aeronautics executive mba econonics of transport

8/14/2019 Aeronautics Executive MBA Econonics of Transport

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Aeronautics Executive MBA

Economia de Transporte

ISEG 4 de Abril de 2008

Slides adaptados de:Jean-Paul Rodrigue, 2006Hofstra University, Hempstead, NY

Vitor [email protected]

A. Economia, Comrcio e TransporteB. Modos de TransporteC. Custos de TransporteD. Logstica e TerminaisF. Rodovia e Intermodalidade

G. FerroviaH. MartimoI. AreoJ. AmbienteL. Transporte Urbano





2/145

A. Economia, Comrcio e TransporteB. Modos de TransporteC. Logstica e TerminaisF. Rodovia, Ferrovia e IntermodalidadeG. MartimoI. AreoJ. Externalidades

L. Transporte Urbano




Global GDP, 2002

32,3%

12,3%

6,1%15,1%

34,2%

United States

Japan

Germany

Other G7

Rest o f t he world


3/145

Share of Global GDP Growth, 1995-2002

0

5

10

15

20

25

China US Other Asia EU Japan Rest of the

World

World GDP per Capita, 2000 ($US)

$5,000 to $12,000

$2,000 to $5,000

Less than $2,000

$12,000 to $20,000

More than $20,000

Not Available


4/145

Share of Asia in World Trade, 1980-2003

10

12

14

16

18

20

22

24

26

28

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002

Exports

Imports


5/145

World Exports of Merchandise, 1950-2005

0

1

2

3

4

5

6

7

8

9

10

11

1950

1952

1954

1956

1958

1960

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

Value(TrillionsofCurrent$US)

0

2

4

6

8

10

12

14

16

ShareofWorldGDP(%)

Value

Share

Changes in the Value Worlds Merchandise Trade, Production and GDP, 1950-2004 (in %)

-10

-5

0

5

10

15

20

25

30

1950

1953

1956

1959

1962

1965

1968

1971

1974

1977

1980

1983

1986

1989

1992

1995

1998

2001

2004

Total Merchandise Trade

World GDP

World Merchandise Production


6/145

Worlds 10 Largest Exporters and Importers, 2004

0 200 400 600 800 1.000 1.200 1.400 1.600

Germany

United States

China

Japan

France

Netherlands

Italy

United Kingdom

Canada

Belgium

Billions of $US

Imports

Exports

Share of World Goods Exports, Selected Countries, 1950-2004

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

18,0%

20,0%

1950

1953

1956

1959

1962

1965

1968

1971

1974

1977

1980

1983

1986

1989

1992

1995

1998

2001

2004

United StatesJapanGermanyChinaSaudi Arabia


7/145

Value of Chinese Exports and Received FDI, 1983-2004 (Billions of $US)

0

100

200

300

400

500

600

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

Exports

0

10

20

30

40

50

60

70

FDI

Exports

FDI

Trade by Ocean, 1995

0% 20% 40% 60% 80% 100%

1990

1995Pacific

Atlantic

Other


8/145


9/145

Platform Corporation

Manufacturers

Marketing / Retail

Distribution

R&D

Platform

Share of Containerized Cargo in Global Trade, 1980-2000

0

100

200

300

400500

600

700

800

1980 1985 1990 1995 2000

Milliontons

Containerized Cargo

Other General Cargo


10/145

A B

Rail

Origin Destination

Transport Chain

Maritime Road

International Trade

Transshipment

International Trade and Transportation Chains

A B

Assembly Disassembly

Trade barrier

Customs

Modal Profile of Freight Transportation, United States

Mode Value Volume Service Distance

Truck Moderate to high Loads of less than 50,000 lbs. On-time performance above90%.

Driver can go 500 miles perday. 2/3 of tonnage carried

over less than 100 miles.

Rail Moderate to low Multiple car loads. No weightrestrictions.

4 to 7 days delivery time. 60 to85% on-time performance.

Average haul length between600 and 800 miles.

Intermodal Moderate to high No we ight restricti ons. 3 days for cross country. On-

time performance betweentruck and rail.

Average haul between 700

and 1,500 miles.

Air High Small. Most loads less than100 lbs.

Normally overnight or secondday.

More than 1,300 miles.

Inland Water Moderate to low Bulk shipments. Varies according to segment.Competitive with rail.

Between 250 and 1,600 miles.

Coastal Water Moderate to low Containers, general freightand bulk shipments.

Function of distance. Between2 to 5 days.

Between 500 and 2,000 miles.

InternationalWater

High to low Mainly containers and bulkshipments.

7 to 10 days trans-Atlantic andtrans-Pacific routes.

More than 2,600 miles.

Pipeline Low Bulk shipment of liquids andgazes.

According to demand. 0 to 20

mph.

825 miles average distance for

crude oil.


11/145

Economic Benefits of Efficient Transportation

Direct TransportSupply

Direct TransportDemand

IndirectMicroeconomic

IndirectMacroeconomic

Income from

transportoperations (faresand salaries)

Access to widerdistributionmarkets and

niches

Improved

accessibility Time and cost

savings Productivity gains Division of labor Access to a wider

range of suppliersand consumers Economies of

scale

Rent income

Lower price ofcommodities

Higher supply ofcommodities

Formation of

distributionnetworks

Attraction andaccumulation ofeconomicactivities

Increasedcompetitiveness Growth of

consumption Fulfilling mobility

needs

The Share of Transportation in the GDP, United States 2000

24,2%

14,6%

12,2%10,8%

7,0%

6,9%

24,3%

Housing

Health Care

Food

Transportation-related

Education

Recreation

Other


12/145

Employment in Transportation Occupations, United States, 1985-2001

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

5.000

1985 1990 1995 2001

Thousands

Public transportationattendants

Air transportation

Water transportation

Rail transportation

Motor vehicle operators

Transport Impacts on Economic Growth

TransportImprovements

Commodity

MarketLabor Market

Expansion New Activities

Growth


13/145

Transportation and the Economy

Transport Infrastructure Investment

Additional Transport Capacity, Efficiency, Reliabilityand Level of Service

Lower TransportCosts

Shorter Transit Times Business Expansion

Increased Productivity

Increased Competitiveness

Economic Growth

Self Reliance

Regional TradeTrade andTransport

Gateway

Trade andTransport

Region A Region B

InternationalTrade

Product A

Product B

Product C

Product D

Product E

EconomicProduction andSpecialization


14/145

A. Economia, Comrcio e TransporteB. Modos de TransporteC. Custos de TransporteD. Logstica e TerminaisF. Rodovia e IntermodalidadeG. FerroviaH. MartimoI. Areo

J. AmbienteL. Transporte Urbano




A. Economia, Comrcio e TransporteB. Modos de TransporteC. Logstica e TerminaisF. Rodovia, Ferrovia e Intermodalidade

G. MartimoI. AreoJ. ExternalidadesL. Transporte Urbano





15/145

Ton-Miles of Freight Transported within the United States, 1975-2000 (millions)

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

3.500.000

4.000.000

1975 1980 1985 1990 1995 2000

Air

Water

Pilelines

Truck

Rail

30


16/145

Market Share by Freight Transport Mode, Western Europe, 1980-2002 (in ton-km)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1980 1985 1990 1995 2000 2002

Inland Waterways

Road

Rail


17/145

Market Share by Freight Transport Mode, United States, 1980-2000 (in ton-miles)

