Multimodal Transportation Chapter 1 PDF

MULTIMODAL TRANSPORTATION (MT) CHAPTER 1 Prepared by: Dr Nurul Haqimin Mohd Salleh Forms of Multimodal Transport Operations 1. Land – Sea - Land Container Truck Container Truck Container T...

MULTIMODAL TRANSPORTATION (MT) CHAPTER 1 Prepared by: Dr Nurul Haqimin Mohd Salleh Forms of Multimodal Transport Operations 1. Land – Sea - Land Container Truck Container Truck Container Truck Container Vessel Train Truck 2. Road – Air -Road Truck Truck Cargo Plane 3. Sea – Air -Sea Container Vessel Cargo Plane Container Vessel 4. Road – Rail – Hinterland Waterways - Sea Truck Bulk Cargo Barge Train 5. Land Bridge (Mini Land Bridge and Micro Bridge) This system concerns itself with shipment of containers overland as a part of a sea-land or a sea-land-sea route. In this case, the railways are paid a flat rate by the ocean carrier who issues the through bill of lading. This system is in operation for the movement of containers on certain important international routes such as: between Europe or the Middle East and the Far East via the Trans-Siberian land bridge; and between Europe and the Far East via the Atlantic Mini Land Bridge This involves the movement of containers, under a through bill of lading issued by an ocean carrier, by a vessel from a port in one country to a port in another country and then by rail to a second port city in the second country, terminating at the rail carrier's terminal in the second port city. The mini-bridge offers the consignor a through container rate inclusive of rail freight up to the final port city in the country of destination. The railways are paid a flat rate per container by the ocean carrier for the rail transit. This system is in operation on certain routes covering the trade between the United States and the Far East, United States / Europe, United States / Australia, etc. Micro Bridge Micro bridge refers to door-to-door service available along the west coast of Unites States rather than traditional port-to-port services 6. Ro-Ro (Roll-on/Roll-off) This mode combines different means of transportation (sea and road), and is used most often with new automobiles, which are shipped by sea and them simply driven off the vessel to the importer’s warehouse. Heavy and over- dimensional cargo is also suitable for Ro-Ro transport. 7. L.A.S.H (Lighter Aboard Ship) LASH transport is the combination of deep sea and inland waterway transportation. An example is the route from Germany to the Mississippi Ports where the barges sail down the Rhine, Elbe or Weser in Germany, are loaded onto LASH container vessels in Rotterdam, Hamburg or Bremen; are then carried across the Atlantic, only to be unloaded at a Mississippi delta port to sail upstream in the U.S. It must be noted that LASH vessels are expensive, and furthermore it is necessary to check on the availability of the special handling facilities necessary in the ports of destination. L.A.S.H (Lighter Aboard Ship) 8. Piggyback This is a system of unitized multimodal land transportation, a combination of transport by road and rail. It has become popular in Latin American and European countries because it combines the speed and reliability of rail on long hauls with the door-to-door flexibility of road transport for collection and delivery. The goods are packed in trailers and hauled by tractors to the railway station. At the station, the trailers are moved onto railway flat cars and the transport tractors, which stay behind, are then disconnected. At destination, tractors again haul the trailers to the warehouses of the consignee. Piggyback 9. Sea Train ????? Sea train This is another innovation in the multimodal transport system involving the use of rail and ocean transport. It was originally adopted in the U.S.A. It is similar to the roll-on, roll-off (Ro-Ro) system except that in the place of the Ro-Ro vehicle a rail car is used so that geographically separated rail systems can be connected by the use of an ocean carrier. Typically these vessels are long and thin and consist of one main deck running the length of the ship. They are quicker at loading trains than general cargo vessels since the train’s carriages do not need to be detached from one another. Sea Train Advantages of Multimodal Transportation Advantages of MT 1. Minimizes time loss at transshipment points  Function of MT is planned and coordinated as a single operation, minimizes the loss of time and the risk of loss, pilferage and damage to cargo at transshipment points.  The multimodal transport operator maintains his own communication links and coordinates interchange and onward carriage smoothly at trans-shipment points.  Transshipment is the shipments of goods or containers to an intermediate destination before final destination. Advantages of MT (Cont..) 2. Provides faster transit of goods  The faster transit of goods made possible under multimodal transport reduces the disadvantages of distance from markets and the tying-up of capital.  