6 Modal shift, competition. Land and rail

Introduction

  • Overview of transport modes covered in SCM500 Transport modes I (Ch. 5 in Rodrigues)

Why Trade?

  • Discusses the significance of trade in the economy and the necessity of transport as a facilitator.

Need for Transport

  • Transport is crucial for the movement of goods and services, contributing to economic growth.

Agreeing on Transport Conditions

  • Importance of clear agreements on transport conditions for successful trade operations.

Economic Impact of Transport

  • Examines how transport transformations affect economic conditions.

Choosing Modes

  • Guides on how to choose the appropriate transport mode based on multiple factors.

Types of Transport Modes

  • Fundamental categories of transport modes:

    • Land Transport:

      • Road

      • Rail

      • Pipelines

    • Water Transport:

      • Shipping (including maritime)

    • Air Transport

Technical Characteristics

  • Speed: Different modes have varying speed capabilities.

  • Capacity: Transport modes differ in the amount of goods/passengers they can hold.

  • Motive Technology: Diverse technologies drive each transport mode.

Operational Characteristics

  • These characteristics include speed limits, safety conditions, and operating hours that affect transport service availability.

Detailed Transport Modes

  • Air Transport:

    • Scheduled Car, Intercity, Ferry, RoRo, Charter, Taxi, HSR (High-Speed Rail), Van/Bus, Cruise, Motorcycle, Subway, Commuter, Bicycle, LRT, Monorail, and Walking.

  • Land Transport:

    • Inland, Truck, Rail: Modal descriptions including options like Freight, Less than Truckload (LTL), Truckload (TL), etc.

    • Maritime: Coastal, River/Sea, Oil Carload, Liquid bulk options like Tank barge, Flatbed and more.

Intermodal Transport

  • Definition: Involves multiple transport types (road, rail, ocean, air) using a single shipment.

    • Evolved to require one bill of lading covering multiple transport modes.

    • Also referred to as multimodal or co-modality in Europe.

Intermodalism

  • Complex transport involving transfers at specifically designed terminals.

  • Challenge of seamless integration between modes.

Intermodal Transport Chain Composition

  • First Mile: Assembly and consolidation of freight at terminals.

  • Connection: Freight consolidation occurs over national or international systems.

  • Interchange: Essential function at terminals to ensure continuity.

  • Decomposition: Fragmentation of freight for local distribution, referred to as the last mile.

Conditions and Outcomes of Intermodal Transport

Key Conditions

  • Load units (volume/weight) and economic factors from intermodal processes.

  • Transport distances typically above 500 km favor intermodal approaches.

  • Needs for load consolidation for efficiency.

Expected Outcomes

  • Lower transport costs via economies of scale and effective mode utilization.

  • Shift in modal preferences reflecting enhanced operational efficiencies and continuous flows.

Modal Competition & Complementarity

  • Modal Competition:

    • Direct competition among transport modes over cost, time, and reliability.

  • Modal Complementarity:

    • Co-utilization of different transport modes that leverage their strengths.

  • Modal Shift:

    • Change in demand dynamics favoring one mode over another while both might still grow.

Economic Considerations

Cost Structures

  • Cost is crucial in deciding transport modes, with associated direct/indirect cost generators.

  • The relationship of freight demand and market type plays a role in modal choice.

Factors Influencing Costs

  • Fixed and capital costs versus operational costs across various transport types:

    • Road, Rail, Maritime, Air including necessary infrastructures.

Summary of Transport Modes' Characteristics

Comparative Analysis

  • Road: High flexibility, relatively low cost, ideal for short distances.

  • Rail/Pipelines: Efficient for bulk transport over longer distances but less flexible than road.

  • Maritime/Air: Low operational infrastructure costs, high capacity, suitable for international freight.

  • Intermodal: Combines strengths of various modes for efficiency.

Future Considerations

  • Growing emphasis on integrating systems and understanding modal economics for a cohesive transport strategy.