0%

10%20%

30%

40%

50%

60%

70%

80%

90%

100%

1980 1985 1990 1995 1999

Water

Truck

Rail

Growth Factors in Transport Demand

QuantityofPassenge

rsorFreight

Average Distance

Growth inproduction andconsumption

Income growth

Industrial relocationEconomic specialization

Suburbanization

Passe

nger

orton

-kms

KM

PassengersFreight


18/145

Share of Total Domestic Freight Activity by Mode, G7 Countries, 1996

0%

20%

40%

60%

80%

100%

Can ad a Fr an ce Ger man y Italy J ap an Un ited

Kingdom

United

States

%oftotaldomesticmetricton-km

Road

Rail

Oil Pipeline

Water

Air

Share of Total Domestic Passenger Activity by Mode, G7 Countries, 1996

0%

20%

40%

60%

80%

100%

Canada Franc e Germany Italy Jap an United

Kingdom

United

States

%oftotaldomesticpassenger-km

RailRoad

Air


19/145

Transportation Modes

Road Rail Air Maritime

Local

Speed

Price

International

Capacity

Price

Global

Value

Speed

Global

Capacity

Price

Modal Shares of U.S.-NAFTA-Partner Merchandise Trade by Value and Weight, 2004

0

10

20

30

40

50

60

70

Truck Rail Pipeline Air Water Other and

unknown

Value

Weight


20/145

Classic Transport Demand / Supply Function

Traffic

CostDemand Supply

T1

C1

D

S1S2

C2

T2

12

12

CC

TTElasticity

=

Equilibrium

Performance Comparison for Selected Freight Modes

Barge

Hopper car

100 car train unit

Semi-trailer t ruck

1500 Tons52,500 Bushels453,600 Gallon s

100 Tons3,500 Bushels30,240 Gallon s

10,000 Tons350,000 Bushels3,024,000 Gallon s

26 Tons; 910 Bushels7,865 Gallon s9,000 for a tanker truck

124 tons

Capacity

5

57.7(865.4 for 15 barges in tow)

Truck EquivalencyVehicle

3.8

384.6

1

Post-panamax co ntainership5,000 TEU 2,116

9,330VLCC

300,000 ton s2 million barrels of oil

747-400F


21/145

Passenger Transport by Mode, Japan, 1950-1999

0

200

400

600

800

1000

1200

1400

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 1999

BillionsofPassengerKilometers

Airline

Railway

Bus

Auto

Evolution of Chinese Freight Traffic, 1990-2000 (in million tons)

0

2.000

4.000

6.000

8.000

10.000

12.000

Highways Rail Waterways Pipelines &other

19902000


22/145

World Automobile Production and Fleet, 1965-2004

100

150

200

250

300

350

400

450

500

550

600

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

Fleet(millions)

16

18

2022

24

26

28

30

32

34

36

38

40

42

44

Production(millions)

Fleet

Production

Transportation and the Supply and Distribution Chain

ActivitySupply Distribution

Transport Transport

Supplier Customer


23/145

Components of Transport Cost

A BFriction of Distance

Transaction Costs

Shipment

Fixed and Operating Transport Costs

Mode Fixed/Capital Costs Operating Costs

Rail or Highway Land, Construction, Rolling Stock Maintenance, Labor, Fuel

Pipeline Land, Construction Maintenance, Energy

Air Land, Field & TerminalConstruction, Aircraft

Maintenance, Fuel, Labor

Maritime Land for Port Terminals,Cargo Handling Equipment, Ships

Maintenance, Labor, Fuel


24/145

Distance

Costs

1 2

3 4Transshipment Costs

Different Friction of Distance Functions

Fixed Costs

Zone Change

Different Components of Transport Time

Time

Distance

Transport Time Timing

Punctuality Frequency


25/145

Freight Transportation Service Spectrum

High Low

Air Cargo Truck Rail Intermodal Rail Carload Rail Unit Water

Fastest, most reliable

and most visible.

Lowest weight, highest

value and most time-

sensitive cargo.

Slower, less reliable and

less visible.

Highest weight, lowest

value and lest time-

sensitive cargo.

Fast, reliable and visible.

Range of weight and

value.

Rail intermodal

competitive with truck

over longer distances.

$1.5 / lbs 5 - 10 / lbs 3 / lbs 1 / lbs 0.5 - 1 / lbs 0.5 / lbs







26/145

Network Structures

Centralized Decentralized Distributed







27/145

A B C

D E F

Network Strategies to Service a Set of Locations

Absolute and Relative Distance in a Network

10 km 30 minutes


28/145

Evolution of Logistical Integration, 1960-2000

Demand Forecasting

Purchasing

Requirements Planning

Production Planning

Manufacturing Inventory

Warehousing

Materials Handling

Packaging

InventoryDistribution Planning

Order Processing

Transportation

Customer Service Strategic Planning

MaterialsManagement

PhysicalDistribution

LogisticsSupply ChainManagement

Information Technology

Marketing

1980s

1990s

2000s

Flows

Market

Transport Chain

Parts and rawmaterials

Manufacturingand assembly Distribution

Commodity Chain

MarketS

tage

Bulk shipping Unit shipping

High volumesLow frequency

Low volumesHigh frequency

LTL shipping

Average volumesHigh frequency


29/145

Product Life Cycle

Sales

Stage 1 Stage 2 Stage 3

Monopoly Competition

Research anddevelopment

Maturity Decline

First comp et itors Mass product ion

Innovatingfirm

Comp

etitor

s

Growth

Stage 4

PromotionIdeaDecline ofproduction

Producer-Driven and Buyer-Driven Global Commodity Chains

Producer-Driven CommodityChains

Buyer-Driven CommodityChains

Drivers of GlobalCommodity Chains

Industrial Capital Commercial Capital

Core Competencies Research & Development;Production

Design; Marketing

Barriers to Entry Economies of Scale Economies of Scope

Economic Sectors Consumer Durables; IntermediateGoods; Capital Goods

Consumer Nondurables

Typical Industries Automobiles; Computers; Aircraft Apparel; Footwear; Toys

Ownership ofManufacturingFirms

Transnational Firms Local Firms, predominantly indeveloping countries

Main Network Links Investment-based Trade-based

Predominant NetworkStructure

Vertical Horizontal


30/145

The Automobile Supply Chain

Supplyingindustries

Steel andother metals

Rubber

Electronics

Plastic

Glass

Textiles

Bodies

Components

Engines and transmissions

FinalAssembly

Manufacture andstamping of body

panels

Body assemblingand painting

Manufacture of mechanical and electricalcomponents (wheels, tires, seats, breaking

systems, windshields, exhausts, etc.)

Forging and casting of

engine and transmissioncomponents

Machining and

assembly of enginesand transmissions

Consumermarket

Cereals Supply Chain

Farm

Wood PulpMfg

ProcessingFacility

Packaging

Label Mfg

Converter Distributor Store

Packaged Cereal

Packaged Cereal

Grain

Wood Pulp

Paperboard

LabelsWood Pulp

Cereal

Distribution and Retailing

ManufacturingExtraction


31/145

Logistics Operations

Demand

Transportation

Stock

Man

agem

ent

Purch

aseO

rders

Proc

essin

g

Handl

ingPackaging

Purcha

se

Sales

Pr

oduction

Sc

heduling

Warehousing


32/145

Logistics and Integrated Transport Demand

Logistics(Integrated Demand)

Materials Management

Physical Distribution

InducedDemand

DerivedDeman

d

Value-Added Functions of Logistics

Production

Location

Time

ControlLogistics


33/145

Changes in the Relative Importance of Logistical Functions in Distribution Systems

0% 20% 40% 60% 80% 100%

Supply Driven

Demand Driven

Inventory

Transport System

Information System

Total Logistics Costs Tradeoff

Costs

Shipment Size or Number of Warehouses

Transport Costs

Total Logistics Costs

Warehousing Costs


34/145

Logistical Improvements, Manufacturing Sector, 1960-2000

0

2

4

6

8

10

12

14

16

18

20

1960s 1970s 1980s 1990s 2000s

%ofGDP

0

5

10

15

20

25

30

35

40

Days

Logistics Costs (% GDP)

Inventory Costs (% GDP)

Cycle Time Requirements (days)

Worldwide Logistics Costs, 2002

39%

27%

24%

6%4%

Transportation

Warehousing

Inventory Carrying

Order Processing

Administration


35/145

Logistics Costs and Economic Development

Agriculture Mining Industry Services Information

Logistic

sCosts/GNP

Economic Development

United States

Japan

Singapore

Argentina

Kenya

Brazil Poland

Ukraine

Belgium

Canada

Average Order Lead Times of European Manufacturers, Wholesalers, and Retailers

0

5

10

15

20

25

1985 1990 1995 2000 2005 2010

Days


36/145

Third and Fourth Party Logistics Providers

Modes

Distribution Centers

Management

3 PL

3 PL

4 PL

3 PL

3 PL

Manufacturers

PartsandRaw

Materials

Retailers

Consumers

Services Offered by Third Party Logistics Providers

Standard Advanced Complete

Warehouse management

Transportation

DispatchingDelivery documentation

Customs documentation

Assembly

Packaging

ReturnsLabeling

Stock accounting

Order planning andprocessing

IT management

Invoicing

Payment collection


37/145

Forward and Reverse Distribution

Consumers

Producers Distributors

CollectorsRecyclers

Forward ChannelReverse Channel

Suppliers

Characteristics of Large-scale Distribution Centers

Size Larger More throughput and less warehousing.

