Chapter 15: The Transport System PDF

Chapter 15 The transport system  Air transport Operational overview: Fast (short transit time) Long-distance service High-value freight Four types of carriers: Air parcel postal services...

Chapter 15 The transport system  Air transport Operational overview: Fast (short transit time) Long-distance service High-value freight Four types of carriers: Air parcel postal services Courier and express services Passenger aircraft (freight in cargo hold) Freight (all cargo) aircraft Air freight is determined by: Type of commodity Demand of characteristics Nature of distribution Chapter 11: Strategic Leadership  Air transport (continued) Strengths: Short transit times Long distance Reliable High goods security Low packaging cost Chapter 11: Strategic Leadership  Air transport (cont.) Limitations: Not door to door (terminal-bound) Low carrying capacity Low frequency (relative to road) Terminal congestion Sensitive to inclement weather at terminal Low accessibility (market coverage) High unit costs. Chapter 11: Strategic Leadership  Road transport Operational overview: Comprehensive Flexible Versatile Reliable. Chapter 11: Strategic Leadership  Types of commercial road freight vehicles 1) Rigid vehicle (single unit truck with two or three axles). 2)Combination vehicles (divided into four groups): Rigid truck and trailer combination Truck tractor and semitrailer combination Truck tractor combined with two interlinked semitrailers. Chapter 11: Strategic Leadership  Types of trailers and semitrailers 1. Van 2. Refrigerated van 3. Container carrier 4. Flatbed trailer 5. Low-bed semitrailer 6. Tanker 7. Livestock trailer 8. Dry bulk (hopper) trailer 9. Furniture van (pantechnicon) 10. Motorcar carrier 11. Side stanchion trailer 12. Open-top trailer Chapter 11: Strategic Leadership  Road transport (cont.) Strengths: Door-to-door service Accessible (good market coverage) Secure (few transfers) Fast on door-to-door basis Flexible/adaptable Frequent Chapter 11: Strategic Leadership  Road transport (cont.) Limitations: Carrying capacity Environmental impact Vulnerability to external factors High energy consumption Shared right of way Freight characteristics: Able to carry comprehensive range of goods High-value finished products. Chapter 11: Strategic Leadership  Rail transport Operational overview: Limited to fixed routes Terminal-to-terminal service Freight characteristics: Suitable for carrying large, high-density commodities and bulk consignments over lon distances at low cost. Chapter 11: Strategic Leadership  Train and wagon types Trains divided into unit trains and wagon-load trains Nine wagon types used internationally: Covered wagons (vans) Refrigerated wagons (refrigerated vans) Flat wagons Tank wagons Well wagons Open wagons Hopper wagons Side stanchion and centre partition wagons Motorcar wagons. Chapter 11: Strategic Leadership  Train and wagon types Chapter 11: Strategic Leadership  Rail transport (cont.) Strengths: Able to carry comprehensive range of goods Bulk carrier over long distance Efficient over long hauls Exclusive right of way Not affected by inclement weather Chapter 11: Strategic Leadership  Rail transport (cont.) Strengths: Dedicated unit trains can achieve short transit times Possibility of private sidings can improve accessibility Energy-efficient Low accident rate Chapter 11: Strategic Leadership  Rail transport (cont.) Limitations: Not door-to-door (terminal-bound); needs to be supplemented Needs robust packaging; high damage record Inconsistent service Requires high capital investment Vulnerable to pilferage of goods High degree of empty running. Chapter 11: Strategic Leadership  Pipeline transport Operational overview: The long-distance transportation of a liquid or gas through a system of pipes Chapter 11: Strategic Leadership  Pipeline transport (cont.) Strengths: Environmentally sound Large volume over long distance at low cost and risk Reliable and secure Low unit cost Tank-to-tank service (no transfers). Chapter 11: Strategic Leadership  Pipeline transport (cont.) Limitations: Limited range of commodities Fixed routes and terminals Inflexible service High investment cost Chapter 11: Strategic Leadership  Sea transport Operational overview: The most cost-effective way of transporting high-bulk commodities over long distances Most widely used international shipment method Chapter 11: Strategic Leadership  Sea transport (cont.) Operational overview (continued): Has become highly specialised since the 1960s (seven major vessel types used : - Bulk carriers (unpacked dry goods and tankers for fluids) - Container vessels - Conventional cargo vessels Chapter 11: Strategic Leadership  Sea transport (cont.) Strengths: Low-cost unit Large volumes over long distances Little congestion on open sea Safe and secure service Chapter 11: Strategic Leadership  Sea transport (cont.) Limitations: Terminal-to-terminal service only Vulnerable to inclement weather/rough seas Slow and low-frequency service Freight characteristics: Wide variety of freight at relatively low cost Vast majority of shipments not sensitive to short delivery times. Chapter 11: Strategic Leadership  Terminals A terminal is an area at the end of a route – or where routes meet, branch out or cross – where goods are transferred. Transport system consists of (a) links (to accommodate mobility for modes and goods) and (b) nodes (fixed points in the system or network where modes and goods come to rest) A terminal is a type of node. Chapter 11: Strategic Leadership  Terminals (cont.) Type of terminals: Airports Road terminals Rail terminals (break-bulk terminals, bulk terminals, roll-on/roll-off terminals and intermodal terminals) Tank farms Seaports Chapter 11: Strategic Leadership  Terminals (continued) Functions of terminals: – Freight consolidation – Bulk breaking – Warehouse and transfer services – Vehicle services. Chapter 11: Strategic Leadership  The goods carried in the transport system Three broad groups: 1. Raw materials 2. Semi-finished goods 3. Finished goods Five factors concerning goods influence transport costs: 1. In-transit care necessary 2. Density 3. Size and divisibility 4. Stowage ability and ease of handling 5. Potential liability of goods. Chapter 11: Strategic Leadership  Goods carried in the transport system Chapter 11: Strategic Leadership  Government as stakeholder in the transport system Reasons for government involvement in transport: Control of excessive competition Coordination of transport Integration of transport with economic policy Maintenance of safety, security and order Provision of costly infrastructure Provision of public goods Chapter 11: Strategic Leadership  Government as stakeholder (cont.) Recovery of the true resource cost of transport inputs Regulation of harmful conduct and externalities Restraint of monopoly power Social support. Chapter 11: Strategic Leadership