In an era of globalization the distance between origin or source materials and consumer is increasing thanks to the development of multimodal transport. Advantages of MT (Cont..) 3. Reduces burden of documentation and formalities  The burden of issuing multiple documentation and other formalities connected with each segmented of the transport chain is reduced to a minimum. 4. Saves cost  Resulting from these advantages are usually reflected in the through freight rates charged by the multimodal transport operator and also in the cost of cargo insurance. As savings are passed onto the consumer demand increases. Advantages of MT (Cont..) 5. Establishes only one agency to deal with  The consignor has to deal with only the multimodal transport operator in all matters relating to the transportation of his goods, including the settlement of claims for loss of goods, or damage to them, or delay in delivery at destination. Multimodal Transport Services  UNCTAD (1995) states when a multimodal transport service is provided, the multimodal transport operator (MTO) will be liable from the point of origin to the point of destination. Means MTO will bear all cost for the shipment if MTO covers Road anything happen i.e., damage, pilferage, delay, etc. Individual Carriers Rail Shipping Lines Port Authorities Terminal Operators Stevedores Government Agencies  Each Movement of Good Involves Following Transport Links Transport Links Transport Point Load Unload Waiting Stored Weight Check Record Pack Reconsolidate Manheim (1979) states the characteristics of transportation system analysis as follows; 1. Multimodal covering all mode of transport 2. Multi-sectoral, encompassing the problems and viewpoints of government, private industry, and the public. 3. Multi-problem, ranging from rules, regulations, and policies to customer service levels and financial and economic feasibility. 4. Multi-disciplinary, drawing on the theories and methods of engineering, economics, operations research, political science, psychology, other natural and social sciences, management and law.  This means the total transportation system of a region must be viewed as a single multimodal system. The consideration of the transportation system cannot also be separated from consideration of the social, economic, and political systems of a region. Through transport systems analysis, the MTO will be able to use an integrated approach in operation, management and control of traffic, so that shorter delivery from origin to destination is made possible. The shorter delivery, and often more reliable delivery, will lower transit time of transport from origin to destination and will enable a greater control of costs, schedules and cargo safety. Average Costs Involved in the Movements of Goods These percentages will vary according to the distance involved, especially in the case of sea leg.  Cost Saving and Efficiency Massive savings on the transport chain are therefore possible, by improving overall efficiency through proactive management techniques and better control over cargo flow. To be able to improve overall efficiency, the MTO must be able to plan a high level of utilisation of transport links in conjunction with a continuity of cargo flow. Intralink storage must also be minimised (MacLeod, 1998). Typical Transport Considerations Shippers 1. Inland transport complications 2. Transit time to terminal 3. Transit costs to terminal 4. Terminal Charges 5. Frequency of service of main transport leg 6. Transit time of main transport leg 7. Cost of main transport leg Typical Transport Considerations Consignees Terminal charges Delay in obtaining inward clearance Cost of bonds at inward clearance point Transit costs from terminal to destination Transit time from terminal to final destination Border delays Segmented Transport vs. Multimodal Transport Service Industry DISTINCTIVE CHARACTERISTICS OF SERVICES Intangibility Something that you cannot usually handle, hear or smell of a service before you decide whether or not to buy. To assess it, may need some opinion from those have been used it, or you may rely based on your previous experience. Example: when you are using airplane, you unable to touch or handle the service provided by the operator. Sometimes, to compare the service you may ask your friends, perhaps asking about price, level of service etc. i.e., Air Asia or Mas, or Jet Tiger etc. From other sources, you may compare the services among competitors. Then you are able to decide which service you are willing to use. Inseparability Goods are usually produces, sold and consumed, it is different with service which are generally sold and then produces and consumed (often at same time). i.e., dental or medical treatment, hairdressing or