Facility One storey; Separateloading and unloadingbays

Sorting efficiency.

Land Large lot Parking space for trucks; Space for

expansion.

Accessibility

Proximity to highways Constant movements (pick-up anddeliveries) in small batches (often LTL);Access to corridors and markets.

Market Regional / National Less than 48 hours service window.

IT Integration Sort parcels; Control movements fromreceiving docks to shipping dock;Management systems controllingtransactions.


38/145

Cross-Docking Distribution Center

Suppliers

Customers

Receiving

Shipping

Sorting

Distribution Center Before Cross-Docking

LTL

Suppliers

Customers

After Cross-Docking

TL

TL

Cross-DockingDC

Logistics Networks

Dispersed

Clustered

Point to Point Hub-and-spoke

Locations

Network Structure


39/145

Logistics and E-commerce

Retailer

Supply chain

E-Retailer

Customers Customers

Supply chain

DC

DC

Trad

itionalLogistics

E-Logistic

s

City Logistics

Urb

anTerm

inal

DC Central Ci ty


40/145

Gateways and Hubs

Gateway Hub

Corridor

Modal Gateways

Border

Logistics

Manufacturing

Land

Air

Maritime


41/145


42/145












43/145

Modal Competition

A

B

Mode

12

3

A

B

Infrastructure / Route

A

B

A

B

4 5

6

A

B

Market Area

Modal Split in the United States by Passenger Travel Distance, 1995

0

10

20

30

40

5060

70

80

90

100

0,1 1 10 100 1000 10000Distance in km

Non-motorized

AutomobileAir

30 minutes walking

1 day driving


44/145

MaturityShiftInertia

Principles of Modal Shift

ModalShare(A/B)

Time

ComparativeAdva

ntages RealModal

Share

Expecte

dModa

lShare

Underper

formance

Overpe

rformance

Integrated Transport Systems: From Fragmentation to Coordination

Factor Cause Consequence

Technology Containerization & IT Modal and intermodalinnovations; Tracking shipmentsand managing fleets

Capital investments Returns on investments Highs costs and long

amortization; Improve utilization tolessen capital costs

Alliances and M & A Deregulation Easier contractual agreements;joint ownership

Commodity chains Globalization Coordination of transportation andproduction (integrated demand)

Networks Consolidation andinterconnection

Multiplying effect


45/145

Intermodal Transport Chain

Composition

Connection

Interchange

DecompositionLocal / Regional Distribution

National / International Distributio n

Transport Terminal

40 (12.2 m)

9 (2.7 m)

85 (25.9 m)

Piggyback (TOFC)

65 (19.8 m)

Doublestack (COFC)18 (5.5 m)

Piggyback and Doublestack Train Cars

17 (2.7 m)


46/145

World Container Traffic, 1980-2005

0

50

100

150

200

250

300

350

1975 1980 1985 1990 1995 2000 2005 2010

MillionTEU

American Intermodal Rail Traffic, 1999-2005

0

2

4

6

8

10

12

14

1999 2000 2001 2002 2003 2004 2005

Millions

Trailers

Containers


47/145

Multimodal and Intermodal Transportation

AC

D

F

E

B

Multimodal Point-to-Point Network

AC

D

F

E

B

Intermodal Integrated Network

Rail

Road

Transshipment

Transshipment

Multimodal Transport System

Nation

Reg

ion

Locality

Transshipment

Handling

Terminals FlowsModal Function

Intermodal Function

Competition / Cooperation

Maritime / Land interface

Articulationpoints

Distributioncenters


48/145

Average Length of Haul, Domestic Freight in the United States, 1960-2003 (in miles)

0

200

400

600

800

1000

1200

1400

1600

1800

2000

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Miles

Air carrier

Truck

Rail

Coastal

Average Length of Haul, Domestic Passenger Modes in the United States, 1960-2003 (in miles)

0

100

200

300

400

500

600

700

800

900

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Air carrier,

Bus, intercity

Amtrak

Commuter rail


49/145

Management andcoordination

Control over cargo

Mergers

Intermodaloperators

Modal integration

InformationSystem

Logistics

Deregulation

Driving Forces of Containerization and Co-modal Transport

Containerization

Unitization

Standardization

Cellular ships

Gantry cranes

Specializedterminals

Transshipmentproductivity

Land consumption

Multi-rate s tructure

Multimodal Transportation

Containerized Cargo Flows along Major Trade Routes, 1995-2004 (in millions of TEUs)

4,0

5,2

5,6

7,2

8,8

10,2

11,8

3,5

3,3

3,3

3,9

3,9

4,1

4,3

2,8

3,5

4,5

5,9

6,1

7,3

8,4

2,3

2,7

3,6

4,0

4,2

4,9

5,6

1,2

1,3

2,2

2,7

1,5

1,7

1,8

1,4

1,7

2,9

3,6

2,6

2,9

3,0

0 5 10 15 20 25 30 35

1995

1998

2000

2001

2002

2003

2004

Asia-USA

USA-Asia

Asia-Europe

Europe-Asia

USA-Europe

Europe-USA


50/145

US Containerized Trade with Asia, 1996-2004 (in 1,000 TEUs)

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

1996 1997 1998 1999 2000 2001 2002 2003 2004

Exports to Asia

Imports from Asia

Distance

Transportcosts

perunit Road

Rail Maritime

D1 D2

C1 C2

C3

Distance, Modal Choice and Transport Costs


51/145

Value Per Ton of U.S. Freight Shipments by Transportation Mode, 2002

$667

$4.892

$611

$88.618

$37.538

$1.480

$775

$401

$241

$198

1 10 100 1.000 10.000 100.000

All Modes

Multiple modes

Single modes

Air (incl. truck and air)

Parcel, U.S.P.S, or cou rier

Truck and rail

Truck

Water

Pipeline

Rail

Intermodal Transportation Cost Function

Costs

Origin Destination

Composition

Connection

Connection

Interchange

DecompositionC(T)

Transshipment

C(cp)

C(cn)

C(I)

C(cn)

C(dc)Local / Regional Distribution Cost

National / International Distributio n Cost


52/145

Time and Cost of Transport Activities Involving Moving a 40 Foot Container between the American EastCoast and Western Europe

0 20 40 60 80 100 120 140 160

Moving container f rom loading ramp to sto rage

Container wait ing for p ickup af ter stuf f ing

Loading container on road trai ler

Road transport to port terminal

Wait ing for admission to port terminal

Transfer from road trailer to stack

Wait ing in stack

Unstacking and transfer to terminal trailer

Transfer/loading onto ship

Containership travel time (NY-Rotterdam)

Tranfer/unloading off ship

Transfer to stack

Wait ing in stack

Tranfer from stack to road trailer

Clearance and inspection

Road transport , port terminal to inland depot

Unloading container at inland depot

Storage at inland depot

Moving container to consignee

0 200 400 600 800 1000 1200 1400 1600 1800 2000

Time (hours)

Cost ($US)

Cumulative Cost and Time of Moving a 40 Foot Container between the American East Coast and WesternEurope

0

500

1000

1500

2000

2500

3000

3500

0 100 200 300 400 500

Cumulative time (hours)

Cumulativecos

t(US$)


53/145

Container Transport Costs

23%

18%

21%

25%

13%

Ships

Containers

Terminals

Inland Transport

Other

Container Transport Costs from Inland China to US West Coast ($US per TEU)

0 500 1000 1500 2000 2500

Land access to port(China)

Port handling (China)

Maritime transport

Port handl ing (USA)

Land access to final

destinatio n (USA)


54/145

Carrying Capacity of Containers (in cubic feet)

