Economic Geography PDF - Transport and Location

Economic Geography 4 – Transport and location 121EC A.Y. 2024/2025 Dr. Giuseppe Borruso Department of Economics, Business, Mathematics and Statistics University of Trieste E-mail. [email protected] Ph. +39 040 558 7008 Skype: giuseppe.borruso Learning Objectives  In this...

Economic Geography 4 – Transport and location 121EC A.Y. 2024/2025 Dr. Giuseppe Borruso Department of Economics, Business, Mathematics and Statistics University of Trieste E-mail. [email protected] Ph. +39 040 558 7008 Skype: giuseppe.borruso Learning Objectives  In this lesson we will: ◼ Introduce the importance of Transport in Location; ◼ Present the factors characterizing a transport system; ◼ Examine the growth factors in transport demand; ◼ Scale of spatial organization of transport ◼ The spatial structure of transport costs ◼ Route selection issues  The Transport System The transport system can be conceptualized as the set of relationships between nodes, networks and the demand. These relationships involve locations spatially expressing this demand, flows between them and infrastructures designed to handle these flows. All the components of a transport system are designed to facilitate the movements of passengers, freight and information, either as separate or joint components. The Transport System  Demand. A derived function for the movement of people, freight and information for a variety of socioeconomic activities.  Nodes. Where movements are originating, ending and transiting (intermediacy); points of entry or exit in a transport system. They vary according to the geographical scale being considered ranging from local nodes (such as a subway station) to global nodes (such as port or airport terminals).  Networks. Composed of a set of linkages expressing the connectivity between places and the capacity to handle passenger or cargo volumes.  Locations. Nodes where demand is expressed as an origin, destination or point of transit. The level of spatial accumulation of socioeconomic activities (production and consumption) jointly defines demand and where this demand is taking place.  Flows. The amount of traffic over a network composed of nodes and linkages. This is jointly a function of the demand and the capacity of the linkages to support them.  Infrastructures. The conveyances such as roads and terminals expressing the physical reality of a network and designed to handle a demand with specific volume and frequency characteristics. Facilities enabling access to a network are jointly characterized by their centrality and the linkages that radiate from them.  Growth Factors in Transport Demand Passengers Quantity of Passengers or Freight Freight Growth in production and consumption Income growth Industrial relocation Economic specialization KM Suburbanization Average Distance Copyright © 1998-2010, Dr. Jean-Paul Rodrigue, Dept. of Global Economies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Suburbanization Industrial relocation Last mile & On Line market  The “Last Mile” in Freight Distribution Massification Atomization Frequency Capacity GLOBAL HINTERLAND REGIONAL LOCAL Shipping Network Corridor Segment Customer “Last Mile” Inland Distribution Gateway Terminal Center Copyright © 1998-2010, Dr. Jean-Paul Rodrigue, Dept. of Global Economies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Growth of (passengers and goods) transport and GDP (EU 27) Passeggeri, Merci, PIL 1995-2008 140 135 130 125 1995=100 120 115 110 105 100 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Passeggeri (1) (pkm) Merci (2) (tkm) PIL (a prezzi costanti 2000) (1) cars, motor vehicles, two-wheelers, autbus and pullmans, trams, underground rail lines, railways, air transport, inland waterways, intra-EU maritime transportE (2) Road railways inland waterways, pipelines, air and mairitime transport (intra EU) GDP at constant prices and exchange rates 2000; (Fonte: European Commission, Transport in Figures, 2010)  Transport modal split (EU 27) 1995 – 2007 Passengers transport Goods transport Andamento del trasporto merci per modalità (EU 27) 1995 - 2008 miliardi di tonnellate-chilometro 2.200 2.000 1.800 1.600 1.400 1.200 1.000 800 600 400 200 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Strada