Intermodal Transportation and Terminal Operations Transportation Logistics Spring 2008 Intermodal Transportation • Transportation that includes more than one mode (air, rail, road, water) • Typically refers to containerized goods (as opposed to bulk or general cargo) • Capital intensive but requires less labor than traditional freight handling • The majority of the costs incurred with intermodal transportation are incurred when handled in terminals (between modes) Bulk Cargo Wet bulk cargo refers to fluids like oil Dry bulk cargo refers to non-fluids such as grain, coal, etc.. Many goods that used to be shipped as bulk cargo (grain, bananas, coffee beans) are now shipped in containers General Cargo • Whatever needs moving • Flatbed trucks for odd-shapes • General cargo vessels Containers • Containers have become the box of choice • There are approximately 18 million containers worldwide There are many varieties of containers…. • • • • • • • • Standard containers (20’, 40’, 45’ height 8’6’’) Hard top containers (removable steel roof) Open top containers Flat racks Domestic containers (53’) Refrigerated containers (require clear space) Tank containers High cube container (9’6’’ tall) • One 20’ container is a Twenty foot Equivalent Unit (TEU) Intermodal Issues • Single-carrier transfers versus interline transfers (between two carriers) • Shipper – the person who wants the freight moved • Intermodal containers existed prior to the intermodal containers we see in use today (a box is an intermodal container), but were typically smaller than a truck or rail car load Intermodal issues • Transportation agencies are still structured around modes • Transportation companies are still structured around modes, in fact they had to be during regulation • There has been much growth in intermodal transportation companies since deregulation (3PLs, IMCs, and to some extent Steamship lines) • Transportation infrastructure is build by modal agencies that historically did not interact The view from an intermodal container • http://www.forbes.com/home/logistics/2006 /04/13/containers-worldwide-movementtracking-cx_rm_0417contain.html • We will discuss containerization and deregulation further in future class sessions Terminal • • • • • A station where freight is received or discharged Situated at the end Placed at a boundary A point or part that forms the end From terminus (end) • The name reflects their historic role • In the intermodal world we usually refer to intermodal yards rather than terminals Terminals or interchanges occur in all modes • • • • • • • • • Airports Bus terminals Marine terminal or port Ferry terminal Train station Rail yard or terminal Cross-dock facility Distribution center Intermodal yard • They have common characteristics, I’ll focus today on marine ports and intermodal yards US Port Throughput (TEU) 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 20 05 20 04 20 03 20 02 20 01 20 00 19 99 19 98 19 97 19 96 19 95 19 94 19 93 19 92 19 91 19 90 19 89 19 88 19 87 19 86 19 85 19 84 19 83 19 82 19 81 19 80 0 Long Beach Los Angeles Oakland Seattle Tacoma Portland(OR) Charleston New York/New Jersey Houston Vancouver (BC) Port Operations Quay Crane Vessel Local Storage Chassis Discharging container flow Loading container flow Wheeled versus Grounded Port productivity metrics • • • • TEUs per hectare TEUs per annum Dwell time Crane productivity – Crane cycle time – Lifts per hour – Moves per hour Port Characteristics • Hong Kong and Singapore, the traditional Asian hubs are trans-shipment facilities • New Asian ports in China are export facilities • US Ports have historically served as storage facilities, storage has been cheap (sometimes free) • Land has historically been inexpensive in the US but labor has been costly US Port Throughput (TEU) 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 20 05 20 04 20 03 20 02 20 01 20 00 19 99 19 98 19 97 19 96 19 95 19 94 19 93 19 92 19 91 19 90 19 89 19 88 19 87 19 86 19 85 19 84 19 83 19 82 19 81 19 80 0 Long Beach Los Angeles Oakland Seattle Tacoma Portland(OR) Charleston New York/New Jersey Houston Vancouver (BC) Increasing productivity of West Coast Terminals • In recent years West Coast Ports have experienced congestion and marine vessels have at times been unable to access the port • There have been many responses to this including pressure to increase the productivity of West Coast Terminals While throughput has increased dramatically density has not P roductivity ofw estcoastports during the years 1985-2005 5 4 Throughput G ross Term inalA rea 3 D ensity B erth utilisation 2 B erth length 1 Years 05 20 03 20 01 20 99 19 97 19 95 19 93 19 .0 91 19 89 19 87 19 85 0 19 P roductivity for differentm easures 6 West Coast Terminal Area has increased Term inalgrow th over the period 1985-2005 35000.0 25000.0 Term inalarea 20000.0 B erth Length 15000.0 10000.0 5000.0 Years 05 20 04 20 03 20 02 20 01 20 00 20 98 19 97 19 96 19 94 19 89 19 88 19 85 