Canada’s Asia-Pacific Gateway and Corridor Research
Consortium, Gateway and Corridor Workshop,
Regina, Saskatchewan, February 21 2007
Gateways, Corridors and
Global Freight Distribution:
Transpacific Issues
Jean-Paul Rodrigue
Associate Professor, Dept. of Economics &
Geography, Hofstra University, New York,
USA
Email: ecojpr@hofstra.edu
Paper available at:
http://people.hofstra.edu/faculty/Jean-paul_Rodrigue
Globalization and the Transpacific
■ Globalization; a clustered and
spatially diffused process
• In terms of production and
consumption.
• Distribution is reconciling
spatially diverse demands for
raw materials, parts and finished
goods.
■ The backbone of globalization
• Networks are established to
support distribution.
• Gateways are regulating the
flows within networks.
• As international trade increases,
gateways have become strategic
locations.
Gateways and Hubs as Central and
Intermediate Locations
Intermodal
Gateway
■ Gateways & hubs
• Nodes offering an accessibility to a
large system of circulation.
• Obligatory (semi) points of
passage.
• Convergence of transport
corridors.
• Centrality and intermediacy.
■ Gateways
Transmodal
• Favorable physical location.
• Intermodal and stable in time.
■ Hubs
Hub
• Transmodal and subject to change.
• Commercial decisions.
• Delays vs. frequency of services.
Corridors and Regional Development
B
A
Order
High
Low
Specialization and
High Low interdependency
C
Gateway
Flows
Main North American Trade Corridors and
Metropolitan Freight Centers
Edmonton
Calgary
Vancouver
Winnipeg
Seattle
Halifax
Portland
Montreal
Minneapolis
Toronto
Boston
Detroit
Chicago
Salt Lake City
Pittsburgh
Philadelphia
Baltimore
San Francisco
Denver
Cincinnati
Kansas City
St. Louis
Norfolk
Charlotte
Los Angeles
San Diego
New York
Cleveland
Oklahoma Ci ty
Memphis
Phoenix
Atl anta
Charleston
Dallas
Hub
Gateway
Houston
New Orleans
Miami
Interdependencies and Imbalances
■ Macro-economic and physical imbalances
• Globalization has made the economies of the Pacific Rim more
integrated.
• These interdependencies however come with acute imbalances.
• The core of these imbalances is at start macro-economic:
• Comparative advantages.
• Foreign direct investments.
• Debt and asset inflation.
• Macro-economic imbalances have an outcome in the physical
world of freight flows:
•
•
•
•
International trade.
Container flows.
Transportation rates.
Structure of long distance transport services.
The “Perpetual Motion Machine”: The
Dynamics of the World’s Most Significant
Trade Relationship
USD
$ for goods
Unemployment
Investment
Goods
Interest Rates
Borrowing
Bonds (IOUs)
Reserves
China
$ for bonds
USD
Asset Inflation
Debt
United States
Share of Global Manufacturing Output,
1993-2003
India
Taiwan
2003
1993
ASEAN
South Korea
China
0
1
2
3
4
5
6
7
World’s 10 Largest Exporters and
Importers, 2005
Belgium
Imports
Exports
Canada
Italy
United Kingdom
Netherlands
France
Japan
China
United States
Germany
0
200
400
600
800
1,000
Billions of $US
1,200
1,400
1,600
1,800
Containerized Cargo Flows along Major
Trade Routes, 1995-2005 (in millions of
TEUs)
2005
13.9
2004
4.3
12.4
2003
4.2
10.2
2002
4.1
8.8
2001
3.9
2000
5.6
3.3
1998
5.2
3.3
1995
4.0
0
3.5
5
3.5
5.2
4.9
6.1
4.2
5.9
4.5
3.6
5.6
8.9
7.3
3.9
7.2
9.9
4.0
1.8 3.3
1.7 3.2
Asia-USA
USA-Asia
Asia-Europe
Europe-Asia
USA-Europe
Europe-USA
1.7 2.9
1.5 2.6
2.7
3.6
2.2 2.9
2.7 1.31.7
2.8 2.3 1.21.4
10
15
20
25
30
35
40
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 (USD per TEU),
1993-2006
$2,500
$2,000
$1,500
$1,000
Asia - US
US- Asia
Asia - Europe
Europe - Asia
$0
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
Largest American Importers of Asian
Goods Through Maritime Container
Transport, 2004 (in TEUs)
CVS (Eckerds)
Honda
Hamilton Beach
Toyota
Matsushita
Samsung
Payless ShoeSource
Ashley Furniture
Costco
Lowe's
Ikea
Sears (K-Mart)
Target
Home Depot
Wal-Mart
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Container Traffic at Major Transpacific
Container Ports: Mirror Images?