1.169

2.385

2.690

3.026

3.471

3.830

3.955

4.090

0 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 4.500

20 feet standard container


40 feet hi -cube container




53 feet hi -cube container

53 feet truck

World Rail Passenger Traffic, 1980-2004

0,000

0,200

0,400

0,600

0,800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Billionsofpasseng

ers-km

Asia

America

Africa and Middle East

Europe

Total Passengers-km


55/145

World Rail Freight Traffic, 1997-2004

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

1997 1998 1999 2001 2002 2003 2004

Billionsoftons-km

Asia

America

Africa and Midd le East

Europe


56/145

Types of Rail Corridors

Type Function Examples

Short distance Modal shift, improved capacity.Public transit

Alameda, Panama

Hinterland access Expand market area, reducedistribution costs & congestion

PIDN, Virginia Inland port

Inter-metropolitan Provide accessibility to a systemof cities

Europes HST network

Landbridge Long distance container flows,continuity for international trade

North America

Circum-hemispheric Integrated global transportchains

Northern East-WestCorridor

Comparison Between European and North American Railways

Issue Europe North America

OrganisationSeparation of infrastructure fromoperations (for accountancypurposes)

Separation by region (markets)(private companies andconcessions of vertical integratedcompanies)

Market focus Passenger oriented Freight oriented

OwnershipMainly public with a fewexceptions (e.g. UK)

Private

Distances Short Medium to long


57/145

113

114


58/145












59/145


60/145


61/145


62/145


63/145

International Seaborne Trade and Exports of Goods, 1955-2004

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

1955

1958

1961

1964

1967

1970

1973

1976

1979

1982

1985

1988

1991

1994

1997

2000

2003

Seaborne Trade (billions of ton s of go ods loaded)

Exports of Goods (trillions of $US)

Domains of Maritime Circulation

Nile

East / Southeast Asia

Mississippi / Great Lakes / St. Lawrence

Amazon

Rhine / Danube

SuezHormuz

Panama

Malacca

Bosporus

Magellan

Good Hope

Gibraltar

Bab el-Mandab


64/145

127

Types of Maritime Routes

Port-to-Port Pendulum Round-the-World


65/145

Evergreen Round-the-World Route, Westbound

Tokyo

Osaka

Pusan

HakataKaohsiung

Hong Kong

Laem Chabang

Columbo

Le HavreZeebrugge

RotterdamHamburgThamesport

New YorkNorfolk

Charleston

Colon

Los Angeles

Three Major Pendulum Routes Serviced by OOCL, 2006

Fos

Tokyo

Genoa

Ningbo

Hamburg

Shanghai

Le Havre

KaohsiungHong Kong

Singapore

Barcelona

Rotterdam

Port Kelang

Southampton

Laem Chabang

OaklandLos Angeles

NorfolkNew York

Charleston

Atlantic Express (ATX)

European Union / Mediterranean (EUM)

South China Express (SCX)

27 Days

49 Days

39 Days

Note: Paths are approximate


66/145

Liner Transatlantic Crossing Times, 1838 1952 (in days)

0

2

4

6

8

10

12

14

16

1830 1855 1880 1905 1930 1955

Ton-km Shipped by Maritime Transportation, 1970-2004 (in billions)

0 5.000 10.000 15.000 20.000 25.000

1970

1980

1985

1990

1995

2000

2001

2002

2003

2004

Oil

Iron Ore

Coal

Grain

Containers and other


67/145

Maritime Traffic per Continent and Ocean, 1960-1990

3%

9%

8%

16%13%

31%

18%

10%

15%

15%

60%

4%

8%

8%

6%

25%

28%

16%

15%

25%

15%

40%

Atlantic

Indian

Pacific

Mediterranean

1960

1990

Registered World Fleet, 1914-2000

0

100.000

200.000

300.000

400.000

500.000

600.000

1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

0

1

2

3

4

5

6

7

AverageTonnage(in

1,0

00tons)

Number of ships

Total gross tonnage (1,000s)

Average ton nage


68/145

Vessel Size Groups (in dead weight tons)

0 50.000 100.000 150.000 200.000 250.000 300.000 350.000 400.000 450.000 500.000

ULCC

VLCC

Suezmax

Aframax

Capesize

Panamax

Handymax

Handy

Crude Oil Tankers

Dry Bulk Carriers

Merchant Fleet of the World, Tonnage Registered per Ship Size, 1985-2000

0

100.000

200.000

300.000

400.000

500.000

600.000

1985 1990 1995 2000

GrossTons

Over 100,000

50,000- 99,999

20,000- 49,999

10,000- 19,999

4,000-9,999

500-3,999

100-499


69/145

Operating Costs of Panamax and Post-panamax Containerships (in USD)

$0

$2

$4

$6

$8

$10

$12

$14

$16

Panamax (4,000 TEU) Post-panamax (10,000TEU)

Millions

Port charges

Fuel

Administration

Stores and lubes

Insurance

Repair and maintenan ce

Manning

Pendulum Services and Cabotage

A

B

C

D

E

F

Cabotage

Country 1

Country 2

Pendulum Service


70/145

Maritime Shipping Characteristics

Tramping Liner Shipping

Transportation Demand

Number of shippers Few Many

Quantity Large Small

Density High (weight) Low (volume)

Unit value Low High

Regularity Low High

Transportation Supply

Contract Vessel Freight (bill of lading)

Vessels Liquid and bulk General cargo

Frequency Low High

Implications

Freight Liquid and main bulk commodities Minor bulk and general cargo (containerized)

Services Supply / demand regulation Prior to demand

Freight elasticity Low Low

Markets Developing / developed countries Developed / developed countries

Share in Maritime Transport (2000)

Tons 70% 30%

Value 20% 80%

Cargo, Trade and Ship Characteristics

Cargo Type Trade Characteristics Vessel Size

General Cargo

Conventional Varied small consignments, Numerousconsignees, Slow handling rates, Variousroutes, Numerous ports

Small

Unitized

(containers)

More uniform cargo, Rapid handling, Many ports Small to medium

(size increasing)

Dry Bulk

Grain Small to medium consignments, Varied handlingrates, Many restrictive ports

Small to medium

Ores/coal Large consignments, Long hauls, Moderatehandling rates, Specialized terminals, Few ports

Medium to very large

Liquid

Crude oil Very large consignments, Long hauls, Fewroutes, Specialized terminals, Few ports

Very large to ultralarge

Oil products Small shipments, Numerous consignees, Manyports

Small to medium


71/145

Tons Shipped by Maritime Transportation, 1981-2000 (in millions)

0

1000

2000

3000

4000

5000

6000

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Other

Grain

Ore/coal/minerals

Oil

Maritime Engagement of the 15 largest Traders, 2000 (in %)

0,0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% 14,0% 16,0%

United States

Germany

Japan

United Kingdom

France

Canada

China

Italy

Hong Kong, China

Netherlands

Belgium

Mexico

Korea, Rep. of

Taipei, Chinese

SingaporeShare of world fleet in terms of d wt

Share of world trade (exports + imports)


72/145

Inland Waterway Traffic, Western Europe, 1970-2000 (in billion ton-kms)

0

20

40

60

80

100

120

140

1970 1980 1990 1995 2000

UK

Netherlands

Germany

France

Finland

Belgium

Factors Impacting Maritime Shipping Networks

Frequency of Service

2 2 2 2

2 2 2

Port calls per week

Fleet and Vessel Size Number of Port Calls

2 2 2 2

2 2 2

4,000 TEU 5,000 TEU

3 3 3

3 3 3

Port calls per week


73/145

Global Fleet of Containers, 2000 (in TEUs)

0 1.000.000 2.000.000 3.000.000 4.000.000 5.000.000 6.000.000 7.000.000

2000

1999

20 Foot

40 Foot

Other

Five Generations of ContainershipsFirst Generation (1956-1970)

Converted Tanker

Second Generation (1970-1980)

Cellular Containership

Third Generation (1980-1988)

Panamax Class

Fourth Generation (1988-2000)

Post Panamax Plus

Fifth Generation (2000-?)

