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Topic 3 – Transportation Modes. A Diversity of Modes Intermodal Transportation Passengers or Freight?. 5. Air Transport. Context Air routes are practically unlimited: North Atlantic. Inside North America and Europe. Over the North Pacific. Inside Asia. Multidimensional constraints:

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topic 3 transportation modes

Topic 3 – Transportation Modes

A Diversity of Modes

Intermodal Transportation

Passengers or Freight?

5 air transport
5. Air Transport
  • Context
    • Air routes are practically unlimited:
      • North Atlantic.
      • Inside North America and Europe.
      • Over the North Pacific.
      • Inside Asia.
    • Multidimensional constraints:
      • Site (a commercial plane needs about 3,300 meters of track for landing and take off).
      • Climate, fog and aerial currents.
    • Air activities are linked to the tertiary and quaternary sectors:
      • Finance and tourism that require movements of people.
    • Accommodating growing quantities of high value freight.
5 air transport3
5. Air Transport
  • Air Space
    • Segment of the atmosphere that is under the jurisdiction of a nation or under an international agreement for its use.
    • Two major components:
      • Land-based; takeoffs and landings.
      • Air-based; composed of air corridors.
    • Air corridors can superimpose themselves to altitudes up to 22,500 meters.
    • Limited to the use of predetermined corridors.
  • Air space use
    • Air space exclusively belongs to the country under it.
    • Access to the land and air-based components is dependent on agreements between nations and airline companies.
    • Air freedom rights.
air freedom rights
Air Freedom Rights

First

Second

Third

Home

Country B

Country A

Fourth

Fifth

Sixth

Seventh

Eight

Ninth

5 air transport5
5. Air Transport
  • Development of air transportation
    • Technical improvements:
      • Jet engine considerably reduced distances, namely because of greater speeds and improved ranges.
      • Almost every part of the world can be serviced in less than 24 hours.
    • Rising affluence:
      • Linked with income and economic output growth.
      • Disposable income available for leisure.
      • International tourism and air transportation are mutually interdependent.
    • Globalization:
      • Trade networks established by multinational corporations.
      • About 40% of the value of global manufactured exports.
      • About 50% of the value of American overseas - non-NAFTA - exports.
early intercontinental air routes 1930s
Early Intercontinental Air Routes, 1930s

Eyeries

London

Amsterdam

Paris

Brindisi

Botwood

Toulouse

Dayr az Zawr

Athens

Lisbon

Baghdad

Marseilles

New York

Basra

Azores

Alicante

Gwadar

Karachi

Jodhpur

Allhahabad

Jask

Tangier

Alexandria

Gaza

Calcutta

Casablanca

Cairo

Akyab

Agadir

Rangoon

Kuwait

Wadi Halfa

Bangkok

Sharjah

Khartoum

Dakar

Alur Setar

Singapore

Juba

Nairobi

Medan

Waingapu

Mbeya

Darwin

Natal

Palembang

Jakarta

Harare

Surabaya

Kupang

Katherine

Brisbane

Johannesburg

Mount Isa

Rio de Janeiro

Longreach

Santiago

Charleville

Cape Town

Imperial Airways African Route (c1933)

Sydney

Imperial Airways/Quantas Australian Route (c1934)

Buenos Aires

Aeropostale (1930)

KLM Amsterdam – Jakarta (1935)

Punta Arenas

Pan American Transatlantic Route (1939)

flight times by piston and jet engines from chicago
Flight Times by Piston and Jet Engines from Chicago

Piston Engine

10 hours

15 hours

20 hours

24 hours

40 hours

30 hours

Jet Engine

20 hours

15 hours

10 hours

24 hours

range from new york of different modern commercial jet planes
Range from New York of Different Modern Commercial Jet Planes

A-320 (3,700 km)

B-777-100 (7,400 km)

B-747-400 (11,400 km)

5 air transport12
5. Air Transport
  • Airline companies
    • Highly capital intensive segment of transport services.
    • Labor intensive, with limited room to lessen those labor requirements.
    • Around 900 airlines operating 11,600 commercial aircrafts.
    • Average number of 200 seats per plane.
    • Dominant share of the traffic is assumed by large passengers and freight carriers.
  • Strategic alliances
    • Joint booking systems, exchange of shares, and a reorganization of their services in order to minimize redundancy.
    • Increased market dominance but also increased competition between major markets.
5 air transport16
5. Air Transport
  • Flows
    • 1.4 billion passengers traveled by air transport (2000).
    • 2.8 billion departures and arrivals supported by airports.
    • Equivalent of 23% of the global population.
    • 30 million tons of freight were transported.
    • Air traffic is globally highly imbalanced:
      • Distribution of the population.
      • Unequal levels of development.
      • Concentration of traffic in a limited number of hubs.
    • 80% of the global population lives in the Northern Hemisphere:
      • Air traffic is much denser north of the equator.
    • North America and Europe accounted for 70.4% of all passenger movements in 2000.
major air traffic flows between regions 2000 of iata scheduled passengers
Major Air Traffic Flows Between Regions, 2000 (% of IATA Scheduled Passengers)

