GEOG 80 – Transport Geography Professor: Dr. Jean-Paul Rodrigue Topic 3 – Transportation Modes A. A Diversity of Modes B. Intermodal Transportation C. 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: • 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 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 First Home Second Third Fourth Fifth Sixth Seventh Eight Ninth Country B Country A 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. Main Commercial Passenger Aircraft, 1935-2006 Aircraft Year of First Commercial Service Speed (km/hr) Maximum Range at Full Payload (km) Seating Capacity Douglas DC-3 1935 346 563 30 Douglas DC-7 1953 555 5,810 52 Boeing 707-100 1958 897 6,820 110 Boeing 727-100 1963 917 5,000 94 Boeing 747-100 1970 907 9,045 385 McDonnell Douglas DC-10 1971 908 7,415 260 Airbus A300 1974 847 3,420 269 Boeing 767-200 1982 954 5,855 216 Boeing 747-400 1989 939 13,444 416 Boeing 777-200ER 1995 905 13,420 305 Airbus A340-500 2003 886 15,800 313 Airbus A380 2006 930 14,800 555 Early Intercontinental Air Routes, 1930s Eyeries London Amsterdam Paris Toulouse Lisbon Marseilles Botwood New York Azores Alexandria Cairo Gaza Wadi Halfa Khartoum Juba Nairobi Mbeya Harare Johannesburg Cape Town Imperial Airways African Route (c1933) Imperial Airways/Quantas Australian Route (c1934) Aeropostale (1930) KLM Amsterdam – Jakarta (1935) Pan American Transatlantic Route (1939) Flight Times by Piston and Jet Engines from Chicago Piston Engine 10 hours 15 hours 20 hours 24 hours 30 hours Jet Engine 10 hours Average Airfare (roundtrip) between New York and London, 1946-2004 $7,000 $6,000 $6,500 $5,000 $4,100 $4,000 $3,000 $2,600 $2,000 $1,000 $0 1940 $600 1950 1960 1970 1980 1990 2000 2010 Range from New York of Different Modern Commercial Jet Planes World Air Travel and World Air Freight Carried, 19502002 Passengers Freight 2500 100 80 2000 60 1500 1000 500 0 40 20 0 Billions of tons-km 3000 120 19 50 19 53 19 56 19 59 19 62 19 65 19 68 19 71 19 74 19 77 19 80 19 83 19 86 19 89 19 92 19 95 19 98 20 01 Billions of passengers-km 3500 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. World’s 10 Largest Passengers Airlines, 2000 (in 1,000 passengers) British Airways Air France All Nippon Airways Continental Airlines Lufthansa US Airways Northwest Airlines United Airlines American Airlines Delta Air Lines 0 20,000 40,000 60,000 80,000 100,000 120,000 World’s 10 Largest Freight Airlines, 2000 (in 1,000 tons) Air France British Airways Northwest Airlines Cathay Pacific Singapore Airlines Japan Airlines Lufthansa Korean Air Lines United Parcel Service Federal Express 0 1,000 2,000 3,000 4,000 5,000 Market Share of World Airline Traffic, 2003 Oneworld American Airlines, British Airways, Aer Lingus, Cathay Pacific, Finnair, Iberia, LanChile, Quantas SkyTeam 21% Star United Airlines, Lufthansa, Air Canada, Air New Zealand, ANA, Asiana, Austrian, bmi british midland, LOT Polish Airlines, Mexicana, SAS, Singapore, Spanair, Thai Airways, Varig, US Airways, TAM Others 38% Star 24% SkyTeam Air France, Delta Airlines, Aeromexico, Alitalia, CSA Czech Airlines, Korean Air, Northwest, Continental, KLM Oneworld 17% 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) North America 1.7 3.9 Europe 23.2 35.5 1.8 15.9 1.3 1.5 Middle East Central America 1.3 South America 1.7 1.7 1.9 Asia 1.1 Africa Southwest Pacific 3.2 2.6 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. Four Travel Options between New York and Boston, 2004 Mode Price (one way) Time LimoLiner (luxury bus) $69 4 hours Acela (Amtrak train) $99 3 hours Greyhound bus $30 4 hours Air Shuttle $128 1 hour (plus check in) 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 Infrastructure / Route Mode B 1 B 2 B B B A A 5 4 3 Market Area 6 A A A Passenger Transport by Mode, Japan, 1950-1999 1400 Billions of Passenger Kilometers 1200 1000 Airline Railway Bus Auto 800 600 400 200 0 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 1999 B – Intermodal Transportation ■ 1. Intermodalism ■ 2. Containerization ■ 3. Modal Choice and Intermodal Transport Costs 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 Interchange Composition Connection Local / Regional Distribution National / International Distribution Transport Terminal Decomposition 40-Foot Containers Doublestacked on a Rail Car Multimodal and Intermodal Transportation Multimodal Point-to-Point Network Intermodal Integrated Network C A C A B B Transshipment Rail Road D D Transshipment F E F E 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. 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. 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 First Generation (1956-1970) Length Draft 135 m Converted Cargo Vessel Converted Tanker TEU 500 <9m 800 200 m Second Generation (1970-1980) Cellular Containership 215 m 10 m 1,000 – 2,500 Third Generation (1980-1988) 3,000 250 m 11-12 m Panamax Class 4,000 290 m Fourth Generation (1988-2000) Post Panamax 275 – 305 m 4,000 – 11-13 m 5,000 335 m 13-14 m Fifth Generation (2000-?) Post Panamax Plus 5,000 – 8,000 Stacked 40-Foot Containers 20-Foot Container on Truck 20-Foot Tank Containers 40’ Reefer “Kegger” 4th Generation Containership 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 ■ 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. Transport costs per unit Distance, Modal Choice and Transport Costs C1 Road C2 C3 Rail D1 Maritime D2 Distance Intermodal Transportation Cost Function C(T) Local / Regional Distribution Cost Decomposition C(dc) Connection C(cn) Costs National / International Distribution Cost C(I) Interchange C(cn) Connection Composition C(cp) Origin Transshipment Destination