0.0 19 T erm inalarea(acres) 30000.0 Primarily at California ports T erm inalarea variation at the w est coast ports 6,000 Long B each 4,000 Los A ngeles O akland 3,000 S eattle T acom a 2,000 V ancouver 1,000 years 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 0 1985 T erm inalarea(acres) 5,000 Similarly with berth length B erth length variation atthe w estcoastports 120,000 Long B each Los A ngeles 80,000 O akland S eattle Tacom a 60,000 V ancouver 40,000 20,000 Years 05 20 03 20 01 20 99 19 97 19 95 19 93 19 91 19 89 19 87 19 85 0 19 B erth length(feet) 100,000 Throughput density (TEUs/acre) variation across west coast ports Throughput density(TEUs/acre) Throughput density variation across west coast ports during 1985-2005 7000 6000 5000 Long Beach Los Angeles Oakland Seattle Tacoma Vancouver (BC) 4000 3000 2000 1000 0 85 19 86 19 87 19 88 19 89 19 90 19 0 1. 9 19 2 99 , 1 93 19 94 19 95 19 Year 96 19 97 19 98 19 99 19 00 20 01 20 02 20 03 20 04 20 05 20 Berth length (TEUs/ft) utilisation at west coast ports 350 300 250 Long Beach Los Angeles Oakland Seattle Tacoma Vancouver (BC) 200 150 100 50 Year 20 05 20 04 20 03 20 02 20 01 20 00 19 99 19 98 19 97 19 96 19 95 19 94 19 93 1, 99 2 19 91 .0 19 90 19 89 19 88 19 87 19 86 0 19 85 Berth length utilisation(TEUs/ft) Berth length utilisation across west coast ports during 1985-2005 West Coast Throughput T hroughput of top w est coasts betw een 1985 - 2005 8,000,000 6,000,000 Long B each 5,000,000 Los A ngeles O akland 4,000,000 S eattle T acom a 3,000,000 V ancouver (B C ) 2,000,000 1,000,000 Y ear 04 20 02 20 00 20 98 19 96 19 2 94 19 1, 99 90 19 88 19 86 19 84 19 82 19 80 0 19 T hroughput (T E U s) 7,000,000 Market share among the west coast ports Market share of the top west coast ports between 1985-2005 0.45 0.4 Long Beach Los Angeles Oakland Seattle Tacoma Vancouver (BC) 0.3 0.25 0.2 0.15 0.1 0.05 Year 20 04 20 02 20 00 19 98 19 96 19 94 19 92 19 90 19 88 19 86 19 84 19 82 0 19 80 Market share 0.35 Operational Improvements • Technology implementations – RFID, GPS, OCR, automation • Land area utilization (stacking) – Rail mounted gantry cranes • Extended gate hours • Truck appointment systems • Crane Utilization – Double cycling • Increase Intermodal Percentage – containers typically have shorter dwell times Container movements • http://www.youtube.com/watch?v=DMuuN pBnKA4 • http://www.youtube.com/watch?v=PeMHY X4LxEc • http://www.youtube.com/watch?v=81ZcRs A29NU Productivity Improvements • As is true across the board in transportation, infrastructure is expensive to build, or impossible to build • Solutions must be found to manage demand and utilize infrastructure better • There is evidence our ports are “unproductive” and that we can expect better utilization of the infrastructure 16 14 gt h e ay le n t/c ra n t/q u pu ro u Th ro u gh Th gh ro u Th gh pu pu tD ro u en gh pu si ty t 12 10 8 6 4 2 0 Th P roductivity values Global Comparison Los A ngeles Long B each K w aiS ing(H K ) S ingapore R otterdam A ntw erp H am burg Tacom a K lang(M alaysia) B arbour's C ut Term inal (H ouston) Comparison of characteristics of different ports across the world(2004) Characteristics of selected leading ports across the world(2004) 18 16 Los Angeles Long Beach Kwai Sing(HK) Singapore Rotterdam Antwerp Hamburg Tacoma Klang(Malaysia) Barbour's Cut 14 12 10 8 6 4 2 0 Berths [10] Terminals No, No. Gantry cranes [10000] (acres) [100] Berth Length(ft) Terminal Area Throughput variation at container ports across the world Throughput at container ports across the world 25 Throughput(Million TEUs/year) 20 15 10 5 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Year Hong Kong Singapore Shanghai Shenzhen LA/Long Beach Busan Kaohsiung (Taiwan) Rotterdam Los Angeles Hamburg Antwerp Long Beach Oakland Seattle Tacoma Vancouver Sea-tac be ac h (W C) Ch in a Sh an gh ai Ma la ys ia Ne wz ea la nd Si ng ap Ba or lt e im or Wi e( lm EC in ) gt on Ch ar (E le C) st on (E C) Ho ng ko ng Ja pa n Ca na da Sy dn ey Ro tt er Ma da ni m la MI CT La /l on g Average crane productivity at different container ports Average crane productivity 50 45 40 35 30 25 20 15 10 5 0 Moves/hr Transhipment percentages at Asian ports Comparison of productivity measures of different ports across the world(2004) Productivity measures of selected leading ports across the world (2004) 30 25 Los Angeles Long Beach Kwai Sing(HK) Singapore Rotterdam Antwerp Hamburg Tacoma Klang(Malaysia) Barbour's Cut 20 15 10 5 0 M TEUs [1000] [10000] [100] Throughput Density(TEUs/acre) Throughput/crane Throughput/quaylength(ft) The Freight Transportation System • With improvements in port productivity we are starting to see the bottleneck move away from the port and onto the landside infrastructure • Truck congestion around ports (Alameda Corridor) • Rail infrastructure delays and expansion • The infrastructure view needs to be mindful of corporate operations • Moves to internalize all costs (emissions)