Mare Ferrovia Vie d'acqua interne Condotta Aria EUROPEAN UNION, Directorate-General for Energy and Transport - in co-operation with Eurostat, ENERGY AND TRANSPORT IN FIGURES 2010  Passengers Mobility Transition Industrial Mass Production Globalization Revolution Individual Motorized Collective Non-motorized Economic Development Copyright © 1998-2010, Dr. Jean-Paul Rodrigue, Dept. of Global Economies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Scales of Spatial Organization for Transport Scale Nodes Links Relations Global Gateways and Air and Investment, hubs (airports maritime trade and and ports) lanes production Region Cities Corridors (rail Urban system al lines, and hinterland highways, canals) Local Employment Roads and Commuting and and commercial transit distribution activities systems Copyright © 1998-2010, Dr. Jean-Paul Rodrigue, Dept. of Global Economies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use. https://www.marinetraffic.com/en/ais/home/centerx:9.0/centery:45.4/zoom:4 http://www.marinetraffic.com/ais/details/ships/shipid:730596/mmsi:565570000/imo:9342499/vessel:MAERSK_ALTAIR Large containerships in the Adriatic Sea http://www.marinetraffic.com/en/ https://www.flightradar24.com/14.39,10.29/2  Relative advantages of different transport modesMain technical advantage Transport Use Rail Minimal resistance to movement, Interurban transport of goods and containers. Not general flexiibility, safety good for short range Motorway Flexibililty (in terms of routes); high Individual transport. Average size of goods speed and easiness of movement moved; door-to-door; interurban and short range transport Inland High productivity and low power per Low – speed movement of goods of bulky waterway tonn dimension and low added value Air transport High speed High added value goods if compared to mass and volume (2% of global merchandise weight; 40% of value!) Pipelines Continuous flow. Top reliability and Liquids (pipelines) and gas where volumes are safety high and delivery is needed as continuous Haggett, 2001, p. 244 (da HAY W.H., An introduction to Transportation Engineering, New York, Wiley, 1961. p. 283  Transport modes and network structures Transport/ Object of transport Nodes Arcs Flows communication Road transport Passengers/goods cities; auto-port, Road / motorway Vehicles, airports, segments passengers, goods intersections Rail transport Passengers/goods stations; Railway lines Trains, passengers, intersections goods Air transport Passengers/goods Airports Air routes Airplanes/, passengers, goods Maritime transport Passengers/goods Ports Maritime roues Ships/, passengers, goods Pipelines Commodities, raw Interchange Pipelines m3; tonn of raw materials; energy stations (production materials; sites / commodities transfomartion sites) Telecommunication Data (information; Transmission points Telephone cables; Data / information s messagges) / stations trans-oceanic cables  Performance Comparison for Selected Freight Modes Vehicle Capacity Truck Equivalency 1500 Tons 57.7 52,500 Bushels (865.4 for 15 barges in tow) Barge 453,600 Gallons 100 Tons 3,500 Bushels 3.8 Hopper car 30,240 Gallons 10,000 Tons 350,000 Bushels 384.6 100 car train unit 3,024,000 Gallons 26 Tons; 910 Bushels 7,865 Gallons 1 Semi-trailer truck 9,000 for a tanker truck 5,000 TEU 2,116 Panamax containership 300,000 tons 2 million barrels of oil 9,330 VLCC 124 tons 5 747-400F Copyright © 1998-2010, Dr. Jean-Paul Rodrigue, Dept. of Global Economies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use. Economic Geography 6 – Transport and location 121EC A.Y. 2023/2024 Dr. Giuseppe Borruso Department of Economics, Business, Mathematics and Statistics University of Trieste E-mail. [email protected] Ph. +39 040 558 7008 Skype: giuseppe.borruso Road transport  Linearity, Capacity and Surface of Roads Hard Surface Wheeled vehicle 2 domestic animals Capacity 1 or 2 domestic 1 domestic animals animal 1 person Soft Surface Linearity Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  World Road Network Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Road Transport Density Measures, 2000s Meters of road per capita China km of road per 100 sqr. km United States United Kingdom Japan