Intermodal Transportation and Commodity Chains: New York and the Global, Regional and Local Nexus

1. Intermodal Transportation and Commodity Chains: New York and the Global, Regional and Local Nexus Jean-Paul RodrigueAssociate Professor, Dept. of Economics & Geography, Hofstra University, New York, USA Email: ecojpr@hofstra.edu Paper available at: http://people.hofstra.edu/faculty/Jean-paul_Rodrigue

2. New York as a Nexus: Commodity Chains and Transportation Production Global Gateways Regional Distribution Corridors Local Consumption Terminals Commodity Chains Transportation Integrated Transport Systems

3. The Global Nexus: Commodity Chains and Global Production Networks  Global Production Networks Container Ports as Gateways Integrated Transport Systems UPS Willow Springs Distribution Center, Chicago

4. Spaces, Networks and Flows in a Global Economy • Globalization; a clustered and spatially diffused process • In terms of production and consumption. • Distribution is reconciling spatially diverse demands for raw materials, parts and finished goods. • The backbone of globalization • Networks are established to support distribution. • Nodes are regulating the flows within networks. • As international trade increases, nodes have become strategic locations.

5. Commodity Chains and Added Value High Globalization R&D Sales / Service Marketing Branding Added value Distribution Design Concept Manufacturing Logistics Low Commodity chain

6. R&D Distribution Marketing / Retail Disconnection of Global Production and Distribution Core Base Manufacturing Base

7. GPN The Emergence of Global Production Networks • The Logistical Nexus • Fast growth of international trade with the full realization of comparative advantages. • Geographical and functional integration of production, distribution and consumption. • Commodity / Supply Chains. • Transportation integrated in the production / retailing process. • Global Production Networks (GPN). • Logistical poles where value added activities are performed. • Entirely new nodal locations. Flows Network Stage Parts and raw materials Bulk shipping High volumes Low frequency Unit shipping Manufacturing and assembly Commodity Chain Average volumes High frequency Transport Chain Distribution LTL shipping Low volumes High frequency Market Market

8. Traffic at the 50 Largest Container Ports, 2004

9. Integrated Transport Systems: From Fragmentation to Coordination

10. Major US Modal Gateways, 2004

11. The Three Main Gateways of North America

12. The Regional Nexus: Freight Distribution, Gateways and Corridors  Intermodalism and Transmodalism Corridors Translisft crane, NS Rutherford yard, PA

13. Intermodal and Transmodal Operations Intermodal Operations Transmodal Operations Intermodal Terminal DCs / CD ROAD Transloading Thruport RAIL Port container yard On-dock rail Ship-to-ship MARITIME

14. Intermodal Transport Chain Composition ‘Last mile’ Interchange Transfer Decomposition Local / Regional Distribution ‘First mile’ National / International Distribution Transport Terminal

15. Main North American Trade Corridors and Metropolitan Freight Centers

16. Level of Congestion of the Interstate Highway System

17. The Local Nexus: Terminals  Terminalization of Ports Port Regionalization APL “Australia” entering San Francisco Harbor

18. Port Terminal Operations Inland Modes and Terminals Distribution Centers Commodity Chain The Value Capture Process along Commodity Chains Maritime Services Port Holding Port Authority Port Services Inland Services Vertical Integration Horizontal Integration Maritime Shipping

19. Logistics: Soft Pressures on Hard Assets Customer Shipper Logistical Transport Demand Pull Valorization Infrastructural Locational

20. Port Holdings as Elements of the Maritime / Land Interface • Horizontal integration using fixed assets • More than 40% of global containerized traffic (2006). • Gain a foothold in a wide variety of markets (strategic positioning). • Financial assets. • Managerial expertise. • Gateway access. • Leverage. • Traffic capture. • Global perspective.

22. The Spatial Development of a Port System: Towards Regionalization Phase 2: Penetration and hinterland capture Phase 1: Scattered ports LAND SEA Phase 4: Centralization Phase 3: Interconnection & concentration Phase 6: Regionalization Phase 5: Decentralization and insertion of ‘offshore’ hub Freight corridor Load center Interior centre Deepsea liner services Regional load centre network Shortsea/feeder services

23. Cargo Handled by the Port of New York, 1991-2006 (metric tons)

24. Annual Traffic at Some NY / NJ Crossings, 2005 (millions of vehicles)

25. Truck Freight Corridors New York New Jersey TZB Connecticut 8.4 23.2 7.8 7.4 GWB Bronx 8.6 5.2 TBB TNB LT 5.7 WSB Manhattan LGA Long Island QMT HT Queens EWR BBT 4.2 1.9 GTB BYB 6.4 Brooklyn JFK VZB Staten Island 8.4 1.5 Major Crossing OCB 1,000 of Trucks per Day (2000) 4.8 2.0 About 70 million truck crossings per year

26. Rail Freight Corridors and Port Facilities New York New Jersey Bronx Manhattan NJ Distribution Cluster Long Island Queens Brooklyn Staten Island Port Terminal Intermodal Terminal

27. Intermodal Facilities and Navigation Channels of the Port of New York, 2007 Albers Equal-Area Conic Projection East River 40 45 Hudson River 1- Port Newark 2- Port Elizabeth 3- Global Marine 43 Newark Bay Channel 40 Red Hook 40 1 3 Upper Bay Channel South Brooklyn 2 50 Brooklyn 50 Daily Truck Movements (one way), 2001 42 Kill Van Kull Channel Howland Hook New Jersey 50 37 Arthur Kill Channel The Narrows Staten Island Navigation Channel Ambrose Channel 45 50 30 Control Depth (feet) Main Ship Channel N Intermodal Terminal 37 Arthur Kill Channel 37 Container Port (proposed) Raritan Bay Channel Major Highway Proposed rail tunnel

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