lawyer. Even if you pay later (lawyer), you will have entered into a contract when you request the service. This characteristics means that the product cannot be separated from the person who provides and/or sells it. Another examples: a bus driver or a librarian. Variability (Heterogeneity) The quality of being diverse and not comparable in kind A lot of services ideally cannot ready to be standardized. There may be standard systems i.e., we meet when hire a car; however when it comes for implementation, even administered franchise system can fall down when it comes to providing a standard quality of service. i.e., fast food outlets For transport it is a special problem, where people most in touch with the customer do not work under supervision of management. Thus, it is easier to offer a standard quality of cans of baked beans than good delivery on congested highways. Perishability Perishable is widely used in transport industry; however it is important to remember that it is characteristic of all commercial activities where the product cannot be stored. i.e., if you could not sell your service during peak, you will lose the profit, because you cannot move your service during peak hour to off-peak. = The Strengths and Weaknesses of Modes of Transport Road ~ Car Strengths Weaknesses 1 Provide door-to-door transport and The reliance on oil-based products for energy makes convenience to user. the cost of running a car susceptible to oil price fluctuations and conditions. 2 Speed is higher rather than other modes. Mass use of cars is incompatible with satisfactory of public transport provision. 3 Carrying capacity for luggage and shopping Environmental impact of cars is severe, especially is very high – door-to-door element. in densely populated urban areas. Noisy, air pollution, accident toll is heavy and roads are visually intrusive 4 Comfort is very high, and to a large extent High usage of cars requires heavy expenditure on can be tailored to the user’s personal highway construction and maintenance. requirements. 5 Relatively reliable and cheap to maintain. Low capacity means need to acquire large amounts of land space for parking. 6 Only satisfactory form of transport for many people living in sparsely populated rural areas. Road ~ Taxi Strengths Weaknesses 1 Offer many advantages of both mass public Occupancy factor is very low, similar to private car transport and private car ownership and adds to congestion. 2 No need to own a car for short journey, taxi can Take patronage away from other forms of public cater for the need of disable and elderly transport and extensive use could result in deterioration of other public transport 3 User no requirement for driving skill, in sharp Relatively high cost system of transport and the contrast to the private car exact fare for and journey is rarely known before the journey commences 4 Door-to-door transport, fully personalized With private cars, add to pollution in city centres service 5 Mass use of taxis, could reduce of parking space 6 User is able to travel by taxis at any time and place 7 Responsive to much lower level of demand, because it takes only one person to initiate journey 8 User does not require an extensive of knowledge of physical layout of an area. Road ~ Bus and Coach Strengths Weaknesses 1 Modest capital cost – Low in overall operating cost Contend congestion – especially peak hours 2 High capacity vehicles – seat passenger ratio Demand responsive and unconventional services - Schedule compared with car. fixed to route and times. 3 Flexible form of passenger transport. Services are very susceptible to usage, inflation, and labour related problem because of relatively labour intensive. 4 Long distance coach travel using the most advanced The general public have a perception which very difficult to equipment benefits from motorway network and alter, that bus is more expensive to use than car. Because the improvement in other trunk routes driver only considers the marginal cost of his petrol when making comparison between bus fares and motoring costs. 5 Give comprehensive coverage of an area. Bus operations in urban areas suffer from peak cost problems, because of nature of the high demand for bus services. When spread throughout the working day result in high average costs of operation. 6 Environmentally acceptable than car Comfort for the passenger is often poor in urban areas, and the service is seen as “second class” by many non-users 7 Capacity potential is major element to highway traffic Not disable friendly for handicapped, mothers with infant and control programme to ease congestion or relieve city passengers with baggage. centre parking problem 8 Any transfer of users from cars to buses benefits society in terms of energy saving, noise reduction, better safety and reductions in air pollution, Road ~ Truck Strengths 1 Comprehensive road network means truck most flexible form if freight transport. 