the terminalization of supply chains: north american and european perspectives

The Atlantic Rim:The Atlantic Rim:Comparative Issues in North American and European LogisticsComparative Issues in North American and European Logistics

Annual Conference of the Association of American Geographers, Boston, Annual Conference of the Association of American Geographers, Boston, Massachusetts, April 15-19 2008Massachusetts, April 15-19 2008

The Terminalization of Supply The Terminalization of Supply Chains:Chains:North American and European North American and European PerspectivesPerspectivesTheo NOTTEBOOMTheo NOTTEBOOMInstitute of Transport and Maritime Management Antwerp (ITMMA), Institute of Transport and Maritime Management Antwerp (ITMMA), University of Antwerp, Antwerp, BelgiumUniversity of Antwerp, Antwerp, Belgium

Jean-Paul RODRIGUEJean-Paul RODRIGUEDepartment of Economics & GeographyDepartment of Economics & GeographyHofstra University, Hempstead, New York 11549, USAHofstra University, Hempstead, New York 11549, USA

The Terminalization of Supply ChainsThe Terminalization of Supply Chains

A. North America: The Corridor Effect

B. Europe: The Gateway Effect

C. Comparative Logistics: Terminalization and the Move Inland

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A. North AmericaA. North America Gateways and Corridors The Rail Transportation Question

33

Imports and Exports at Selected US Gateways, 2005

Main North American Trade Corridors and Metropolitan Freight Centers

§̈¦105

§̈¦110§̈¦710

§̈¦405

§̈¦10

§̈¦5

§̈¦605§̈¦105

§̈¦10

§̈¦710

§̈¦710

§̈¦10

§̈¦10 §̈¦710

§̈¦10

£¤101

UV42

UV1

UV19

UV72

UV91

UV22

UV47

UV1

UV22

Alameda CorridorGround Level

Trench (30 feet)

0 2 4 6 81Miles

Port of Los AngelesPort of Long Beach

CBD

UP & BNSF Railyards

Mid-CorridorTrench (10 miles)

Alameda Corridor

UP & BNSF Railyards

Port of Los Angeles

Port of Long Beach

Thruport

Port Cluster

Alameda Corridor

The Extended Gateway of the Ports of Los Angeles / Long Beach

Marine Term

inal

On-dock rail yards

Near-dock rail yards

Off-dock rail yards

Transload facility

Warehouse

Transload facility

Warehouse

Non-local destination

Non-local destination

Non-local destination

Off-dock rail yards

Non-local destination

Non-local destination

Local destination

16%

13%

22%

13%

34%

2%Truck

Rail

Intra-terminal

88

North American Rail SystemNorth American Rail System

Major Rail Corridors Improved since 2000Major Rail Corridors Improved since 2000

Average Speed of Class I Railroads, 1945-Average Speed of Class I Railroads, 1945-20042004

15

20

25

30

35

40

1945 1955 1965 1975 1985 1995 2005

Kilo

met

ers

per h

our

Average Freight Train Length, United StatesAverage Freight Train Length, United States

020406080

100120140160180

Auto Bulk GeneralMerchandise

Intermodal

Eastern Railroads (CSX, NS)Western Railroads (BNSF, UP)

Container Dwell Times at BNSF Rail Container Dwell Times at BNSF Rail TerminalsTerminals

Departure Return Free Dwell Time (Days)

Additional Charge (per day)

Loaded Loaded (same shipper)

6 $25

Loaded Loaded (different shipper)

3 $25

Empty Loaded 3 $25

Loaded Empty 1 $25/$50 (after 10 days)

Empty Empty 0 $25/$50 (after 10 days)

1212

BNSF’s Three Tier Terminal System, 2007BNSF’s Three Tier Terminal System, 2007Facility Group

Facility Free Dwell Time (days)

Charge (per day)

1 Kansas City, KSLos Angeles, CAMemphis, TN

1 $150

2 Alliance, TXAtlanta, GA (Fairburn)Chicago (Cicero), ILHouston, TXOakland Intl. Gateway, CA

San Bernardino, CASeattle, WA (SIG)St. Louis, MOSt. Paul, MNStockton, CA

2 $150

3 Albuquerque, NMAmarillo, TXBillings, MTBirmingham, ALChicago (Corwith), ILChicago (Willow Springs), ILDenver, CODilworth, MNEl Paso, TX

Fresno, CAHarvard, ARLogistics Park Chicago, ILNew Orleans, LAOmaha, NEPhoenix, AZPortland, ORSouth Seattle, WASpokane, WA

2 $100

1313

Automated Transfer Management System for Truck-Rail Transfers

B. EuropeB. Europe

1515

Average Dwell Times at Major European Average Dwell Times at Major European Container Terminals (in days)Container Terminals (in days)

Characteristics Bremen Hamburg Rotterdam Antwerp La Spezia Gioia Tauro

Import dwell vessel – truck

6,4 6,4 6,4 6,4 7,4 7,4

Export dwell truck – vessel

4,6 4,6 4,6 4,6 5,6 5,6

Import dwell vessel – train 6,5 6,5 6,5 6,5 7,5 7,5

Export dwell train – vessel 4,7 4,7 4,7 4,7 5,7 5,7

Import dwell vessel – barge

4,1 4,1 4,1 4,1 5,1 5,1

Export dwell barge – vessel

4,3 4,3 4,3 4,3 5,3 5,3

Transshipment dwell - - - - - 5,3

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TCT VenloExtended gate (rail-based)

for ECT/HPH

Container transferiumExtended gate (satellite)

Initiated by POR

Case studies Europe – Rhine-Scheldt Delta

Container transferium

TCT Venlo – extended gate of ECT/HPH

Examples of cases JVC Belgium + TCT Belgium: extended DC for JVC, extended gate for

ECT• Four day rule• Free time Rotterdam = 5 days• Free time TCT Belgium = 21 days• Full containers at TCT = part of stock to JVC Belgium

Source: Flanders Institute for Logistics

Logistics clusters in the province of Limburg (region of Flanders, Belgium)

Source: BCI, 2007

Node typology in the province of Limburg (region of Flanders, Belgium)

Source: BCI, 2007

C. Comparative Logistics: Inland Terminals C. Comparative Logistics: Inland Terminals and the Move Inlandand the Move Inland

What are the main differences and similarities?• Differences:

• Modes (Truck/Rail vs. Truck/Barge).• Ownership (Private vs. Public/Private).

• Similarities:• Function (import based).

Is there a distinct North American (or European) terminalization?• Due to externalities (congestion, environment) Europe

shows a more advanced terminalization.• Dwell time pressures indicate a more constraining

terminalization in North America.

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