Italy Germany France Canada 0 100 200 300 400 Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  World Automobile Production 1,000,000 and Fleet, 1965-2014 72 70 68 900,000 66 64 62 800,000 60 58 Annual Production (Millions) 700,000 56 54 Car Registrations (Thousands) 52 600,000 50 48 46 500,000 44 42 40 400,000 38 36 34 300,000 32 30 200,000 28 26 24 100,000 22 20 18 0 16 Car Registrations Annual Car Production Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use. Rail transport  World Rail Network and Rail Systems Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Geographical Settings of Rail Lines Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Conceptual Corridor Development A B C D E F Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Economic Rationale of Rail Transportation Market Area Longest service area for inland transport (average length of 1,300 km). Service both the passengers and freight markets. Intermodal integration favored market segmentation and specialization. Capacity A wagon can carry 50 to 100 tons of freight. Economies of scale (unit trains and doublestacking). Costs High construction and maintenance costs. High operating costs: labor (60%), locomotives (16%) and fuel & equipment (24%). Shipping costs decrease with distance and load. Transshipments and train assembly increase costs. Benefits Accelerated industrialization. Support agricultural and energy supply systems. Intermodal connecting with international trade. Regulation Conventionally highly dependent from government subsidies. Governments financing, mainly for the sake of national economic imperatives. From regulation to deregulation. Private ownership and operations. Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on  Major Gauges of the Global Rail Systems, 2008 Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Spatial Performance of Rail and Road Transportation 350,000 14 300,000 12 250,000 Surface and Capacity Spatial Performance 10 200,000 8 Surface used (m2/km) Capacity (ton-km/day) 150,000 Spatial Performance (ton-km/m2/day) 6 100,000 4 50,000 0 2 Rail Road Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Bypassing Effect of High Speed Rail A Intercity line Rail station High speed rail line High speed rail station Closed intercity line Closed rail station B Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Comparison Between European, North American and Pacific Asian Railways Issue Europe North America Pacific Asia Separation by region Separation of (markets) Infrastructure and Organisatio infrastructure from (private companies and operations publicly n operations (for concessions of vertically owned accountancy purposes) integrated companies) Market Passenger oriented Freight oriented Passenger oriented focus Infrastructure mainly publicly owned with a few exceptions (e.g. UK). Ownership Freight equipment and Private Public terminals increasingly privately owned and operated. Distances Short to medium Medium to long Short to long Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  European Union United States Ownership of rail Close to 90% state owned Entirely private infrastructure Technical Low axle load (standard 22,5t), electric High axle load (standard 36t), no electric characteristics traction limiting height of loads, differences traction, max. axle weight 31,8t, national among EU countries (loading gauge, track railroad infrastructure standards (USA and gauge, power supply standards) Canada) Capacity 400-750 meter in length, single stack, 80- 1300-3000m in length, double-stack, 250- 120TEU or 40-60 semitrailers 600TEU or 120-280 semitrailers Operators 10 large operators 6 large class I operators Competition Strong competition limited by informal Semi oligopolistic competition according to national and political regulations regions Operations Dense network with numerous long and Large network with main long-distance short-distance corridors. Average corridors from gateway ports intermodal train distance ca. 500km. Sea Average intermodal train distance 1000- containers and short-sea containers 1200km (US West) and 2500-3500km (US distribution in rail shuttle. East). Sea containers distribution in port-hinterland trains. After transloading to domestic containers and semitrailers distribution in port-hinterland trains. Domestic containers and semitrailers in mostly in West- East directions.  