2008 International Logistics Forum, Incheon (Korea), October 8, 2008 Port Regionalization: Towards a New Phase in Pacific Asian Port Development Jean-Paul Rodrigue Associate Professor Dept. of Global Studies & Geography Hofstra University New York, USA The Challenge of the Hinterland The Maritime / Land Interface The Velocity of Freight Gateways and the Logistical Hinterland Container yard, Port of Yantian, China Elements of the Maritime / Land Interface Maritime Freight Distribution Foreland (Shipping Network) Inland Freight Distribution Port System Gateways Road Rail Corridors and Hubs Hinterland (FDC) Coastal / Fluvial Functional and Geographical Diffusion of Containerization: Globalization and Regionalization Global containerized commodity chains (Optimal: 75% ?) Volume Globalization Niche markets Regionalization Regional Load Center Network Foreland Traffic Port Hinterland Traffic Diffusion (Functional and Geographical) 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” Logistics and the Velocity of Freight Transshipment Speed Speed barrier Future improvements Pull Logistics Logistical threshold Containerization Push Logistics Shipment Speed Port Regionalization Regionalization and Hinterland Setting Hinterland Logistics Trimodal Container Terminal, Willebroek, Belgium The Spatial Development of a Port System Phase 2: Penetration and hinterland capture Phase 1: Scattered ports LAND SEA Phase 3: Interconnection & concentration Phase 4: Centralization Phase 5: Decentralization and insertion of ‘offshore’ hub Phase 6: Regionalization Load center Interior centre Freight corridor Deepsea liner services Shortsea/feeder services Hinterland-based (Regional load centre network) Foreland-based Regionalization and Hinterland Setting North America Western Europe East and Southeast Asia Coastal concentration Landbridge connections Inland concentration Coastal gateways Coastal concentration Low hinterland access Gateways and the Logistical Hinterland Pacific-Asia (e.g. Pearl River Delta) North American West Coast (e.g. LA/Long Beach) Landbridge Container port / terminal Logistics zone / site Strongly developed corridor Poorly developed corridor Multi-port gateway region North Europe (e.g. Rhine Scheldt Delta) Continuous and Discontinuous Hinterlands Port A Continuous hinterland Port A Discontinuous hinterland Port A 'Island' formation Discontinuous hinterland Port B Port B Continuous hinterland Port B Main hinterland Competition margin Maritime load centre Inland terminal Types of Hinterland Macro-economic Physical Logistical Concept Transport demand Transport supply Flows Elements Logistical sites Transport links and (production and terminals consumption) as part of commodity chains Mode, Timing, punctuality and frequency of services Attributes Interest rates, exchange rates, prices, savings, production, debt Capacity, corridors, terminals, Physical assets (fixed and mobile) Added value, tons-km, TEU, Value of time, ICT Challenge International division of production and consumption Additional capacity (modal and intermodal) Supply chain management Gateways and the New Port Hinterlands: The “Regionalized Port” Interest rates, exchange rates, prices, savings, production, debt Consumption Production Terminal / DC Link (mode) Trade Balanced flows Imbalanced flows Hinterland Challenges in Pacific Asia Long Distance Trade Networks Supply Chain Reliability Port Regionalization Clusters “Emma Maersk”, 12,500 TEU, Rotterdam, Netherlands Eq ua to r Circum Hemispheric Rings of Circulation North American Landbridge Eurasian Landbridge Arctic Routes Circum-Equatorial Maritime Highway The Resurgence of All Water Services to the American East Coast Zone of Contestability NY Savannah E qu Suez a tor Eastbound Route Westbound Route Landbridge Panama Route Panama Challenges and Opportunities of the New Panama Canal (New Panamax – 12,000 TEU) Singapore Colombo Hong Kong Shanghai Kobe Jeddah Pusan E qu Suez a tor Gioia Tauro Algeciras Eastbound Route Westbound Route LA/LB Kingston Panama Service Time Reliability: All Water Services vs. Transpacific / Landbridge Port congestion Offshore transshipment Transloading Unit train assembly Rail congestion Transmodal operations Road congestion Transpacific / Landbridge 18 days Port congestion Offshore transshipment Panama / Suez Delays All Water Services NY: 22 days Savannah: 21 days Port Regionalization Clusters in Pacific Asia Hinterland-based regionalization Foreland-based regionalization Two Major Transpacific Pendulum Routes Serviced by OOCL, 2006 (The Wal-Mart Express) Vancouver Seattle Qingdao Shanghai Laem Chabang Shekou Ningbo Hong Kong Kaohsiung Northwest Express (NWX) Pusan Kobe Tokyo Oakland Los Angeles 40 Days Nagoya Singapore 49 Days South China Express (SCX) Note: Paths are approximate and transit time includes port time Source: OOCL Web Site Port Regionalization in Pacific Asia Freight Distribution Moving Inland Two Major Forms of Regionalization: Foreland and Hinterland-Based Container waiting to be loaded, Shenzhen, China