Multimodal freight transport and port management
Session 1: Introduction and aspects of intermodal freight transport
Ratio between trade with = Around two.
Industrialized countries and GDP International trade grows twice as fast as GDP.
→ Link between trade, maritime = Around three since globalisation and containerization
transport and economic Transport became cheaper: containers, economies of scale,
development ships became bigger → Prices became cheaper
Intermodal freight transport Intermodal = the use of more than one mode of transport
and the cargo doesn’t need to be unloaded separately. The
goods remain in the same loading unit (e.g. containers)
Intermodal freight transport in Multimodal transport: the use of more than one mode in a
detail transport chain (e.g. road and water) → = Combined
transport
Two possible techniques to load the goods from one mode
into another:
- Lift-on / lift-off system (= vertical techniques with
cranes)
- Roll-on / roll-off system (=horizontal techniques)
The success of transport Because of containers. = Containerisation
Advantages of containers - Introducer: Malcolm McLean
- Efficiency
- Cost reduction (elimination of excessive handling costs)
- Reduction of time in ports
- Today: more automation and use of stacking vehicles
- Standardization : TEU
World seaborne import and export (Seaborne = overzees)
Europe: Import = export (loaded ships = unloaded ships)
America : import < export
Asia : import > export (mostly dry bulk to produce cheap final
goods there)
Main maritime shipping routes - Europa – America (=Trans-Atlantic)
(for containers) - China – North America (= Transpacific)
- China – North-Europe
We can see a shift from Europe to America and from America
to South-East Asia. China is investing in automation and
robots to keep the power, because they don’t want to give
their power away to India.
Definition of transport - All human activities that result in the special
displacement of people, goods and messages.
- All socio-economic efforts the society needs to perform
to move people, goods and messages between two
places.
Characteristics of transport - It does not exist on its own → it is the result of a primary
need of goods and services.
➔ Transport is a derived demand.
- Transport has a complementary character: it creates
value.
- The demand for transport = place and time dependent
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,Transport is a derived demand The existence of a transport need of people or goods results
from specific consumption and production needs.
The reason for transport is always a production or
consumption need. No transport without a demand!
The result of transport = an increase of value. E.g. raw materials are transported and
used for final goods.
→ Every displacement results in an increase of value.
Transport is an economic system - Means of displacement (vervoersmiddel)
with three essential elements: - Traffic infrastructure
- Load (goods or people)
Transport can be classified 1. Way of transport
according to 9 criteria - Water, land, air
2. Means of transport
- Truck, rail, pipeline, airplane, vessel
3. Object of transport
- People or goods
4. Distance of transport
- Short or long (continental or intercontinental)
5. Frequency of transport
- Line and tramp traffic
6. Type of operation
- At own expense or for a third party
7. Judicial-organizational aspects
- Public Vs Private transport
8. Time of transport
- Seasons- and speed influences (depends on the
hour of the day)
9. Reason for transport
- Economical, sociological…
e.g. Continental transport Belt and Road-project from Chinese government :
cooperation between Africa and Eurasia.
e.g. Intercontinental transport Maritime transport
Line traffic Periodically repeated service independent of demand for
transport (e.g. De Lijn)
Tramp traffic Service that depends on the demand for transport
Transport for a third party Third-party logistics means the outsourcing of transportation
or logistics services. = Make or buy decision.
Advantages:
- You get the expertise of a third party
- The costs might be lower
- You don’t have to invest in a ship yourself
Disadvantage:
- You don’t have full control of the transportation of
your goods
- There might be hidden costs.
- You depend on other people, you are less flexible.
Irregular flow of transportation The import and export is uneven divided and sometimes only
goods → not a fully use of capacity half of the capacity of a mode of transport is used → this is
very expensive. Solution: Return cargo.
Return cargo = A cargo who enables a ship to return loaded to the port
where her previous cargo was loaded.
2
,Cabotage = When a carrier from an EU member state transports goods
between two points within the borders of another member
state.
Two different system elements for - Localized goods of capital (=fixed components. E.g.
transportation railroad tracks, traffic infrastructure, roads…)
- Mobile goods of capital (e.g. trucks, ships…)
Fixed vs mobile components Fixed components:
- Advantages: long lifespan, very local goods.
