3rd European Conference and Exhibition on Inland
Terminals, Paris, October 22-23 2008
Transport Trends and Inland
Hubs
Jean-Paul Rodrigue
Associate Professor
Dept. of Global Studies & Geography
Hofstra University
New York, USA
Type and Function of Inland Terminals
Load center
Transmodal
terminal
Satellite
terminal
Type
Function
Satellite terminal
Close to a port facility. Accommodate additional
traffic and serve functions that have become too
expensive at the port. Container transloading.
Freight distribution cluster
/ load center
Access regional markets (production and
consumption). Intermodal, warehousing, and
logistics functions. Linked with logistics parks
and free trade zones.
Intermodal / Transmodal
facility
Link large systems of freight circulation either
through the same mode (e.g. rail-to-rail) or
through intermodalism (e.g. rail-to-truck).
A Favorable Environment for Inland Ports




Containerized Strong growth (China effect)
Containerization of supply chains.
Trade
Long distance hinterland transportation.
Trade
Imbalances
Imbalanced flows and shipping rates.
Load centers for empties on backhauls to ports.
Gateway
Congestion
Limitations for terminal expansion.
Higher port charges and lower dwell times.
Problematic local and terminal gate access.
Governance
Terminal operators.
Value capture.
Environmental constraints (Nimbyism).
Political support (policy).
Global Containerized Trade: Prepare to be
Disappointed

An Ongoing Intermodal Integration
Potential Divergence: Bubbles, Trade and
Containerization
Container yard, Port of Yantian, China
Intermodal Integration is Moving Inland
Container
port
Containerization of Maritime Transport Systems
Gateway
Pendulum
Services
Corridor
Intermodal
terminal
Containerization of Inland Transport Systems
Inland
Port
Offshore
hub
Intermodal and Transmodal Operations
World Container Traffic, 1980-2008. Reaching Peak
Growth?
Adoption
Acceleration
Peak Growth
Maturity
1000
900
800
2010(?) -
Million TEU
700
2002-2010(?)
600
500
Divergence
1992-2002
1966-1992
400
300
200
100
0
1980
1985
1990
1995
2000
2005
2010
2015
2020
Jan-08
Jan-06
B
Jan-04
Jan-02
1
Jan-00
Jan-98
A
Jan-96
100
Jan-94
40
Jan-92
Second Oil Shock
Jan-90
Jan-88
Jan-86
First Oil Shock
Jan-84
Jan-82
Jan-80
Jan-78
Jan-76
Jan-74
Jan-72
Jan-70
Gold Standard
Jan-68
20
Jan-66
Jan-64
Jan-62
Jan-60
Jan-58
Jan-56
140
Jan-54
Jan-52
Jan-50
Jan-48
Jan-46
The Global Economy is Shocked
West Texas Intermediate, Monthly Nominal Spot Oil Price (1946-2008)
120
Third Oil Shock
80
60
2
C
0
The Current Trend is Strongly Deflationary…
Baltic Dry Index, Monthly Value, 2004-2008
12,000
11,000
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Complete Breakdown
Coping with Imbalances

Transport Flows
Transport Rates
Inland Ports and Repositionning
NS Rutherford Inland Terminal, Pennsylvania
Containerized Cargo Flows along Major Trade
Routes, 1995-2006 (in millions of TEUs)
2006
13.9
4.6
2005
12.4
4.4
2004
12.4
4.2
2003
10.2
2002
8.8
2001
4.1
3.9
2000
5.6
3.3
1998
5.2
3.3
1995
4.0
0
3.5
5.5
8.9
5.2
4.9
6.1
5.9
4.5
5.8
10.8
7.3
3.9
7.2
12.5
2.3 3.9
2.1 3.8
Asia-USA
USA-Asia
Asia-Europe
Europe-Asia
USA-Europe
Europe-USA
1.7 3.2
1.7 2.9
4.2 1.5 2.6
4.0
2.7
3.6
3.6 2.2 2.9
3.5 2.7 1.31.7
2.8 2.3 1.21.4
10
20
30
40
2007-2
2006-4
2006-2
2005-4
2005-2
2004-4
2004-2
2003-4
2003-2
2002-4
2002-2
2001-4
2001-2
2000-4
2000-2
1999-4
1999-2
1998-4
1998-2
1997-4
1997-2
1996-4
1996-2
1995-4
1995-2
$500
1994-4
1994-2
1993-4
Maritime Freight Rates (Nominal USD per TEU), 19932007
$2,500
$2,000
$1,500
$1,000
Asia - US
US - Asia
Asia - Europe
Europe - Asia
$0
Geographical Levels of Empty Container
Repositioning
Hinterland
Regional
Repositioning
Inter-Regional
Repositioning
(coastal / fluvial)
Foreland
Port
Depot / Inland terminal
Freight Distribution Cluster
Cargo Rotation
May-08
Dec-07
Jul-07
Feb-07
Sep-06
Apr-06
Nov-05
Jun-05
Jan-05
Aug-04
Mar-04
Oct-03
May-03
Dec-02
Jul-02
Feb-02
Sep-01
Apr-01
Nov-00
Jun-00
Jan-00
Aug-99
Mar-99
Oct-98
May-98
Dec-97
Jul-97
Feb-97
350,000
Sep-96
400,000
Apr-96
Nov-95
Jun-95
Jan-95
Monthly Container Traffic Handled by the Port of Los
Angeles, 1995-2008 (TEU)
450,000
Out Empty
Out Loaded
In Loaded
300,000
250,000
200,000
150,000
100,000
50,000
0
Terminalization and Inland Ports