Post Panamax

Converted Cargo Vessel

TEULength

135 m

200 m

500

800

215 m1,000 2,500

250 m 3,000

290 m 4,000

275 305 m

4,000 5,000

335 m5,000 8,000

Draft

< 9 m< 30 ft

10 m33 ft

11-12 m36-40 ft

11-13 m36-43 ft

13-14 m43-46 ft


74/145

Characteristics of Some Historical Containerships

Year Name Capacity(TEU)

Yard Length (m) Width (m) Draft (m) Speed(knots)

1956 Ideal X 58 US 174.2 23.6 ? 18.0

1968 Elbe Express 730 B&V 171.0 24.5 7.9 20.0

1981 Frankfurt Express 3,430 HDW 271.0 32.3 11.5 23.0

1991 Hanover Express 4,407 Samsung 281.6 32.3 13.5 23.0

1995 APL China 4,832 HDW 262.0 40.0 12.0 24.6

1996 Regina Maersk 6,700 Odense 302.3 42.8 12.2 24.6

2001 Hamburg Express 7,506 Hyundai 304.0 42.8 14.5 25.0

2003 OOCL Shenzhen 8,063 Samsung 319.0 42.8 14.5 25.2

2005 MSC Pamela 9,200 Samsung 321.0 45.6 15.0 25.0

2006 Emma Maersk 14,500 Odense 393.0 56.4 15.5 24.5

Specifications for Very Large Post-Panamax Containerships

Malacca-max(Projected)

Suez-max(projected)

SovereignMaersk

Capacity (TEU) 18,000 12,000 8,400

Length (meters) 400 400 348

Width (meters) 60 50 43

Draft (meters) 21 17 14

Deadweight (tons) 243,600 157,900 105,000

Speed (knots) 25 25 25


75/145

The Largest Available Containership, 1980-2005 (in TEUs)

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

1980 1985 1990 1995 2000 2005

Average Cost per TEU by Containership Capacity and By Route, 1997

100

200

300

400

500

600

700

0 1000 2000 3000 4000 5000 6000 7000 8000

Capacity in TEU

CostsperTEU($US)

Europe - Far East (11,500 miles)

Trans Pacific (8,000 miles)

Trans Atlant ic (4,000 miles)


76/145

Economies and Diseconomies of Scale in Container Shipping

CostsperTEU

Capacity in TEU

MaritimeShipping

Transship

ment

InlandTran

sportation

Functional Integration of Supply Chains

Shipping Line

ShippingAgent

Stevedore

CustomAgent

FreightForwarder

Rail / Trucking

Depot

Trucking

Megacarrier

Economiesofscale

Land DistributionMaritimeDistribution

Level of functional integration


77/145

The Function of Transport Terminals

Location

Infrastructures

Accessibility

Local

Regional

Global

Transport Gateways

Gatew ay

Local

Regional

Global

Fore land H in te r land


78/145

The Hinterland of a Transport Terminal

ATerminal

Client

Main Hinterland

Competition Margin

B

Island

Continuous and Discontinuous Hinterlands

Core of the service areaMiddle section of the service areaOuter section of the service area

Maritime load centre

Inland terminal

Continuous hinterland Port A

Continuous hinterlandPort B

Discontinuous

hinterland Port A

Discontinuous

hinterland Port B

'Island' formation

Port A

Port B


79/145

Types of Hinterland

Macro-economic Physical Logistical

Concept Transport demand Transport supply Flows

Elements Logistical sites(production andconsumption) as partof GPNs

Transport links andterminals

Mode, Timing,punctuality andfrequency of services

Challenge International divisionof production andconsumption

Additional capacity(modal andintermodal)

Supply chainmanagement

A

B

C

Hinterland

D

Foreland

Competition margin

Main hinterland

Port Foreland and Hinterland


80/145

Terminals as Clusters and Growth Poles

A

B

Terminal

Terminal-dependentactivitiesAgglomeration

Inter-terminal linkTerminal-client link

Cluster Structure(Dis)agglomeration

forces

Internal competition

Cluster barriers

Heterogeneity

Cluster GovernanceIntermediaries

Trust

Leader firms

Collective action

regimes

Cluster PerformanceValue added

Ports and Urban Land Use

CityPort

Interface

Zone of conflict/cooperation

3

3

2

24

4

1

Environm

ent

Economy

Politic

s

Legislation

Technology

Environmental filter

Traditional port/city zone3

2

4

1 Port migration

Industrial migration

Land use competition

Water use competition


81/145

Port Sites

In a delta Margin of a delta Along a river Natural harbors

In an estuary Near an estuary In a bay Protected

Harbor Types

Coastal Natural Coastal Breakwater

Coastal Tide Gates River Natural

River Basins River Tide Gates

Canal or Lake Open Roadstead


82/145

Major Port Holdings, 2006

Pacific Asia Europe

APM Terminals

Dubai Ports World

Hutchison Port Holdings

Peninsular and Oriental Ports

Port of Singapore Authority

Container Terminals Controlled By Major Port Holdings, 2006

HoldingAustrali

a EuropeNorth

AmericaPacific

Asia

SouthAmerica

/Caribbe

an

SouthAsia /MiddleEast Total

APM

Terminals 7 13 7 3 5 39Dubai PortsWorld 1 2 4 2 5 15

HutchisonPort Holdings 10 22 7 1 42

Peninsular &Oriental Ports 4 7 5 6 1 5 29

Port ofSingaporeAuthority 11 20 1 32

Total 5 37 18 59 13 17 157


83/145

Basic Constraints of Port Sites

Maritime Space

Land Space

Infrastructures

Port

Land Access

Maritime Access

Interface

Capacity Range of Containerships by Draft

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8m

(26ft)

8.5m

(28ft)

9m

(30ft)

9.5m

(31ft)

10m

(33ft)

10.5m

(34ft)

11m

(36ft)

11.5m

(38ft)

12m

(39ft)

12.5m

(41ft)

13m

(43ft)

Containership draft

TEUs


84/145

Number of Large and Medium Ports by Channel Depth

33

5

4

4

10

6

16

47

71

76

76

36

16

11

8

0 10 20 30 40 50 60 70 80

76 and over

71 to 75

66 to 70

61 to 65

56 to 60

51 to 55

45 to 50

41 to 45

36 to 40

31 to 35

26 to 30

21 to 25

16 to 20

11 to 15

6 to 10

ChannelDepth(Feet)

Number of Ports

Typology of Port CitiesPort Traffic

CitySize

Small Medium Large

Small

Medium

Large

Coastal port town Regional port town Major port town

Regional city Regional port city Major port city

Coastal metropolis Port metropolis World port city

City Port


85/145

The Evolution of a Port

Setting Expansion Specialization

1 2

2

34

4

44

4

5

Downtown

Urban expansion

Terminal facilities

Port-related activities

RailHighwayWater depth

Reconversion

3

Evolution of the Port of Rotterdam

Den Haag

Rotterdam

VlaardingenSchiedam

DelftDelft

LeidenLeiden

ZoetermeerZoetermeer

SpijkenisseSpijkenisse

Oud-BeijerlandOud-Beijerland

WassenaarWassenaar

NaaldwijkNaaldwijk

PijnackerPijnacker

HellevoetsluisHellevoetsluis

HoogvlietHoogvliet

MaassluisMaassluis

BarendrechtBarendrecht

's-Gravenzande's-Gravenzande

VoorschotenVoorschoten

Krimpen aan den IJsselKrimpen aan den IJssel

Capelle aan den IJsselCapelle aan den IJssel

France

Germany

Belgium

Netherlandsnited Kingdom

Luxembourg

Rh

ine

0 3 6 9 121.5Miles

Development Phases

1400 - 1800

1800 - 1900

1920 - 1940

1946 - 1960

1960 - 1970

1970 - 2000


86/145

Stages in Port Development

Stage 1 Stage 2 Stage 3 Stage 4

Period Up to the mid 19thcentury

Mid 19th century to mid20th century

Late 20th cen tury La te 20 th century, early21st century

Development rationale Rise in trade Industrialization Globalization Logistics

Main port function Cargo handling

Storage

Trade

Cargo handling

Storage

Trade

Industrial manufacturing

Cargo handling

Storage

Trade


Container distribution

Cargo handling

Storage

Trade


Container distribution

Logistics control

Dominant cargo General cargo Bulk cargo Containers Containers and

information flows

Spatial scale Port city Port area Port region Port network

Role of port authority Nautical services Nautical services

Land and infrastructure

Nautical services


Port marketing

Nautical services


Port marketing

Network management

Evolution of Port Function


87/145

The Spatial Development of a Port SystemPhase 1: Scattered ports Phase 2: Penetration and hinterland capture

Phase 3: Interconnection & concentration Phase 4: Centralization

Phase 5: Decentralization and insertion of offshore hub Phase 6: Regionalization

Load center Interior centre Regional load centre network

Freight corridor

LAND

SEA

Deepsea liner services

Shortsea/feeder services

Forms of Port Privatization

Type Nature

Sale Port is transferred on a freehold basis but with the requirement that it beused only to provide port services.