North America

3.9

Europe

23.2

1.7

35.5

1.7

1.9

15.9

1.8

1.3

1.5

Asia

Central America

Middle East

1.3

1.1

1.7

South America

Africa

Southwest Pacific

3.2

2.6

6 modal competition
6. Modal Competition
  • Integrated transportation systems
    • Requires maximum flexibility.
    • Modal competition exists at various degrees and takes several dimensions.
    • Modes can compete or complement each other:
      • Cost, speed, accessibility, frequency, safety, comfort, etc.
    • Intermodal transportation:
      • Opened many opportunities for complementarity.
      • Intense competition over many modes in the transport chain.
6 modal competition20
6. Modal Competition
  • Three dimensions of modal competition
    • Modal usage:
      • Comparative advantage of using a specific or a combination of modes.
      • Distance remains one of the basic determinant of modal usage.
      • The basic determinants of modal usage for passengers transportation.
      • For a similar distance, costs, speed and comfort can be significant factors.
    • Infrastructure usage:
      • Competition resulting from the presence of freight and passenger traffic on the same itineraries linking the same nodes.
    • Market area:
      • Competition being experienced between transport terminals for allocating new space or capturing new markets.
modal competition
Modal Competition

Market Area

Infrastructure / Route

Mode

B

B

B

B

B

1

2

5

4

3

6

A

A

A

A

A

b intermodal transportation
B – Intermodal Transportation
  • 1. Intermodalism
  • 2. Containerization
  • 3. Modal Choice and Intermodal Transport Costs
1 intermodalism
1. Intermodalism
  • Integrated transport systems
    • Use of at least two different modes in a trip from origin to destination through an intermodal transport chain.
    • Brought about in part by technology.
    • Techniques for transferring freight from one mode to another have facilitated intermodal transfers.
    • The container has been the major development:
      • Becoming a privileged mode of shipping for rail and maritime transportation.
intermodal transport chain
Intermodal Transport Chain

Interchange

Connection

Composition

Decomposition

Local / Regional Distribution

National / International Distribution

Transport Terminal

multimodal and intermodal transportation
Multimodal and Intermodal Transportation

Multimodal Point-to-Point Network

Intermodal Integrated Network

C

C

A

A

B

B

Transshipment

Rail

Road

D

D

Transshipment

F

F

E

E

2 containerization
2. Containerization
  • Container
    • Load unit that can be used by several transport modes.
    • Usable by maritime, railway and road modes.
    • Foremost expression on intermodal transportation.
    • Rectangular shape that can easily be handled.
    • Reference size is the Twenty-foot Equivalent Unit (TEU).
    • The most common container is the 40 footer (12 meters)
2 containerization29
2. Containerization
  • Advantages of containers
    • Standard transport product:
      • Can be manipulated anywhere in the world (ISO standard).
      • All segments of the industry have access to the standard.
      • Specialized ships, trucks and wagons.
    • Flexibility of usage:
      • Transport a wide variety of goods ranging.
      • Raw materials, manufactured goods, cars to frozen products.
      • Liquids (oil and chemical products).
      • Perishable food products (“reefers”; 50% of all refrigerated cargo).
    • Management:
      • Unique identification number and a size type code.
      • Transport management no not in terms of loads, but in terms of unit.
2 containerization30
2. Containerization
  • Costs:
    • Low transport costs,
  • Speed:
    • Transshipment operations are minimal and rapid.
    • Containerships are on average 35% (19 knots versus 14 knots) faster than regular freighter ships.
  • Warehousing:
    • Its own warehouse.
    • Simpler and less expensive packaging.
    • Stacking capacity on ships, trains (doublestacking) and on the ground.
  • Security:
    • Contents of the container is unknown to shippers.
    • Can only be opened at the origin, at customs and at the destination.
    • Spoilage and losses (theft), especially those of valued commodities, are therefore reduced.
five generations of containerships
Five Generations of Containerships

First Generation (1956-1970)

Length

Draft

TEU

135 m

500

Converted Cargo Vessel

< 9 m

200 m

Converted Tanker

800

Second Generation (1970-1980)

1,000 –

2,500

10 m

215 m

Cellular Containership

Third Generation (1980-1988)

250 m

3,000

11-12 m

Panamax Class

290 m

4,000

Fourth Generation (1988-2000)

Post Panamax

275 –

305 m

4,000 –

5,000

11-13 m

Fifth Generation (2000-?)

Post Panamax Plus

5,000 –

8,000

335 m

13-14 m

2 containerization38
2. Containerization
  • Disadvantages
    • Consumption of space.
    • Infrastructure costs:
      • Container handling infrastructures, such as giant cranes, warehousing facilities and inland road and rail access, represent important investments for port authorities and load centers.
    • Stacking.
    • Management logistics:
      • Requires management and tracking of every container.
    • Empty travel.
    • Illicit trade:
      • Common instrument used in the illicit trade of drug and weapons, as well as for illegal immigration.
      • Worries about the usage of containers for terrorism.
3 modal choice and intermodal transport costs
3. Modal Choice and Intermodal Transport Costs
  • Modal choice
    • Relationship between transport costs, distance and modal choice:
      • Road transport is usually used for short distances (from 500 to 750 km).
      • Railway transport for average distances.
      • Maritime transport for long distances (about 750 km).
    • Intermodalism:
      • The opportunity to combine modes.
      • Find a less costly alternative than an unimodal solution.
    • Efficiency of contemporary transport systems:
      • Capacity to route freight.
      • Capacity to transship it.
distance modal choice and transport costs
Distance, Modal Choice and Transport Costs

C1

C2

Road

C3

Transport costs per unit

Rail

Maritime

D1

D2

Distance

intermodal transportation cost function
Intermodal Transportation Cost Function

C(T)

Decomposition

C(dc)

Local / Regional Distribution Cost

National / International Distribution Cost

C(cn)

Connection

Costs

C(I)

Interchange

Connection

C(cn)

C(cp)

Composition

Origin

Transshipment

Destination