Main Advantages of Railway Infrastructure Investment Group Benefit Description Public sector Lower highway Potential substitution effect. Each intermodal train can take 280 trucks off the congestion and roadways, while each bulk and merchandise train can remove up to 500 trucks. maintenance Every passenger train displaces hundreds of automobiles. Improved safety and Freight railroads are safer than trucks. Railroads have one-fourth the rate of security fatalities of trucks for intercity transportation, on a per ton-mile basis. Economic growth Economies of scale provide long distance transport services at a lower cost. Environment On average, railroads are three or more times more fuel efficient than trucks. Shippers Lower transit times Reduced transit times lower shippers’ costs by lowering the inventory carrying costs of the transported goods. Lower logistics costs Due to economies of scale, freight rail can provide long-haul transportation services at a lower rate than trucks. Improved reliability Expanded rail capacity lowers the variability in transit time by reducing the uncertainty created from delays. Improved transportation on-time performance lowers manufacturing costs, both from reducing stock-outs and shut-downs, and from the ability to safely maintain lower inventory levels. Rail operators Increased ridership or Expanding freight capacity can increase the revenue of the freight railroads through traffic increased business opportunities. Improved reliability Expanded rail capacity lowers the variability in transit time by reducing the uncertainty created from delays. Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use. Intermodal Transport  Intermodalism and Transmodalism Intermodalism Origin Destination Road Rail Maritime Transmodalism Origin Destination Rail Rail Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Major Steps in Intermodal Integration Advanced Containers Intermodal Integration Advanced Terminals Regionalization Intermodal rail crane (1985) Doublestacking; IBCs (1985) Deregulation (1980s) COFC (1967) Transatlantic (1966); Containerships (1968) Standardization (size and latching) (1965) Containerization (1956) TOFC (1950s) Pallets (1930s) Time Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Integrated Transport Systems: From Fragmentation to Coordination Factor Cause Consequence Technology Containerization & IT Modal and intermodal innovations; Tracking shipments and managing fleets Capital investments Returns on investments Highs costs and long amortization; Improve utilization to lessen capital costs Alliances and M & A Deregulation Easier contractual agreements; joint ownership Commodity chains Globalization Coordination of transportation and production (integrated demand) Networks Consolidation and Economies of scale, efficiency and interconnection control. Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  The Benefits of Containerization Lower freight rates Lower storage costs Time reliability Lower insurance Lower packing and Higher frequency rates packaging costs Minimal load unit Faster inventory turnover Transport Inventory Service Costs Costs Level Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  The Four Revolutions of Containerization 1- Containerization of Maritime Transport Systems Container port 2- Containerization of Inland Transport Systems Gateway Pendulum Corridor Services Intermodal terminal 3- Intermodal and Transmodal Operations Inland Port Transshipment hub Transloading Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  The Four Revolutions of Containerization Phase 1 Phase 3 Inland Port Transshipment hub Phase 2 Phase 4 Gateway CER Intermodal terminal Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Intermodal Transport Chain Composition ‘Last mile’ Interchange Transfer ‘First mile’ Decomposition Local / Regional Distribution National / International Distribution Transport Terminal Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Intermodal Transportation as an Integrative Force Multimodal Point-to-Point Network Intermodal Integrated Network C C A A B B Transshipment Rail Road D D