. How is this
possible ? (1) Transport has become cheaper thanks to
economies of scale, time, containerization,... Scaling up --> ships are getting bigger --> per individual
product your price will become cheaper.
1.2 Intermodal freight transport: Success of transport
• Success of transport / trade was possible by emergence of containers
o Efficiency
o Cost reductions: elimination of excessive handling costs
o Reduction of time in ports, increase of turnaround times (much higher proportion of
their time spend at sea = attempt to increase profitability)
o Today increase in automation and use of specific stacking vehicles
o Introduced by Malcolm McLean
o Economic system (usable in all types of transport) with three essential elements
▪ Means of displacement
▪ Traffic infrastructure
▪ Load (people or goods)
Dips: 2009: Economic crisis , probably a dip in
2020 due to corona.
Major driver of trade = seaborne trade ! Thanks
to seaborne trade, the world merchandise trade
has been increasing at the same rate.
GDP product is also increasing, but seaborne is
increasing at higher pace !! The relationship →
is increasing even as from today.
Most important element: CONTAINER. Increase of
dry cargo as well. Those elements are
uncontainerised. Major bulks (iron, grain,…) are also
increasing.
1
, Europe: Import & Export is equal
America: more export than import
Asia: more import than export → more dry bulk
imported to Asia, to produce cheaper there, less
weighted products are sent to the world.
Major increase: size of vessel
Main Maritime shipping routes
Not only going in Europe or S-E-Asia !
Container: Europe-America (Trans-Atlantic)
China-North America (Transpacific)
China-North-Europe
We saw a shift from Europe→America to
south-east Asia, is this durable ? Will this last ?
→ will something else happen that will disrupt
this shift ? 1. Companies/production facilities can go to a different country → now India is taking
over from China. But China does not want to lose all the production facilities, now they are investing
in robotization and automation. Labor becomes more automated.
SLIDE 14-22
Main belt in which all transport flows are located.
A lot are going through Antwerp ! It is a very
important harbor.
2
,TRANSPORT NETWORKS IN THE EU
Transported via all kinds of transport
networks ! Road, Train, inland waterways
1.3 Transport – definition
• Transport
o Essential for the functioning of the economy and social structure
• Definition of transport
o All human activities that result in the spatial displacement of people, goods and
messages
▪ Movement of goods in the exact shape, to the desired place and the most
appropriate time
o All socio-economic efforts the society needs to perform to move people, goods and
messages between two places
• Transport
o Does not exist on its own
o Result of a primary need of goods and services
o Transport is a derived demand
▪ The existence of a transport need of people or goods results from specific
consumption and production needs
▪ There is only transport if there is a demand somewhere else !!!!
▪ Reason for transport is ALWAYS a production/consumption need !
o Results in an increase of value
▪ E.g. raw materials: moves from the primary production centers to industrial
centers and finally distribution centers
o Every displacement results in an increase of value
▪ Displacement is no utility as such, but the goods are going to a place where they
can be of more use (e.g. production and distribution).
o For goods as well as people a need for transport exists
▪ In case residing at the edge of a town is preferred by an individual, this is a
reason to commute every day to work
• Need for transport
• Reason to organize public transport
• Transport system: based upon economic need
o Economic system with three essential elements
▪ Means of displacement
▪ Traffic infrastructure
▪ Load (people or goods)
3
, 1.4 Division of transport according to criteria
• According to way of transport
o water, land, air, …
• According to means of transport
o Truck, rail, pipeline, barge, airplane
• According to object
o People of Goods transport
• According to distance
o Short distance (local or regional) or
o Long distance (continental or intercontinental)
▪ Continental: remains on the continent
• E.g. Belt and Road-project
▪ Intercontinental: between different continentals
• E.g. maritime transport
• According to the frequency of the transport service
o Line traffic (periodically repeated service independent of demand for transport) – De Lijn
Bus
o tramp traffic (service dependent on the demand for transport, aiming for a maximized
filling rate)
• According to type of operation
o Transport at own expense
o or transport for a third party (make or buy decision)
▪ + Distance !
▪ + Investment on ships
▪ + Goods can get damaged
▪ + Cost might be lower.
▪ + Expertise of the third party
▪ Disadvantage: control of the transportation of your goods, hidden costs (have
good negotiations/SLA’s), more dependent on other people who cannot always
deliver the same quality, less flexible
• According to judicial-organizational aspects
o Public versus private transport
• According to time of transport
o Seasons- and speed influences (depends on hour of the day)
• According to reason for transport
o Economical, sociological, psychological reasons, etc.
1.5 Specific characteristics of transport
• Transport is a derived demand
o Derived from needs of people and goods to move from one place to the other
• Transport has a complementary character
o Receives a value in function of existing off to be developed economic activities
• Demand for transport is place- and time-dependent
o Transport is a service that needs to be delivered and consumed immediate, no stock or
storage of transport activities is possible
4
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