ConcessionAgreement

Long-term lease of port land and facilities and the requirement that theconcessionaire undertakes specified capital investments to build, expand,or maintain the cargo-handling facilities, equipment, and infrastructure.

Capital lease Similar to a concession except that the private sector is not explicitlyrequired to invest in the facilities and equipment other than for normalmaintenance and replacement over the life of the agreement.

Management contract Private sector assumes responsibility for the allocation of port labor andequipment and provides services to the port users in the name of the port.The port retains control over all the resources.

Service contract The private sector responsibility for performing specific port activities. Thearrangement differs from a management contract in that the private sectorprovides the management, labor, and equipment required to accomplishthese activities.

Equipment lease Can be in various forms involving leaseback arrangements or suppliercredits. These agreements are used to amortize the costs to the port fornew equipment and to ensure a reliable supply of spare parts and, often,a guaranteed level of service/reliability from this equipment


88/145

Throughput of the Worlds Major Ports, 1997-2000 (in millions of metric tons)

0 50 100 150 200 250 300 350

Rotterdam

Singapore

Shanghai

Hong Kong

Nagoya

Antwerp

Pusan

Yokohama

Marseilles

Hamburg 1997

2000

Container Traffic of the World 20 Largest Ports, 2003

0 5.000.000 10.000.000 15.000.000 20.000.000 25.000.000

Hong Kong

Singapore

Shanghai

Shenzhen

Busan

Kaohsiung

Los Angeles

Rotterdam

Hamburg

Antwerp

DubaiPort Kalang

Long Beach

Quingdao

New York/New Jersey

Tanjung Pelepas

Tokyo

Bremen/Bremerhafen

Laem Chabang

Gioia Tauro


89/145

World Top 10 Container Ports, 1985-2000 (in Millions of TEUs)

0 2 4 6 8 10 12 14 16 18 20

Hong Kong

Singapore

Busan

Kaohsiung

Rotterdam

Shanghai

Los Angeles

Long Beach

Hamburg

Antwerp 1985

1990

1995

2000

The 50 Largest Container Ports, 1980-2003 (TEUs)

0

5.000.000

10.000.000

15.000.000

20.000.000

2003

2000

1995

1990

1985

1980


90/145

Cargo Throughput of the Port of Rotterdam, 2000

Inbound (249 million tons )

32%

52%

16%

Total dry bulks Total l iquid bulks Total general cargo

Outbound (73 million tons )

15%

25%

60%

Total dry bulks Total l iquid bulks Total general cargo

Modal Split of the Container Traffic, 1995-2000

0% 20% 40% 60% 80% 100%

Rotterdam

Antwerp

RoadRail

Inland navigation


91/145

Cargo Handled by the Top 5 US Container Ports, 1985-2005 (in TEUs)

0

5

10

15

20

25

30

35

40

45

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Millions

New York/New Jersey

Charleston

Oakland

Los Angeles

Long Beach

Total

Container Traffic at North American Ports, 1980-2004 (TEUs)

0

5

10

15

20

25

30

35

40

45

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Millions

United States

Canada


92/145

Value and Tonnage of Foreign Cargo Handled by Maritime Facade, United States, 1999 (in dollars and shorttons)

Tonnage

0

100

200

300

400

500

600

At lantic Pac if ic Gul f of Mexico

GreatLakes

Millions

Exports

Imports

Value

0

50

100

150

200

250

300

At lantic Pac if ic Gulf of

Mexico

Great

Lakes

Billions

Exports

Imports

The Advantages of Offshore Hub Terminals

Short SeaShipping

Pendulum Route A Pendulum Route B

Offshore Hub


93/145

Ports with the Highest Transshipment Function, 2004

98%

96%

95%

95%

91%

90%

90%

90%

87%

86%

86%

85%

81%

72%

70%

57%

57%

55%

50%

50%

1,1

3,3

3,1

2,1

19,4

0,7

0,5

1,4

1

1

0,7

2,5

1,9

1,6

1,4

0,9

0,6

5,3

3,2

2,6

30% 40% 50% 60% 70% 80% 90% 100%

Freeport

Tanjung Pelepas

Gioia Tauro

Salalah

Singapore

Port Said

Cagliari

Malta

Damietta

Kingston

Taranto

Algeciras

Panama

Colombo

Sharjah

Piraeus

Las Palmas

Kaohsiung

Dubai

Port Klang

0 5 10 15 20 25

Transshipment share

Volume (M TEU)

Transloading

Producer

Customer

LongD

istance

Trucki

ng

EmptyTr

avel

A

B

Transloading

Long Distance Rail

Short DistanceTrucking


94/145

The Panama Canal

!?

!?

!?

"

W

Panama City

ColonGatun Dam

Gaillard Cut

Miraflores Locks

Pedro Miguel Locks

Gatun Locks

Balboa

Cristobal

Colombia

Nicaragua

Ecuador

Panama

Costa Rica

Honduras

Venezuela

0 10 20 30 405

Kilometers

Atlantic Ocean

Pacific Ocean

Facility

!? Lock" Dam

W Continental DevidePort

Lake Gatun

Panama Canal

Panama Canal Railway

Shipping Lanes and Strategic Passages in Pacific Asia

China

India

Russia

Australia

Indonesia

Japan

Sunda

Torres

Lombok

Tsugaru

MalaccaMakassar

Pacifi

cOce

an

IndianOcean

Equidistant Conic Projection

South

Chi

naSea


95/145

0 200 400 600 800100Miles

The Strait of Malacca

IndonesiaIndonesia

Malaysia

Malay

sia

Thailand

Indian Ocean

Strait of Malacca

GulfofT

hailan

d

Indian

Ocean

PacificO

cean

Singapore

Strait of Sunda

South China Sea

Shipping Lanes, Strategic Passages and Oil Reserves in the Middle East

Sudan

Egypt

Turkey

Pakistan

Somalia

Afghanistan

Turkmenistan

Syria

Iran

Saudi Arabia

Iraq

Russia

India

China

Libya

Yemen

Oman

Kuwait

AE

QA

Suez

Hormuz

Bosporus

Bab el-Mandab

Oil Reserves (barrels, 2005)

Less than 20 billion

20 to 60 billion

60 to 125 billion

More than 125 billion

No significant reserves

Millions of barrels per day (2004)

Less than 0.5

0.5 to 2.5

2.5 to 5.0

More than 5.0


96/145

40 0 4020 Miles

The Dardanelles and Bosporus Passages

Black Sea

Mediterranean

Ocean

Marmara Denizi

Dard

anelles

Bosporus

Istanbul

Turkey

Turkey

Greece

The Northern East-West Freight Corridor

Russia

ChinaCanada

Un

ite

dState

s

Kazakhstan

Mongolia

Vostochny

Lianyungang

Archangel'sk

Brest

Druzhba

Zabaykalsk

Oulu

Lokot

Perm'

Astana

Harbin

Urumqi

Beijing

Irkutsk

Lanzhou

Vologda

Vainikkala

Ulaanbaatar

Novosibirsk

Yekaterinburg Presnogorkovka

Halifax

Moscow

St. Petersburg

Haparanda/Tornio

Boston

New York

Rotterdam

Transatlantic Segment

Rail Main Trunk (Broad Gauge)

Rail Main Trunk (Standard Gauge)

Rail Connector (Broad Gauge)

Rail Connector (Standard Gauge)

Russia

Sweden

FinlandNarvik

Haparanda/Tornio

OuluVainikkala St. Petersburg

Port

Gauge Change

Rail Terminal

Dr. Jean-Paul Rodrigue, Dept. ofEconomics &Geography, HofstraUniv ersity, November 2005

Scandinavian Segment

Azimuthal Equidistant Polar Projection

Halifax 8Days Narvik

1Day

Tornio0.6Day

0.3Day

Vainikkala1Day

1Day

Vostochny8.2Days

5,600 km 600km 970km 9,870 km

Freight Transport Sequence

Source: International Union ofRailways(2004) TheNorthernEastWest(N.E.W.) FreightCorridor, TransportutviklingAS.