2 Being control by the driver, the security of the load and vehicle easily be monitored, making delivery on time and performance easier to measure 3 Payment for the infrastructure is spread over many users limiting the amount each user has to pay. Road haulage companies are able to concentrate their whole management on organizing their main business effort, leaving the design, building and maintenance of the highway to other organizations 4 Costs of each operation are far easier to calculate in road haulage than railways, giving the haulier a far better insight into which contracts are likely to be profitable. Road ~ Truck Weaknesses 1 Problem for environmental as they produce noise, air pollution, structural damage and visual intrusion. 2 Heavy trucks pose a bigger safety hazard on the roads and the truck can be intimidating. 3 Capacity of the truck is low compared to the train and barge/coastal ship. 4 Rely in oil for fuel and their operation is reliant on the oil price and availability of supplies 5 For truck carry hazardous cargoes results in the danger inherent on carrying these commodities being spread to other road users, Railway ~ Train Strengths 1 High average speed for journey range of 50 to 300 miles. 2 City centre to city centre con cut the overall journey time to a minimum. 3 Effectively utilizes land space. From any land of given width, it can carry more passengers and freight than any other land – based system. 4 Less environmentally adverse, both visual and physical pollution. 5 Bulk handling capacity means very cost effective compared to lorries. 6 Energy flexible and energy saving-electric traction relieves from depends on oil. 7 Safety record, excellent both passengers and freight. Especially on hazardous good 8 Great scope on automation system – driverless. 9 Able to provide an extensive range of services for passengers like catering, on board telephone, etc. Railway ~ Train Weaknesses 1 Vulnerable to industrial activity for primary products like coal, iron ore, manufacturing and petroleum products – during recession. Capital intensive for infrastructure, track signally etc., difficult to shed cost in short term. 2 Inherent inflexibility of operation. The network usually laid down for long time and difficult to change the infrastructure, changing pattern of economic and social activities. 3 Intermodalism for freight quite difficult for the transhipment of good. 4 Political interference like British, Malaysia case. 5 The inherent image inefficient and unreliability – delay in transportation of passengers and freight. 6 Labour intensive and heavily unionized industry and vulnerable to industrial action. 7 The general public perceive is railway is more expensive than other modes, especially apply to car. 8 During peak, train unable to provide comfortability aspect to passengers because of overcrowded. Airway ~ Aeroplane Strengths Weaknesses 1 The speed of travel, longer Inflexible in that in the distance, the greater aeroplane has to land and time saving of the take off at an airport. customer. Means passengers and freight are needed to change mode before reaching final destination. 2 Good safety record and Aeroplanes are noisy, employs highly trained subjecting houses under the professionals at all level of approaches to airports to the industry. almost unacceptable noise levels. 3 Good public image and is Freight very expensive for perceived to be very shipper and the cargo Sea ~ Ship Strengths Weaknesses 1 Capability of moving Speed, relatively slow vast quantities of between 300 and 360 cargo in one ship on nautical miles per one voyage day. Furthermore, ship operates 24 hours without break. 2 For user, it is the If accident occurs cheapest method of severe pollution and moving goods heavy loss of life. Inland Waterway Strengths Weaknesses 1 Suitable for passengers and Relatively slow mode of freight transportation. 2 Canals are use extensively to Need transhipment if the feed into the great river good are not required at system – transhipment silt on the inland between barge and vessel waterway. 3 Can be shared by all users, Being inflexible like ship canal authority responsible canals – Suez, Panama, for the upkeep, by toll Kiel, and Manchester to collection. cater for specific reasons. 4 Cheaper per unit carried than other modes of inland transport and fives good access to the sea. Pipeline Strengths Weaknesses 1 Also carrying unit, does not face congestion. 2 Environmental Pollution risk by spillage. friendly because easily be buried, can traverse difficult topography and be laid under water. 3 Operate at optimum Inflexible geographically and capacity and designed to serve fixed continuous process. locations and there is a finite capacity which cannot be altered to accommodate sudden surge in demand. 4 Largely automated