Optimal location of logistics
centers
Freight Modeling in Finland
Tapani Särkkä/MATREX
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Model City 2011, 22nd emme users’ conference, portland oregon
Contents
•Objectives and scope
•Freight model
•Evaluation method
•Results
•Remarks
When Infrastructure Counts.
15 September
2011
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Model City 2011, 22nd emme users’ conference, portland oregon
15 September
2011
Objectives and Scope
• Find out optimal locations for logistics centers and their transport
economic significance in Finland
-
ca. 70 locations studied
• Unitized freight (e.g. Containers) of Finnish export and import with
Russian through freight
• Europe, Russia and continents, focus on Finland
• Multimodal, multi commodity freight model
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Model City 2011, 22nd emme users’ conference, portland oregon
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15 September
2011
Finland
• 5.4 million people
• 340 000 sq km
-
10% lakes
• Sparsely populated
• Compares to Oregon
Wikipedia
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Model City 2011, 22nd emme users’ conference, portland oregon
15 September
2011
Freight model
• STAN: similar to Emme
- Mode dependent networks
- System optimum
• FRISBEE database in STAN, based on previous models, since
1997
- 13 commodities and 10 modes
- Six components in costs (on links and transfers)
- Operation
- Level of Service
- Risk of damage
- Reliability
- Value of goods
- Transport Time
- Frequency
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Model City 2011, 22nd emme users’ conference, portland oregon
The rail network in Frisbee
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15 September
2011
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Model City 2011, 22nd emme users’ conference, portland oregon
15 September
2011
Freight transport chain and logistics center
A logistics center
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Model City 2011, 22nd emme users’ conference, portland oregon
15 September
2011
Evaluation method
• Matrix convolutions to find out the best intermediate
zones (logistics centers) for freight flow(s), similar to
park-and-ride
• Stepwise development of the network
- Logistics centers can be independent, compete or
complement each other
- All the potential centers are evaluated and ranked, the ”best”
one is added to the base network. The procedure is repeated
till all centers are in the base network
• Macros
• The procedure can be run backwards to be sure of the
ranking
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Model City 2011, 22nd emme users’ conference, portland oregon
15 September
2011
Unitized export in Finland
All exports by regions, ca. 10 mill tons/a,
0.71 mill units
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Exports by region without paper
products, ca 2.5 mill tons/a 0.17 mill units
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15 September
2011
Model City 2011, 22nd emme users’ conference, portland oregon
Ranking in step
0,00
2,00
4,00
6,00
8,00
10,00
12,00
Seinäjoki
Isokyrö
Varkaus
Mikkeli
Joensuu
Pori
Pieksämäki
Lappeenranta
Imatra
Vaasa
Salo
Kuopio
Kouvola
Raasepori
Hanko
Savonlinna
Porvoo
Saarijärvi
Lohja
Forssa
Loimaa
Jämsä
Karkkila
Hyvinkää
Kerava
Nurmijärvi
Riihimäki
Mäntsälä
Benefits by logistics center after one step of the evaluation procedure
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Model City 2011, 22nd emme users’ conference, portland oregon
15 September
2011
Ten best locations in Finland, “final” ranking
30,0
12,0
25,0
10,0
20,0
8,0
15,0
6,0
10,0
4,0
5,0
2,0
0,0
0,0
Benefits by center; Export, all products Benefits by center;
(savings ca. 74 mil EUR/a)
Export, without paper products
(savings ca. 35 mil EUR/a)
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dd Month Year
Locations on the map
Optimal locations of logistics
centers, Finnish Export and import
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Optimal locations of logistics centers,
Finnish export and import w/o paper products
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Model City 2011, 22nd emme users’ conference, portland oregon
15 September
2011
Results
• The “optimal” locations are consistent with the
expectations and among best throughout the various
scenarios
• The best 20% of the potential centers yield 80…90% of
the potential benefits
• The Finnish route (the Finnish ports) for the Russian
freight is very competitive against the Baltic ports
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Model City 2011, 22nd emme users’ conference, portland oregon
15 September
2011
Concluding remarks
• Preconditions for a good logistics center:
-
Demand in the vicinity
Work force
Working infrastructure
Available land
Geographical location
• Political will is not enough to establish a good
logistics center
• Contact: Tapani Särkkä
- Email: tapani.sarkka@sito.fi
When Infrastructure Counts.