Michel Savy savy@enpc.fr professor, ENPC and University of Paris 12 director, OPSTE ( cnt.fr ) - PowerPoint PPT Presentation

Aristotle University of ThessalonikiLectures on freight : contemporary economicsand policy issuesStructure and strategyof freight industry

Michel Savy

savy@enpc.fr

professor, ENPC and University of Paris 12

director, OPSTE ( www.cnt.fr )

1. Road transport

• Transport production is still strongly structured according to modes, intermodal transport is limited
• Dominant position of road in inland freight transport in Europe
• quantitative domination
• sets reference price and quality of service for other solutions
• The organisation of road haulage market is an example and gives proper keys to understand all other modes
• industrial economics
• transport, organisation, logistics

Aristotle University of Thessaloniki May 14th 2007

70,0

60,0

50,0

Rail

40,0

Road

IWW

30,0

Pipeline

20,0

10,0

0,0

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

Aristotle University of Thessaloniki May 14th 2007

100%

90%

80%

70%

60%

Inland waterways

50%

Rail

Road

40%

30%

20%

10%

0%

CY

MT

EL

IE

ES

PT

DK

LU

IT

UK

FR

BE

FI

CZ

DE

NL

AT

SE

HU

PL

SK

SI

LT

EE

LV

EU

25

Aristotle University of Thessaloniki May 14th 2007

• Technical specialisations
• local
• interurban
• vehicle renting with driver
• removal
• Economies of scale ?
• limits in vehicles size
• network effects, organisation ?
• Interaction between firms within haulage industry

Aristotle University of Thessaloniki May 14th 2007

NB : firms and not groups

Aristotle University of Thessaloniki May 14th 2007

Aristotle University of Thessaloniki May 14th 2007

Aristotle University of Thessaloniki May 14th 2007

Aristotle University of Thessaloniki May 14th 2007

Aristotle University of Thessaloniki May 14th 2007

Aristotle University of Thessaloniki May 14th 2007

2. Inland freight organisation

• Inside road haulage, a division of labour
• no dualism, "bipolarisation"
• hierarchical interaction (integration of organisation, uneven profitability)
• no gap between transport and freight organisation
• Freight organisation
• parcel service (!)
• chartering
• international transport organisation (freight-forwarding)

Aristotle University of Thessaloniki May 14th 2007

Aristotle University of Thessaloniki May 14th 2007

• Statistic division only partly corresponds to actual market divisions
• transhipment
• type of product, size and packaging of consignment
• served territory
• quality of service, additional services
• make or buy ?

Aristotle University of Thessaloniki May 14th 2007

• n = 0, from 0 to 3 kg, courrier and small parcels
• n = 1, parcel service up to 30 kg
• n = 2, traditional parcel service (several parcels for one consignment) and heavy parcels, up to pallets (average 300 kg)
• n = 3, bulking, 1 to 3 tons consignments
• n = 4, full truck load, according to type of product and of packaging

Aristotle University of Thessaloniki May 14th 2007

Transport and warehousing

Aristotle University of Thessaloniki May 14th 2007

• Concentration
• multi specialist groups setting up
• multinational
• following changes in production and distribution (flexibility)
• tracking and tracing, IT
• transport, logistics, supply chain
• Bipolarisation

Aristotle University of Thessaloniki May 14th 2007

3. Biggest transport groups

Aristotle University of Thessaloniki May 14th 2007

Aristotle University of Thessaloniki May 14th 2007

• DHL
• Securicor (UK)
• Trans-O-Flex (Germany))
• Ducros (France)
• Danzas (Switzerland)
• Nedloyd (Netherlands)
• ASG (Sweden)
• Air Express International (air freight-forwarding US)
• Burlington (inland parcel service US)
• Exel (which bought Tibbett and Britten)
• BPD (Belgium)
• TNT Netlog (Germany)
• ITG (Germany)
• GP Paketlogistik (Switzerland)
• Guipuzcoana (Spain)
• MIT (Italy)
• Sevisco (Poland)
• Quickstep (Austria, Switzerland, Tcshek Republic)
• Van Gend & Loos (Benelux)
• Sernadis, Arcatime (France)

Technical and commercial integration (DHL)

Staff : 500 000 Turnover : 55 G€

Aristotle University of Thessaloniki May 14th 2007

Aristotle University of Thessaloniki May 14th 2007

Aristotle University of Thessaloniki May 14th 2007

Aristotle University of Thessaloniki May 14th 2007

Aristotle University of Thessaloniki May 14th 2007

Aristotle University of Thessaloniki May 14th 2007

Italiques : intégrateurs

Aristotle University of Thessaloniki May 14th 2007

Aristotle University of Thessaloniki May 14th 2007

• parcel service
• express parcel
• transfer of funds
• logistics
• archiving
• invoicing
• equipment renting
• organisation of fairs and exhibitions
• staff recruitment
• surveillance
• real estate management
• maintenance
• systems of communication
• services informatiques
• software development
• e-commerce
• etc.

Aristotle University of Thessaloniki May 14th 2007

CA 2003

Aristotle University of Thessaloniki May 14th 2007

• Situation is not stable
• Heterogeneous situation in Europe, some firms and countries in dominating position
• Geographic strategy, European market control, enlargement
• Multimodal alliances, joint-ventures, fusions ?
• Continental models (Europe – USA – Japan)
• integrated groups
• marketing coordination of means providing companies
• Worldwide alliances, global players ?

Aristotle University of Thessaloniki May 14th 2007