Transshipment F F E E Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Integrated Freight Transport Systems: Intermodal and Transmodal Operations Transloading facility Road Intermodal operations Distribution Center/ Cross-docking On-dock rail Rail Thruport Maritime Port container yard Intermediate Hub Transmodal operations Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Conditions and Outcomes of Intermodal Transport Conditions Outcomes Load Unit Intermediate and finished goods in load Lower Total Transport Costs From economies of scale and the use units of less than 25 tons. of more effective modes and intermodal operations. Modal Continuity Sequence of connected infrastructure; Modal shift Each mode according to their an intermodal transport chain. respective time and cost advantages. Transport Distance Distances above 500 km (longer than Consolidation / Deconsolidation The requirement to consolidate and one day of trucking) usually require deconsolidate load units at intermodal X intermodal transportation. terminals. Cargo Value Suitable for intermediate cargo values. Higher load factor Less LTL and more TL. Better utilization Low and high value shipments are of existing capacity. usually less suitable. Frequency of shipments Cargo flows need to be continuous and Less empty backhaul Less vehicle-km of empty backhauls in similar quantities. due to modal shift, higher load factor and consolidation. Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Multimodal Transport System National / Continental Maritime / Land interface Gateways and Hubs A B C Intermodal Corridor Gateway or Hub Regional E Intermodal terminal H Satellite Terminals A B C Distribution center and Inland Ports G F Modal Link Local E Competition or H Complementarity Distribution Centers F G Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Driving Forces of Containerization and Intermodalism Containerization Unitization Cellular ships Specialized terminals Land consumption Standardization Gantry cranes Transshipment Multi-rate structure Management and Mergers Modal integration Logistics coordination Through rates and Control over cargo Multimodal operators Deregulation billing Intermodalism Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Main Physical Characteristics Type of Containers Cubic Capacity Tare Weight Payload Weight Gross Weight Length / Width / Height 20 Footer 33.2 cubic meters 2,150 kg - 2,220 21,850 kg - 28,160 24,000 kg - 30,480 6.058 m / 2.438 m / 2.591 m (1,170 cubic feet) kg kg kg (20‘0" / 8'0“ / 8'6“) (4,740 lb - 4,894 (48,171 lb - 62,082 (52,911 lb - 67,197 lb) lb) lb) 40 Footer 67.7 cubic meters 3,720 kg - 3,740 26,760 kg - 28,760 30,480 kg - 32,500 12.192 m / 2.438 m / 2.591 m (2,391 cubic feet) kg kg kg (40'0“ / 8'0“ / 8'6") (8,201 lb - 8,245 (58,996 lb - 63,405 (67,197 lb - 71,650 lb) lb) lb) 40 Footer 76.4 cubic meters 3,730 kg - 3,950 26,750 kg - 28,550 30,480 kg - 32,500 12.192 m / 2.438 m / 2.896 m High Cube (2,700 cubic feet) kg kg kg (40'0“ / 8'0“ / 9'6") (8,223 lb - 8,708 (58,974 lb - 62,942 (67,197 lb - 71,650 lb) lb) lb) 40 Footer 67.7 cubic meters 4,810 kg 29,190 kg 34,000 kg 12.192 m / 2.438 m / 2.896 m High Cube (2,391 cubic feet) (10,604 lb) (64,353 lb) (74,957 lb) (40'0“ / 8'0“ / 9'6“) Reefer 45 Footer 86.5 cubic meters 4,740 kg 28,280 kg 33,020 kg 13.716 m / / 2.438 m / 2.896 High Cube (3,055 cubic feet) (10,450 lb) (62,350 lb) (72,800 lb) m (45'0“ / 8'0“ / 9'6“) 48 Footer 98.8 cubic meters 5,140 kg 25,340 kg 30,480 kg 14.630 m / 2.591 m / 2.908 m High Cube (3,489 cubic feet) (10,865 lb) (56,350 lb) (67,197 lb) (48'0“ / 8'6“ / 9'6 1/2") Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Container Identification System Owner Code (3 letters): TGH Product Group Code (1 letter): U Registration Number (6 digits): 759933 Check Digit (1 digit): 0 Size & Type Code (4 digits/letters): 45G1 Operational Characteristics Maximum weight: 30,480 kg Container weight: 3,870 kg Payload weight: 26,610 kg Cubic capacity: 2,700 cubic feet Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  World Container Traffic and 800 Throughput, 1980-2015 World Traffic 700 World Throughput Full Containers Empty Containers 600 Transshipment 500 Millions of TEUs 400 300 200 100 0 1987 1986 1984 1980 1988 