97/145

Major Global Trade Routes, 1400-1800

Mexico Havana

PeruBrazil

West Africa

WesternEurope

Manila

Pacific

Ocean

Pacific

Ocean

Indian

Ocean

East Africa

India

China

Southeast Asia

Baltic

Hormuz

Aden

Aceh

North America Central Asia

Canton

Malacca

Caribbean

AtlanticOceanTrade RouteDominant Capital Flow







98/145

A. Economia, Comrcio e TransporteB. Modos de TransporteC. Logstica e TerminaisF. Rodovia, Ferrovia e IntermodalidadeG. MartimoI. AreoJ. Externalidades

L. Transporte Urbano




Flight Times by Piston and Jet Engines from Chicago

Piston Engine

Jet Engine

10 hours

15 hours

20 hours

24 hours30 hours

40ho

urs

10 hours15

hours

20hours

24hours


99/145

Main Commercial Passenger Aircraft, 1935-2008

Aircraft Year of FirstCommercial Service

Speed (km/hr) Maximum Range atFull Payload (km)

Seating Capacity

Douglas DC-3 1935 346 563 30

Douglas DC-7 1953 555 5,810 52

Boeing 707-100 1958 897 6,820 110

Boeing 727-100 1963 917 5,000 94

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 2006 930 14,800 555

Boeing 787-8 2008 1040 15,700 250

Range from New York of Different Modern Commercial Jet Planes

B-74

7-400

(11,4

00km)

B-777-100(7,400km)

A-320

(3,700

km)


100/145

World Air Travel and World Air Freight Carried, 1950-2004

0

500

1000

1500

2000

2500

3000

3500

4000

1950

1953

1956

1959

1962

1965

1968

1971

1974

1977

1980

1983

1986

1989

1992

1995

1998

2001

2004

Billionsofpassengers-km

0

20

40

60

80

100

120

140

Billionsoftons-km

Passengers

Freight

World Air Travel and Gross World Product, 1950-2001

0

5

10

15

20

2530

35

40

45

50

1950

1953

1956

1959

1962

1965

1968

1971

1974

1977

1980

1983

1986

1989

1992

1995

1998

2001

Trillionsof$US

0

500

1000

1500

2000

2500

3000

3500

Billionsofpassengers-km

Gross World Product

Passengers


101/145

Air Transportation Growth (Passengers and Freight) and Economic Growth, 1950-2001

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

1950 1960 1970 1980 1990 2000

Passengers-km

Tons-km

GWP

Stages in Air Network Development

Stage 1

Stage 2

Stage 3

Stage 4


102/145

Early Intercontinental Air Routes, 1930s

Sharj

ah

Dakar

TangierCasablanca

Agadir

Natal

RiodeJaneiroBuenosAires

Santiago

PuntaArenas

Alicante

MarseillesLisbon

AzoresNew York

Botwood

Eyeries London

Paris

Brind

isi

WadiHalfa

Khartoum

Juba

Nairobi

Mbeya

Harare

Johannesburg

Cape Town

CairoAlexandria

Athen

s

JaskGw

adar

Karac

hi

Jodh

pur

Calcu

ttaAll

ahabad

Rang

oon

Bangkok

Alor S

etar

BasraBa

ghdad

Kuwa

it

Meda

nSinga

pore

Palem

bang

Jaka

rta

Surab

aya

Kup

ang

Waing

apu

Darwin

Kathe

rine

MountIs

aBrisb

ane

Sydn

eyCharl

eville

Long

reach

Dayr

azZawr

Gaza

Amsterdam

Imperial Airways Afri can Route (c1933)

Imperial Airways/Quantas Australian Route (c1934)

Aeropostale (1930)

Pan American Transatlantic Route (1939)KLM Amsterdam Jakarta (1935)

Toulouse

Akyab

Average Airfare (roundtrip) between New York and London, 1946-2004

$6.500

$4.100

$2.600

$600

$0

$1.000

$2.000

$3.000

$4.000

$5.000

$6.000

$7.000

1940 1950 1960 1970 1980 1990 2000 2010


103/145

Worlds 10 Largest Passengers Airlines, 2000 (in 1,000 passengers)

0 20.000 40.000 60.000 80.000 100.000 120.000

Delta Air Lines

American AirlinesUnited Airlines

Northwest Airlines

US Airways

Lufthansa

Continental Airlines

All Nippon Airways

Air France

British Airways

Worlds 10 Largest Freight Airlines, 2000 (in 1,000 tons)

0 1.000 2.000 3.000 4.000 5.000

Federal Express

United Parcel Service

Korean Air Lines

Lufthansa

Japan Airlines

Singapore Airlines

Cathay Pacific

Northwest Airlines

British Airways

Air France


104/145

Airline Deregulation and Hub-and-Spoke Networks

Before Deregulation

After Deregulation

Hub

Hub

Air Hubs and Market Fragmentation

LondonChicago

Chicago

Milan

Zurich

London

Glasgow

Brussels

Stockholm

Frankfurt

DusseldorfBirmingham Manchester

1984 - Chicago Gateway - 1 US Flight Daily (Trans World: B747)

2001 - Chicago Hub - 22 US Flights Daily (American / United: B767, B777 )


105/145

Characteristics of Major Air Travel Markets

United States Europe Pacific Asia

Deregulation started in 1978 Deregulation started in 1997 Regulated markets withgovernment ownership

Low population density anddispersed urban centers

High population density andconcentrated urban centers

Dispersion of urban centers buthigh regional concentrations

Relatively open air spaces andairports

Congested air spaces andairports

Congested gateway airportsunderutilized regional airports

Rail minor competitor; Carcompete for short distances

High speed rail is a directcompetitor; Rail is a minorcompetitor; Car compete for

short distances

Except for Japan, lesscompetition from othertransportation modes

No loyalty to carriers (pricing

and frequent flyers)

Some lingering loyalty to

carriers

Strong imposed loyalty to

carriers

Price transparency Price becoming transparent Price not transparent

Limited income growth andlimited leisure

Limited income growth andmore leisure time

Growing income levels

Market Share of World Airline Traffic, 2003

Oneworld17%

Star24%

SkyTeam21%

Others38%

Oneworld

American Airlines, British Airways, AerLingus, Cathay Pacific, Finnair, Iberia,LanChile, Quantas

StarUnited Airlines, Lufthansa, Air Canada, AirNew Zealand, ANA, Asiana, Austrian, bmibritish midland, LOT Polish Airlines,Mexicana, SAS, Singapore, Spanair, ThaiAirways, Varig, US Airways, TAM, TAP

SkyTeam

Air France, Delta Airlines, Aeromexico,Alitalia, CSA Czech Airlines, Korean Air,Northwest, Continental, KLM


106/145

Commodities Shipped by Air Freight, 2003

Total: 144 billion freight ton-kms

17%

13%

11%

9%7%

43%

Capital equi pment

Intermediate materials

Perishables

Computers

ApparelOther

Income per passenger-km of major airline alliances, 1997

28,2%

27,6%

14,3%

10,6%

19,3% Oneworld (American, Canadian, JAL, US Airways,British Airways, Quantas, Iberia, Cathay Pacific)

Star (United, Lufthansa, Thai, SAS, Air Canada,

Varig, SAA, Singapore, ANA, ANZ, Ansett Australia)

Northwest, Continental, KLM, Alitalia

Delta, Swissair, Sabena, Austrian

Others


107/145

Operating Expenses of the Airline Industry, 2004

33,7

10,7

15,3

6,5

7,2

6,5

5,1

15Flight operations (fuel and pilots)

Maintenance (parts and labor)