- Disadvantages: Expensive to replace, limited
alternative use, large amount necessary to be
efficient (economies of scale)
- Financed by governments & monopoly in
exploitation
Mobile components:
- Advantages: cheap to replace, can be alternatively
used, limited economies of scale, no entry barriers
- Disadvantage: short lifespan
Location determining factors - Transport costs (e.g. location around a port results in
lower transport costs)
- Availability of industrial areas
- Availability of labour and degree of education
- Proximity of markets
- Social, fiscal and political climate
The transport costs might Transport costs are only a small determinant of the location.
influence the location but: It costs almost the same to transport containers from
Antwerp to Cologne as to Singapore. → maritime transport is
much cheaper than land transport.
Other transport characteristics that influence the location:
- The speed, accessibility and reliability of the mode
- An improvement of transport can reduce the costs of
transport and enlarge the market possibilities.
The blue banana = The main distribution corridor of Europe.
= the most industrialised places in Europe.
UK → Benelux → Germany → North Italy
Criteria that determine the choice - Speed
of mode of transport - Accessibility or penetration
- Usability
- Degree in which the mode of transport can be
used for different products and amounts.
- Variability and ease of use
- Possibility of the transport to start and stop on a
specific time
- Demand needs to be satisfied asap
- Frequency
- How often will you use the transport?
- Risk for damage of cargo → safety and security
- Costs
- Depend on the distance
- Availability
- Comfort (especially for passengers)
3
,Speed of transport Important for food for example.
Important for the producer → capital is only shortly involved
Important for the consumer → gets his products faster
Important for transporter → high degree of use of capacity
Goods categorized based upon - High value goods
their value. 3 categories: o Might come with high costs of transport
o E.g. perishable goods, luxury goods, urgent
needs (pharma)
o Might need additional packaging
- Average value goods
o Semi-manufactured products
- Limited value goods
o Raw materials
➔ There is a close relation between the transported
goods, the price of transport and the means of
transport!
Transport systems can be divided - Nature of cargo
according to: o Passenger
o Goods : bulk cargo (dry and liquid), general cargo
and containers
- Transport technical characteristics
o Division based upon used means of transport
and necessary infrastructure
o Road, rail, maritime and air transport
- Exploitation
- Carriage on own account vs commercial transport
Nature of cargo Different cargo, passengers or goods, require different
demands for quality, comfort and speed.
Nature of cargo: goods cargo Different goods require different types of transport. There
are three main groups:
1. Bulk cargo
= Transported in high amounts, without packaging.
= Transported in specifically build vessels
- Dry bulk cargo: non liquid goods that are
dumped directly in the ships holds. (e.g. Iron,
coal, grain)
- Liquid bulk cargo: pumped directly in tanks of
ships or wagons. Can also be done by pipelines.
(e.g. gasses in a liquified state, crude oil,
chemicals…)
2. General cargo
= Goods that are transported individually or per
package.
= Divided in:
- Conventional cargo (alledaags)
- Containers
3. Containers
How to load/unload bulk cargo Dry bulk cargo:
- With grabbers or suction devices
Liquid bulk cargo:
- Pomped in tanks or by means of pipelines
4
,3 Different types of conventional 1. Breakbulk
cargo: = goods in small packages, loaded on pallets
e.g. Flour, sugar and fruits
2. Neo-bulk
= goods that are shipped and handled as a unit
e.g. heavy machines
3. Roll-on-roll-off
= Transport of cars and trucks etc.
How to load/unload conventional Conventional cargo might be packed in a specific way, in
cargo: order to make the shipment and handling easier and faster.
This means → Bundling of cargo to a unit load. Two options:
- Palets
- Containers
Containers = stackable boxes of aluminium or stainless steel.
- Standardization = essential → TEU : twenty foot
equivalent unit. Or FEU : Forty foot
- Used for: maritime, road, rail and barge transport (=
binnenvaart transport)
- For road transport: also use of swap bodies
Swap bodies = detachable loading space that can be put on legs and
attached to a traction engine. = not stackable
Types of containers - Generals purpose containers (TEU and FEU)
- Open top containers
- Cooled or reefer container
- Tankcontainer
Transport technical division = division based upon used means of transport and necessary
infrastructure.