Economies of Scale: A Hard Pill to Swallow
Terminalization and Supply Chains
Extended Distribution Centers
Trimodal Container Terminal, Willebroek, Belgium
The Largest Available Containership, 1970-2007 (in
TEUs)
14,000
12,000
10,000
8,000
6,000
4,000
2,000
19
70
19
72
19
74
19
76
19
78
19
80
19
82
19
84
19
86
19
88
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
0
Hinterland Logistics: The Realm of the “Last Mile”
(or the “First Mile”)
Massification
Atomization
Frequency
Capacity
GLOBAL
Shipping Network
Gateway
HINTERLAND
REGIONAL
Corridor
Segment
Inland
Terminal
LOCAL
Distribution
Center
Customer
“Last Mile”
Terminalization in a Supply Chain Context
Suppliers
Gateway
Offshore Hub
Gateway
Inland
Terminal
Foreland (First Mile)
Bottleneck
Buffer
Distribution center (outbound / inbound)
Inland containerized goods flow
Inland non-containerized goods flow
Maritime container flow
Port regionalization and the creation
of a Regional Load Center Network
Extended Gate
Extended Distribution Center
Customers
Hinterland (Last Mile)
Supply Chain Terminalization: Import Flows to the
Hinterland
Suppliers
■ Bottleneck and bufferderived terminalization
• Port regionalization:
Gateway
• Regional load center network.
• Extended gate:
• Development of inland
terminals.
Offshore Hub
• Extended distribution center:
1
Gateway
2
Inland
Terminal
Customers
3
• The terminal as a
warehousing unit.
Container Transloading: A Strong Vector of
Terminalization
Cause
Outcome
Consolidation
Transferring the contents of smaller containers into larger
containers (e.g. three maritime 40 foot containers into two 53 foot
domestic containers). Cost savings (number of lifts). Time delays.
Weight compliance
Transferring the contents of heavy containers into loads meeting
national or regional road weight limits.
Palletizing
Placing loose (floor loaded) containerized cargo unto pallets.
Adapting to local load units (e.g. europallet).
Demurrage
Handing back containers to owner (maritime shipping or leasing
company) by transferring its contents into another load unit (e.g.
domestic container).
Equipment
availability
Making maritime containers available for exports and domestic
containers available for imports. Trade facilitation.
Supply chain
management
Terminal and transloading facility as a buffer. Delay decision to
route freight to better fulfill regional demands. Perform some
added value activities (packaging, labeling, final assembly, etc.)
Automated Transfer Management System for TruckRail Transfers
Supply Chains and Inland Terminals
■ JVC Belgium (EDC) + TCT Belgium (EG)
•
•
•
•
Four day rule.
Free time Rotterdam (5 days).
Free time TCT Belgium (21 days).
Full containers at TCT; part of stock to JVC Belgium.
Governance and Inland Terminals

Terminal Operators and Value Capture
Operations and Life Cycle
Containerization of Commodities
Uiwang Inland Container Depot, South Korea
The Value Capture Process along Commodity Chains
Port Authority
Horizontal Integration
Maritime Services
Port Services
Inland Services
Vertical Integration
Maritime
Shipping
Offshore
hub
Port
Inland
Port
Port Holding
Port Terminal
Operations
Inland Modes
and Terminals
Commodity Chain
Distribution
Centers
Inland Terminals: Operations and Added Value
Infrastructure
Equipment
Core
(Operations) Storage
Ancillary
(Added
Value)
Modal access (dock, siding, road), unloading
areas
Intermodal lifting equipment, storing equipment
Yard for empty and loaded containers
Management
Administration, maintenance, access (gates),
information systems
Trade facilitation
Free trade zone, logistical services
Distribution centers
Transloading, cross-docking, warehousing, light
manufacturing, temperature controlled facilities
(cold chain)
Storage depot
Container depot, bulk storage
Container services
Washing, preparation, repair, worthiness
certification
Inland Terminal Life Cycle
Traffic
Subsidies / Investments
Planning
Setting
Growth
Maturity
Decline
Profit
Concept
Stage 1
Operations
begin
Stage 2
Stage 3
Stage 4
Stage 5
Bulk and Containerized Commodity Chains
Bulk Commodity Chain
Supplier
Port Point-to-Point
Customer
Consolidation
center
Complementarity
Container
port
Pendulum
Services
Inland Terminal
Containerized Commodity Chain
26
Inland Terminals: Is the Trend our Friend?
Intermodal Integration (Positive)
Energy Prices (Somewhat Positive)
Collapse of Asset Inflation Bubbles (Very Negative)
Containerization of Commodities (Positive)
Container waiting to be loaded, Shenzhen, China