1989 2015 1985 2011 2012 2010 2013 2014 2000 1995 1991 1992 1996 1997 2003 2007 1990 1993 1994 1998 1999 2001 2002 2004 2005 2006 2008 2009 Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Containerization Growth Factors Derived Substitutio Incidental Induced n Economic and income growth Functional and Trade Transshipment geographical imbalances (hubbing, relay Globalization diffusion Repositioning and (outsourcing) of empty intersection) Fragmentation New niches (commodities containers of production and and cold chain) consumption Capture of bulk and break-bulk and cannot be published, in whole or in part, in ANY form (printedmarkets Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to  Containerization Growth Factors Substitution-Based New niches (commodities and cold chain) Capture of bulk and break-bulk markets Incidental Trade imbalances Containeri Repositioning of empty containers zation Induced Transshipment (hubbing, relay and intersection) Derived Economic and income growth Globalization (outsourcing) Fragmentation of production and consumption Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Advantages of Containerization Factor Advantage Standard ISO standard. transport Specialized ships, trucks and wagons. product Unique identification number and size type code. Flexibility of Commodities (coal, wheat), manufactured goods, cars, frozen products. usage Adapted containers for dry cargo, liquids (oil and chemical products) and refrigerated cargo. Reuse of discarded containers. Costs Low transport costs; 20 times less than bulk transport. Economies of scale at modes and terminals. Velocity Fast transshipment operations. Low terminal turnaround times (port time reduced from 3 weeks to about 24 hours). Warehousing Own warehouse; Simpler and less expensive packaging. Stacking capability on ships, trains (doublestacking) and on the ground. Security and Contents of the container is unknown to carriers. Safety Can only be opened at the origin, at customs and at the destination. Reduced spoilage and losses (theft). Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Factor Challenges Challenge of Containerization Site constraints Large consumption of terminal space (mostly for storage); move to urban periphery. Draft issues with larger containerships (more than 13 meters). Infrastructure Container handling infrastructures and equipment (giant cranes, costs warehousing facilities, inland road, rail access), are important investments. Stacking Complexity of arrangement of containers, both on the ground and on modes (containerships and double-stack trains). Restacking difficult to avoid. Empty Many containers are moved empty (20% of all flows). movements Either full or empty, a container takes the same amount of space. Divergence between production and consumption; repositioning. Theft and losses High value goods and a load unit that can opened or carried (on truck). Vulnerability between terminal and final destination. 10,000 containers are lost at sea each year (fall overboard). Illicit trade Common instrument used in the illicit trade of goods, drugs and weapons, as well as for illegal immigration. Concerns about the usage of containers for terrorism. Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Advantages and Drawbacks of Containerization Advantages Drawbacks Standardization ISO standard (modes and Site Constraints Large consumption of terminal equipment). Unique identification space. Draft issues with larger number and size type code. containerships. Flexibility Commodities, manufactured Capital Intensiveness Container handling goods, liquids and refrigerated infrastructures and equipment goods. $ are important investments. Costs Low transport costs. Economies Stacking Complexity of arrangement of of scale at modes and terminals. containers, both on the ground $ and on modes. Velocity Fast transshipment operations. Repositioning Divergence between production Low terminal turnaround times. and consumption; repositioning. 20% of all containers. Warehousing Own warehouse; simpler and less Theft and Losses High value goods vulnerable to expensive packaging. Stacking thefts, particularly between capability. terminal and final destination. Security & Safety Contents unknown to carriers. Illicit Trade Illicit trade of goods, drugs and Reduced spoilage and losses. weapons, as well as for illegal immigration. Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Container Shipping Costs and Cargo Value Products Items / 40 Foot Retail Value (USD) Freight / Value Container (%) Low High Low High Low High Clothing (low value) 90,000 130,000 225,000 520,000 0.56 1.91 Clothing (mid 25,000 60,000 500,000 3,600,000 0.08 0.86 range) Sports shoes 18,000 28,000 350,000 2,520,000 0.12 0.23 Bicycles 1,200 1,600 240,000 480,000 0.60 1.79 Toys (low quality) 20,000 60,000 60,000 720,000 0.40 7.17 Consumer 2,800 3,600 170,000 430,000 0.67 2.53 electronics (small) Consumer 240 480 70,000 140,000 2.07 6.14 electronics (large) Appliances (small) 600 1,200 45,000 100,000 2.90 9.56 Appliances (large) 100 130 30,000 65,000 4.16 14.33 Furniture 250 600 20,000 150,000 1.93 21.50 (assembled) Furniture (flat 1,000 3,000 70,000 360,000 0.80 6.14 packed) Automobile parts 600 15,000 50,000 375,000 0.77 8.60  Containerized Cargo Flows along Major Trade Routes, 1995-2015 (in millions of TEUs) 2015 16.8 7.2 14.9 6.8 2.7 4.1 2014 15.8 7.4 15.2 6.8 2.8 3.9 2013 13.8 7.9 14.3 6.9 2.7 3.6 2012 13.1 6.9 13.7 6.3 2.7 3.6 2011 12.4 6.6 14.1 6.2 2.8 3.4 2010 12.3 6.5 13.3 5.7 2.7 3.2 2009 10.6 6.1 11.5 5.5 2.5 2.8 2008 13.4 6.9 13.5 5.2 3.3 3.3 2007 13.5 5.3 13.0 5.0 2.4 3.5 2006 13.2 4.7 11.2 4.5 2.1 3.7 2005 11.9 4.5 9.3 4.4 2.0 3.7 2004 10.6 4.1 8.2 4.3 1.9 3.3 2003 9.0 3.6 6.9 3.8 1.6 3.0 2002 8.4 3.4 5.1 2.6 1.4 2.6 Asia-North America 2001 7.4 3.4 4.7 2.5 1.6 2.6 North America-Asia 2000 7.3 3.5 4.7 2.5 1.7 2.7 Asia-Europe 1999 6.1 2.9 3.9 2.3 1.5 2.4 1998 5.4 2.9 3.6 2.1 1.7 2.3 Europe-Asia 1997 4.6 3.5 3.0 2.3 1.7 2.1 North America-Europe 1996 4.0 3.6 2.6 2.2 1.6 1.7 Europe-North America 1995 4.0 3.5 2.4 2.0 1.7 1.7 0 10 20 30 Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. 40 50 This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Containerized Cargo Flows along Major Trade Routes, 2012 Million TEUs 13.3 (+175%) Growth (2006-2012) 13.1 6.9 (+48%) Asia 16.0 27.0 North America 6.3 (+178%) 10.5 Imports (M TEUs) 13.7 (+293%) 2.7 (+55%) 17.3 Europe 3.6 (+23%) 9.0 Exports (M TEUs) Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Economies and Diseconomies of Scale in Container Shipping Costs per TEU Transshipment Inland Transportation Maritime Shipping Capacity in TEU Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Functional Integration of Supply Chains Maritime Distribution Inland Distribution Shipping Custom Rail / Trucking Trucking Agent Agent Freight Distribution Stevedore Forwarder center Shipping Line Carrier Customer Economies of scale Megacarrier Level of functional integration Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Impacts of River / Sea Shipping Origin Road / Rail Fluvial Port Fluvial Seaport Maritime River/sea Fluvial Road / Rail Destination A B C Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use. Economic Geography 6 – Transport and location 121EC A.Y. 2023/2024 Dr. Giuseppe Borruso Department of Economics, Business, Mathematics and Statistics University of Trieste E-mail. [email protected] Ph. +39 040 558 7008 Skype: giuseppe.borruso Learning Objectives  In this lesson we will: Introduce the importance of Transport in Location; Present the factors characterizing a transport system; Examine the growth factors in transport demand; Scale of spatial organization of transport The spatial structure of transport costs Route selection issues Air transport  Route map of the world's scheduled commercial airline traffic, 2009 By Jpatokal (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0) or GFDL (http://www.gnu.org/copyleft/fdl.html)], via Wikimedia Commons https://www.flightradar24.com/14.39,10.29/2  US Post Office Airmail Routes, 1921-26 Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Selected Transcontinental DC- 3 Routes, Late 1930s Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Early Intercontinental Air Routes, 1930s Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Shortest Air Route between London and Sydney, 1955 - 2006 Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Concorde Services, 1976-2003 Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Average