This document includes all the work covered during the lectures, in lecture slides as well as the 3rd edition Strategic Logistics Management textbook. It also includes the class activities with full memos and explainations
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Chapter 7: Transport
Management
Introduction
Freight transport is mostly conducted by road in South Africa.
Through traffic (originates and destined outside a specific region)
Local traffic (originates and destined inside a specific region)
Outbound traffic (originates inside and outside a specific region)
Inbound traffic (originates outside, but destined inside a specific region)
Types of freight include:
Dry bulk
Liquid bulk
Containers
Unitised (Bags, cartons or crates)
Vehicles (on auto carriers/automotive trains)
Rail transport is used for bulk materials over long distances (e.g. iron or coal
lines)
Chapter 7: Transport Management 1
, Air transport is concentrated at main international airports. Smaller volumes are
at smaller regional airports.
The impact of freight and cargo has escalated due to a move from rail to road
globally.
Function of Transport
The function of transport can be defined as providing mobility
and accessibility.
Mobility: the movement of passengers and freight along links n
supply chains.
Accessibility: the convenience of getting access to urban or
rural nodes located on the links in the supply chain.
Differentiation of transport:
Inbound transport: Includes raw materials or components from suppliers to the
plants and is done in bulk by water, rail or road.
Outbound transport: Refers to the finished goods on pallets in containers or
tautliner trucks to distribution centres or direct store deliveries in the case of full
truck or container loads.
On-site transport: Consists of transfer vehicles or mobile robots that take
pallets or break-bulk units (cartons, bags or drums) from the raw materials store
to the production line and then take finished goods from final production to the
finished goods store
Importance of Transport
Directly related to the cost of logistics in general and the cost of transport in
particular.
A breakdown of the estimated logistics costs in ZAR (2016):
Chapter 7: Transport Management 2
, Modes of Transport
There are five primary modes of transport, namely:
Road transport (Trucks)
Some advantages of road transport include:
The capital costs of vehicles are relatively small
Easy for new users to enter the market
Competition is healthy
Relative high speeds of vehicles
Only constrained by legal speed limits
Flexibility of route choice
Door-to-door delivery
However there are some limitation to road transport. The axle weights are
determined by the bridge formula which stipulates the configuration for the axles,
dimensions, spacing and load to ensure that the road bridges can handle the load of
a truck.
Chapter 7: Transport Management 3
, 💡 A typical flatdeck interlink configuration that can be used to carry one 6m
container and one 12m container. The total gross combination mass is
limited to 56 000kg.
Use of containers in intermodal transport has increased for intercontinental imports
and exports, but the arrival of the tautliner trucks has impacted negatively on the
local use of containers. The tautliner trucks can load more pallets on the same
footprint of containers which results in significantly lower transport costs per load.
Rail transport (Trains)
Some advantages of rail transport include:
High capacity load
Low cost transportation
Low value commodities
Usually raw materials (e.g. coal, wood, grain, chemicals)
Long distance hauls
Demand planning involves a set of five models to determine the demand for
transport of all types of freight. The five models are:
Liquid fuel and gas model
Aimed at improving the forecasting of commodities associated with the
petroleum industry.
Uses supply-side capacity intelligence and matches the fuel production
forecasts with demand and then supplies the projected shortfalls with fuel
product imports.
Incorporates a number of envisaged dynamics within the industry such
as oil and gas pricing, energy substitution, and efficiencies.
Freight demand model
Considers sources of supply and demand in the economy
Determines where goods are produced and consumed in an origin-
destination matrrix format.
Container demand forecast model
Chapter 7: Transport Management 4
, Models the movement of all containers in South Africa across five
typologies, namely:
Marine deep sea (import/export)
Marine coastal (alt. to domestic surface logistics)
Domestic intermodal
Empty repositioning
Trans-shipment
Transnet transportation model
Market share model (MSM)
Water transport (Ships)
Some advantages of water transport include:
High capacity
Relatively low cost
International capabilities
Movement of large shipments via the ocean
Multiple goods at once
Air transport (Plane)
Some advantages of air transport include:
High speed delivery
Freight protection/safety
High value/emergency goods transported
Pipelines
Some advantages of pipelines include:
In-transit storage
Cost efficiency
Liquid commodities
Large volumes
Some disadvantages of pipelines include:
Chapter 7: Transport Management 5
, Disruption to agriculture and other land uses from construction and operation
Difficulties associated with easement (right-of-way) enforcement and land
restoration in the US.
Secondary Transport Modes
Conveyors
Canals or inland waterways
Drones
Transport Mode Comparison
The choice of the most suitable mode for cargo, freight, goods or
commodities depends on economy, service, functionality and
related characteristics of the respective modes.
Chapter 7: Transport Management 6
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