Pacific Asia
Anchorage
Tokaido
Yellow Sea
Rim
Dalian
YokohamaTokyo
Busan
Tianjin
OsakaKobe
Nagoya
2004 Traffic
Less than 2 million TEU
Quingdao
2 million to 4 million TEU
Prince Rupert
Shanghai
4 million to 7 million TEU
Ningbo
Sunan Delta
7 million to 10 million TEU
Taiwan / Fujian
Keelung
Pearl River Delta
Shenzhen
Yantian
Guangzhou
More than 10 million TEU
Kaohsiung
Puget Sound
Hong Kong
Vancouver
Fraser
Seattle
Tacoma
Portland
Manila
San Francisco Bay
Oakland
Laem Chabang
San Pedro Bay
Singapore
Los Angeles
Long Beach
Port Kalang Singapore
Tanjung Pelepas
Ensenada
Tanjung Priok
North American West Coast
Gateways and Hinterland Effect
Pacific Asia
North American West Coast
SEZ
Corridor
Inefficient Inland Freight Distribution
Efficient Inland Freight Distribution
25
1.4
20
1.2
1.0
15
0.8
10
0.6
5
0.4
0.2
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Loaded (inbound)
Loaded (outbound)
Loaded Ratio (Outbound / Inbound)
Empty (inbound)
Empty (outbound)
Empties Ratio (Outbound / Inbound)
Millions
Containers Handled by the Port of Hong
Kong, 1995-2005 (in TEU)
5.0
8
4.5
7
4.0
6
3.5
3.0
5
2.5
4
2.0
3
1.5
2
1.0
0.5
1
0.0
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Loaded (inbound)
Loaded (outbound)
Loaded Ratio (Outbound / Inbound)
Empty (inbound)
Empty (outbound)
Empties Ratio (Outbound / Inbound)
Millions
Containers Handled by the Port of Los
Angeles, 1995-2005 (in TEU)
Ratio
5.0
2.0
4.5
1.8
4.0
1.6
3.5
1.4
3.0
1.2
2.5
1.0
2.0
0.8
1.5
0.6
1.0
0.4
0.5
0.2
0.0
0.0
1997
1998
1999
2000
2001
Loaded (inbound)
Loaded (outbound)
Loaded Ratio (Outbound / Inbound)
2002
2003
2004
2005
Empty (inbound)
Empty (outbound)
Empties Ratio (Outbound / Inbound)
Millions
Containers Handled by the Port of
Vancouver, 1997-2005 (in TEU)
Types and Functions of Rail Freight
Corridors
Type
Function
Examples
Short distance (within a Modal shift, improved Switch carrying,
gateway / hub)
capacity and
Alameda, “Agile
throughput.