Aircraft and traffic servicing

Promotion and sales

Passenger services

Administration

Equipment depreciation and amortisation

Transport related

Operating Revenues of the Airline Industry, 2004

65,1%

11,9%

4,2%

18,8%

PassengerFreight

Charter

Other


108/145

Seat Capacity of Selected Aircrafts, pre and post-1985

Main pr e-1985 Models

302

265

400

0 100 200 300 400

LockheedL1011

Douglas

DC10

Boeing 747

Main pos t-1985 Models

144

183

141

132

252

297

0 100 200 300 400

Boeing MD80

Boeing 757

Boeing 737

Airbus 320

Boeing 767

Airbus 310

Operating Fleet, Major US Carriers, 2001

0 100 200 300 400 500 600

A300

A310

A319

A320

A321

A330

B717

B727

B737

B747

B757

B767B777

DC-8

DC-9

DC-10

MD-11

MD-80

MD-90

F-100

L-1011

1,277


109/145

Major Air Traffic Flows, 1999 (millions of passengers)

0 50 100 150 200 250 300 350 400 450 500

North America

Europe

Asia

North America - Europe

Southwest Pacific

North America - Central America

Europe - Asia

Africa - South America

North America - Asia

Middle East

Africa - Europe

Africa

Central America

South America

Others

Worlds 10 Largest International Air Carriers, 2000 (in 1,000 passengers)

0 5.000 10.000 15.000 20.000 25.000 30.000 35.000

British Airways

Lufthansa

Air France

American Airl ines

KLM

Singapore Airlines

Japan Airlines

Swissair

SAS

Cathay Pacific


110/145

Worlds 10 Largest Domestic Airlines, 2000 (in 1,000 passengers)

0 20.000 40.000 60.000 80.000 100.000

Delta Air Lin es

United Airlines

American Airlines

US Airways

Northwest Airlines

All Nippo n Airways

Continental

TWA

Japan Airlines

Japan Air System

Major Air Traffic Flows Between Regions, 2000 (% of IATA Scheduled Passengers)

35.5 23.2

15.9

3.2

1.3 1.1

2.6

1.5

3.9

1.9

1.31.8

1.71.7

North America

Central America

South America Africa

Europe

Middle East Asia

Southwest Pacific

1.7


111/145

Major Air Freight Flows Between Regions, 2003 (in billions of ton-km)

22.41.3

9.1

0.1

0.1

0.1

9.911.6

2.7

4.6

24.224.2 North America

Latin America

Africa

Europe

Middle East Asia / Pacific

12.3

2.7

2.2

1.72.5

3.31.9 12.4

13.813.8

TerminalIsle

Terminal

Shuttles

1 2 3

Airport Components

Airfield


112/145

Airport Location Factors

Benefits Externalities Suitability

High

Low

City Center

High

Low

Commuting radius

High

Low

Location Ring

Site of the Hong Kong Chek Lap Kok Terminal

Logistics

andcarg

oarea

Passengerterm

inal

Northern

runway

Southern

runway Light Rail System

To Kowloonand Hong Kong

Trainst

ation

FutureTermin

al

Expansio

n


113/145

Airport Hubbing Level

None

High

PercentagePassengersConnecting

50%

25%

0%

Worlds Largest Passengers Airports, 2004 (in millions)

0 10 20 30 40 50 60 70 80 90

ATLANTA (ATL)

CHICAGO (ORD)

LONDON (LHR)

TOKYO (HND)

LOS ANGELES (LAX)

DALLAS/FT WORTH AIRPORT (DFW)

PARIS (CDG)

FRANKFURT/MAIN (FRA)

AMSTERDAM (AMS)

DENVER (DEN)

LAS VEGAS (LAS)

PHOENIX (PHX)

MADRID (MAD)

BANGKOK (BKK)

NEW YORK (JFK)


114/145

Passenger Traffic at the Worlds Largest Airports, 2004

Dallas Intl

Tokyo Haneda

Chicago O'Hare

Frankfurt IntlLondon Heathrow

Paris De Gaulle

Los Angeles Intl Atlanta Hartsfield

Passengers

Less than 30 M

30 M to 40 M

40 M to 60 M

More than 60 M

Worlds Largest Freight Airports, 2004 (in millions of metric tons)

0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0

MEMPHIS (MEM)

HONG KONG (HKG)

TOKYO (NRT)

ANCHORAGE (ANC)

SEOUL (ICN)

LOS ANGELES (LAX)

PARIS (CDG)

FRANKFURT/MAIN (FRA)

SINGAPORE (SIN)

MIAMI (MIA)

LOUISVILLE (SDF)

NEW YORK (JFK)

TAIPEI (TPE)

SHANGHAI (PVG)

CHICAGO (ORD)


115/145

Freight Traffic at the Worlds Largest Airports, 2004

Taipei ShekMiami Int 'L

Tokyo NaritaMemphis IntlIncheon Hlpt

Hong Kong Intl

Frankfurt Intl

Paris De Gaulle

Singapore Changi

Los Angeles Intl

Louisville Standiford

New York Ny/Newark Kennedy

Freight

Less than 1 M

1 to 1.5 M

1.5 to 2 M

More than 2 M

Tons of Landed Freight at Major US Airports, 2003

JFK

MIAFLL

TPA

MCOSATIAH MSYAUS

JAX

ELP SHV

SAN

DFW

PHX ATL CAE

LAXONT

HSVABQ

MEM CLT

RDULAS

BNATUL

SJC

RIC

SFOOAK

SDFSTL

IADCVG

BWI

MCI

RNO

INDDEN

PHL

DAYMDTPIT

EWR

SLC

FWAOMA

CLE

DSM

TOL

BDL

ORDRFD

DTW

BOSMHT

BUF

MKE

SYRBOI

FSD

MSP

PDX

SEABFI

GEG

Tons of Landed Freight (2003)

Less than 400,000

400,000 to 800,000

800,000 to 2 million

2 million to 4 million

More than 4 million


116/145












117/145

Transport Fatalities by Mode, United States, 1970-2003

0

10.000

20.000

30.000

40.000

50.000

60.000

1970 1980 1990 2001 2003

Waterborne

Railroad

Highway

Air Carriers

Probability of Pedestrian Fatality by Impact Speed

0

10

20

30

40

50

60

70

80

90

100

0 10 20 30 40 50 60 70 80

Impact speed (km/h)


118/145

Loss of Life per 10,000 Vehicles, OECD Countries, 1993-1995

0 0,5 1 1,5 2 2,5

Sweden

Norway

UK

Switzerland

Japan

Australia

Canada

Germany

Netherland

United States

The Paradox of Mobility and its Costs

MobilityMobility CostsCostsParadox

Growing demandGrowing demand

MotorizationMotorization

Energy (petroleum)Energy (petroleum)

Internal costs (users)Internal costs (users)

External costs (society)External costs (society)

Environmental impactsEnvironmental impacts


119/145

The Environmental System

Ecosphere

Atmosphere

Hydrosphere Li

thosphe

re

Biosphere

4. ECOSPHERE

4.1 AQUATIC ECOSPHERE

Alteration of ecosystems in unforeseeable ways.

Disappearance of vulnerable species and proli feration of tolerant ones.

Reduction of bacterial treatment of organic matter by nitrification.

Reduction of available nutrients to aquatic species.

Reproductive impediments.

4.2 LAND ECOSPHERE

Damages over the vegetation modifying:hydric cycles.the level of underground water resources.soil erosion.air purification capacity of the ecosphere.

food sources (agriculture).entertainment and tourism.

Reduction of the vital space.

Reduction of the genetic potential of species.

Reduction of the food supply and alteration of the food chain.

Consumption of resources.

4.3 HUMAN ECOSPHERE

Odors.

Noise.

Cardiovascular and respiratory problems.

Susceptibility to infection.

Drops in life expectancy.

Injuries, incapacity, hospitalization, death.

Damage to structures:loss of useful life. (amortization)loss of property values.corrosion of metal structures (bronze, steel, etc.).destruction of historical and cultural monuments.

1. ATMOSPHERELarge scale diffusion of pollutants.

High growth on a short termbasis of the concentration of pollutants because of

local conditions (e.g. smog).

Photochemical reactions caused by ultraviolet rays, notably over ozone, sulfur

dioxide and nitrogen dioxide.

Climatic changes (global warming).

Acid rain.

Synergetic effects when pollutants are combined (e.g. smog and greenhouse

gases).

2. HYDROSPHEREDiffusion of pollutants in a dissolved or colloidal state.

Acidification and loss of neutralizing potential of ground and underground water.

Drops of pH foll

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