Means of transport:
- road, rail, barging, maritime and air transport
Choice of means of transport based upon (see above):
- quantity, type of goods, value of goods, distance,
speed, frequency…
Road transport High valued goods that need to be transported within the
same continent are often transported with road transport.
→ For goods with a high value (perishable or vulnerable
goods), the cost of the transport is less important. Perishable
goods need to be fast at their destination.
→ fast door-to-door transport
Barges or rail Mostly used for low value goods.
Measuring of transport To measure the transport, the cargo = a key element
Transport is measured by:
- the actual number of passengers or the actual
number of moved tonnage
Unit of measure of freight transport:
- = Passenger-km (PKM)
- = Tonne-kilometer (TKM)
5
,Modal split = Distribution of transport to and from the hinterland with
different means of transport.
- From the hinterland means the transport of the
goods from the port to the rest of the country.
= The percentage of travelers/goods using a particular type
of transportation
Modal split of the port of Antwerp 41% road, 42% inland navigation and 17% rail transport.
The modal split of a port is substantially different from other
modal splits.
The modal split specifically for 55% road, 38% inland navigation and 7% rail transport. This
containers modal split doesn’t take transhipment into account)
→ Why mostly road? Containers normally stay in a short
distance to the port (limited range of 50 km) → this is the
natural hinterland or cargo generation potential.
Transshipment Containers are unloaded in one port and will go with another
vessel to another port. → Sea-sea transport. This cargo will
never go into the hinterland.
Modal shift = change of modal split. You change for example the modal
split from road transport to inland navigation.
Modal split Antwerp – Road 90% of truck traffic is within a range of 300 km around
transport Antwerp
→ there is a strong correlation with the most important
market for the port of Antwerp.
→ About 80% of all goods have their origin or destination in
this area (300km – natural hinterland)
The closer to the port The more the modal split is shifted. The more different
means of transport.
Rotterdam-effect = the prevalence of short distances. The most important
categories are distances between 0-25km and 100-125km
The short distances are a problem (= change in modal split)
for the modal shift All types of transport are related to type of cargo AND
distance, road is preferred on a short distance, inland
navigation is further away , rail on the longest distance. Most
operations stay withing short radius/very dense of the port
of Antwerp. That’s why trucks are the most important in
Antwerp.
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, Session 2: Trends in container shipping
Freight transport in different Small country: more road, less rail
regions Large country: less road, more rail
General GLOBAL trends 1. Growing maritimization
2. Growing containerization trade
3. China is the economic motor → more shipments of
raw materials to China, so they can use them to
produce consumer goods
4. The general freight prices are decreased substantially
Containerization Because too many ships are bad for the environment and to
cut the costs, manufactured goods are containerized and
there is consolidation of the efforts.
Growing maritime transport ¾ of the Internationale trade consists of maritime trade.
Reasons for growing The port activities are characterized by a global dimension.
maritimization - The increasing degree of globalization of the world
economy results in more maritime transport.
- The quality of vessels gets better
- The use of containers : uniform loading capacity,
flexible for the use of different means of transport,
the costs of containers are low.
Interaction between the growth of Through specialisation
the world economy and the and containerisation, the
growth of maritime trade markets are opened and
this results in
globalization
Ratio between trade with = Around two.
Industrialized countries and GDP International trade grows twice as fast as GDP.
→ Link between trade, maritime = Around three since globalisation and containerization
transport and economic Transport became cheaper: containers, economies of scale,
development ships became bigger (Increase in vessel size)→ Prices became
cheaper
Main maritime shipping routes - Europa – North America (=Trans-Atlantic)
(for containers) - China – North America (= Transpacific)
- China – North-Europe (= Europe-Far East route)
→ China is the economic motor
Growing maritime trade in raw Crude oil → goes from the middle east to places where it is
materials → Bulk cargo really needed : industrialized countries.
Coal → goes from South Africa and America to Europe and
Asia.
Iron → goes from Australia, South America and South Africa
to the rest of the world.
Increase in transportation of bulk The raw materials are necessary to fulfil the needs for
to China demand and production in China.
Can there be a further increase of If the shipments grow, the vessels need to grow too. At a
scale of shipping? certain point, there will be no demand for transportation
anymore and the vessels will not grow anymore.
Also if the container vessels keep growing, they won’t fit into
the ports anymore.
→ This is the tension between technical possibilities and
economically achievable.
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