Port”, Panama
Hinterland access
(between a gateway
and its vicinity)
Expand market area, Rail shuttles, PIDN,
reduce distribution
Virginia Inland port
costs & congestion
Landbridge (between
gateways)
Long distance
container flows,
continuity of global
commodity chains
Circum-hemispheric
Integrated global
(between gateways with transport chains
a maritime segment)
North American
landbridge
Northern EastWest Corridor
Container Port Traffic and Ownership of Major Rail Lines, 2005
Fraser
Burlington Northern Sante Fe (BNSF)
Kansas City Southern (KCS)
Canadian National (CN)
Norfolk Southern (NS)
Canadian Pacific (CP)
Union Pacific (UP)
CSX Transportation (CSXT)
Other
Ferromex (FNM)
Vancouver
Tacoma
Seattle
Halifax
Portland
Montreal
Boston
New York/New Jersey
Wilmington (DE) Philadelphia
Baltimore
Oakland
Hampton Roads
Long Beach
Los Angeles
Wilmington (NC)
Charleston
Savannah
Jacksonville
Houston
Gulfport
New Orleans
Port Traffic in TEU (2005)
Less than 300,000
300,000 to 500,000
500,000 to 1,000,000
Port Everglades Palm Beach
1,000,000 to 3,000,000
Miami
More than 3,000,000
Dr. Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University
Potential Location of Major Transmodal Rail Facilities:
Maritime Gateways and Inland Hubs
Calgary
Vancouver
Seattle
Regina
Winnipeg
Tacoma
Montreal
Minneapolis
Chicago
Oakland
Kansas City
New York/New Jersey
St Louis
Hampton Roads
Memphis
Long Beach
Los Angeles
Dallas / Fort Worth
Houston
Charleston
Savannah
Maritime Rail Gateway
Transmodal Rail Hub
Dr. Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University
Western North America: Value of US Rail
Imports by Port of Entry, 2002
Western North America: Value of US Rail Imports by Port of Entry, 2002
Less than 50 million
50 to 300 million
300 to 800 million
800 million to 1.6 billion
Blaine
More than 1.6 billion
Calgary
Sumas
Regina
FrontierLaurier Eastport
Sweetgrass
Winnipeg
Portal
Pembina
Noyes
International Falls-Ranier
Sault Ste. Marie
Minneapolis
Chicago
Kansas City
Dr. Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University
St Louis
Western Canada: Taking Advantage of
Intermediacy
■ Prince Rupert: A new gateway?
• Congested West Coast Ports; in search of alternatives.
• CN Prince Rupert strategy:
• Focus on non-stop intermodal services to Chicago.
• Time component as a major comparative advantage (107 hours).
• The decision to use the gateway will be made by maritime
shipping lines.
• The quality and efficiency of inland distribution will be a factor
behind the number and frequency of port calls.
• Many logistical opportunities in between (transmodal).
• What about the “warm chain”?
■ North Pacific Rim Trade Corridor
• A potential alternative?
Conclusion: Pacific Asia and 21st Century
North American Freight Distribution
■ Transpacific Trade
• Emergence of global production networks.
• Substantial rebalancing of the global economy.
■ Gateways, corridors and integrated transport systems
• Imbalanced freight flows; the gateways’ dilemma:
• Disequilibrium in the division of labor, trade, production and consumption.
• Pressures to manage disequilibrium (e.g. empties).
• Intermodal and transmodal operations:
• Reconcile the scales (from the “Agile Port” to the Landbridge).
• Logistical friction:
• A new modal balance (time, cost and efficiency).
• Competitive advantages derived from whole transport chains.
• The matter is mainly in the hands of private firms:
• Decide the allocation of assets and capital.
Circum Hemispheric Dreams
Vostochny
Oakland
Harbin
Long Beach
Un ite
d
S tate
s
Salt Lake City
Tacoma
Vancouver
Lianyungang
Beijing
Port
Gauge Change
El Paso
Zabaykalsk
Rail Terminal
Canada
China
Ulaanbaatar
Arctic Bridge
Irkutsk
Northern Sea Route
Lanzhou
Mongolia
Northwest Passage
Houston
Kansas CIty
Russia
Minneapolis
Chicago
Urumqi
Novosibirsk
Lokot
Savannah
New York
Astana
Montreal
New York
Yekat erinburg
Perm'
Halifax
Archangel'sk
Haparanda/Tornio
Oulu
Vologda
Vainikkala
St. Petersburg
Moscow
Maritime Segment
Rail Main Trunk (Broad Gauge)
Rail Main Trunk (Standard Gauge)
Azimuthal Equidistant Polar Projection
Rotterdam
Brest
Presnogorkovka
Kazakhstan
Druzhba