Airfare (roundtrip) between New York and London, 1946-2015 (in 2012 dollars) $9,000 $7,900 $8,000 $7,000 $6,430 $6,000 $4,968 $5,000 $4,000 $3,490 $3,188 $3,160 $3,000 $2,222 $2,000 $1,250 $1,000 $780 $750 $725 $800$880 $1,000 $0 1940 1950 1960 1970 1980 1990 2000 2010 2020 Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Main Commercial Passenger Aircraft, 1935-2015 Aircraft Year of First Commercial Speed (km/hr) Maximum Range at Full Seating Capacity Service Payload (km) Douglas DC-3 1935 346 563 30 Lockheed L-649 Constellation 1943 560 8,200 95 Douglas DC-7 1953 555 7,500 105 Boeing 707-100 1958 897 6,820 110 Boeing 727-100 1964 870 4,300 134 Boeing 737-200 1967 780 3,500 97 Boeing 747-100 1970 907 9,045 385 McDonnell Douglas DC-10 1971 908 7,415 260 Airbus A300 1974 847 3,420 269 Boeing 767-200 1982 954 5,855 216 Boeing 747-400 1989 939 13,444 416 Boeing 777-200ER 1995 1030 14,300 300 Airbus A340-500 2003 886 15,800 313 Airbus A380 2007 1050 14,800 544 Boeing 787-8 2012 902 15,700 250 Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. Airbus This A350 (including graphics) is not material 2015 902 public domain and cannot be published, in whole or15,200 280or electronic) and on in part, in ANY form (printed any media without consent. This includes conference presentations. Permission MUST be requested prior to use. The World's Longest Nonstop Air Transport Routes, 2016  World Air Travel and World Air Freight Carried, 1950-2015 7,000 200 Passengers Freight 6,000 Billions of passengers-km 5,000 150 Billions of tons-km 4,000 100 3,000 2,000 50 1,000 0 0  Freight) and Economic 30% Growth, 1950-2015 25% 20% 15% 10% Copyright © 1998-2016, Dr. Jean- 5% Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or 0% classroom use ONLY. This material 1950 1955 1960 1965 1970 (including 1975 graphics) 1980 is not public 1985 1990 1995 2000 2005 2010 2015 domain and cannot be published, -5% in whole or in part, in ANY form (printed or electronic) and on any media without consent. This -10% includes conference presentations. Passengers-km Permission MUST beTons-km requestedGWP prior to use. Routes: Conventional and Polar Copyright © 1998-2016, Dr. Jean- Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use. Airline Deregulation and Hub- and-Spoke Before Deregulation Networks After Deregulation Hub Hub Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Strategies of Low-Cost Carriers On-board Optimum use of seating space. operations Minimal crew. Limited and paying cabin service. Aircraft Few (often one) types of aircraft used to minimize maintenance operations costs. Stair boarding instead of air bridges. Maximal usage of runway length (take-off thrust and braking on landing). Fast turn around to maximize aircraft use. No freight being carried. Service Point-to-point services. network Destinations commonly of less than two hours apart. Usage of secondary airports (lower gate rates). Booking Online booking to minimize transaction costs. No travel agent commissions.  Strategies Used by Airlines to Save Fuel Dimension Strategy Fleet Retiring less fuel efficient aircrafts (e.g. DC-9, DC10, MD-80). Switching to more fuel efficient aircrafts (e.g. A330, A319). Operations Less engine idle at gates (electrical systems). Lower flying speed (-5%). More frequent plane and engine washing. On board Lighter seats. Removal of seat-pocket documents (e.g. magazines). Less water in bathrooms. Lighter service carts. Passengers Weight restrictions for luggage. Surcharges for first or second check-in luggage. Passengers weight surcharges (?) Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Selected Low-Cost Carriers Airline Country 2005 Fleet 2005 Revenue (USD Millions) Southwest USA 454 B737s 7,584 EasyJet UK 62 A319s; 43 B737s 2,365 Ryanair Ireland 107 B737s 2,044 jetBlue USA 89 A320s; 19 ERJs 1,701 Air Berlin Germany 8 A319s/A320; 40 737s; 3 Other 1,457 Virgin Blue Australia 47 B737s 1,335 WestJet Canada 56 B737s 1,197 Gol Brazil 47 B737s 1,140 Frontier USA 51 A318s/A319s/A320s 944 AirAsia Malaysia 6 A320s; 21 B737s 174 Copyright © 1998-2016, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.  Air Freedom Rights First Second Third Home Country B Country A Fourth Fifth Sixth Seventh