Identifying Governance Relationships Between Intermodal Terminals and Logistics Platforms

Abstract

Governance theory examines different ways of managing resources and relationships in order to achieve a desired outcome. This paper applies governance theory to intermodal terminals and logistics platforms, extending previous work on ownership to include different operational models. An inductive methodology is used to derive a typology of governance relationships from an analysis of the transport and logistics literature. The classification developed in this paper explores different kinds of integration that can help support growth of intermodal transport services. The understanding of transport governance is extended via three key relationships: first, between the logistics platform and the site tenants (therefore, encouraging consolidation and efficiencies that can boost rail services at the site); second, between the terminal operator and rail service provision (which can aid service planning and train loading factors); and third, between the inland site (either terminal, logistics platform or both) and port(s), (thus enabling better planning and efficiency of port rail shuttles).     

New operating concepts for intermodal transport: The mega hub in Hanover/Lehrte in Germany

In intermodal logistics, combined transport operators and railway companies are engaged in the development of efficient block train concepts. The proportion of transport using single railway wagons is decreasing because of its poor time-quality ratio. In future, transport services will be focussed on industrial zones and large cities that offer the transport volumes required for direct train operation. In this regard, it will become more difficult for regions with smaller load volumes to be integrated into a combined transport network. In order to confront this trend, new concepts for bundling transport volumes have to be developed. One such concept is the 'mega hub'. The core idea is to interchange load units between several block trains during a short stop at an intermodal terminal. The paper provides an overview of the operating concept of the mega hub and the opportunities for intermodal transport operators.     

Economic organization of intermodal transport

The paper considers in detail strategic changes occurring in the organizational context of intermodal transportation and discusses the application of economic approaches (primarily transaction-cost economics) for assessing the effectiveness of the appropriate governance structure in organizing the intermodal transport economic system. The paper reviews the developments in intermodal transportation, particularly in the context of logistics and supply chain management, and recognizes the trend for the formation of one-stop shopping megacarriers spurred by deregulation and market requirements. This culminates in the need to consider how companies should organize the economic governance of the intermodal transport system. The main governance structures include market (subcontracting) or hierarchy (internal organization). The transaction-cost economics approach is reviewed and applied at a conceptual level to provide the core basis upon which the assessment of the optimal governance structure in intermodal transport can be based. The review of the core economic principles indicates that the governance structure in intermodal transport is dependent on transaction costs, production costs and strategic considerations that a particular structure might entail and the policy implications thereof. The potential for empirical research in the application of the transaction-cost economics approach to intermodal transport is discussed and detailed direction for further empirical research is provided as well as discussion of policy implications particularly with respect to competition and antitrust.     

Multiple criteria and fuzzy based evaluation of logistics performance for intermodal transportation

This paper presents a framework to evaluate the logistics performance of intermodal freight transportation. Fuzzy set techniques are applied to assess the logistics performance within the decision process of freight operators. Using a fuzzy‐based approach, fuzzy‐AHP is applied to assess the criteria by different judgment procedures. Consequently, fuzzy‐MCDM is used to assess operators' perception of the logistics performance via proper assignment of numerical scores. The subjective judgments for hierarchical criteria are transformed into fuzzy degrees of score. The methodology provides an alternative approach to facilitate the importance of a set of performance criteria. It can also entail use of improved corresponding parameters to develop a better freight transport system.     

Kink in the intermodal supply chain: interorganizational relations in the port economy

The intermodal logistics supply chain is designed to move goods from the point of production to the point of consumption as quickly and as cheaply as possible. The ability to accomplish this objective has allowed for the wholesale geographic relocation and offshoring of basic manufacturing and assembly. As a chain of linked and integrated organizations characterized by sequential interdependence, interorganizational relations play a key role in determining the level of integration and seamlessness. Yet there is one critical interorganizational link in the chain that deviates from this vision. This is the relationship between the shipping container terminal and drayage trucking operations which is better described as a form of intermodal disintegration. The weakness in this link of the supply chain is explained by the divergent industrial structures and labor market conditions, the unique nature of the transaction, and the externalization of costs to subordinate workers.     

Automated shunting of rail container wagons in ports and terminal areas

The development of intermodal container transport is hampered in part by the cost associated with the shunting of trains in marshalling yards, inland and port railway terminals. Many new technologies have been developed in the past decade, but have still not been applied because of high capital investment costs, lack of sufficient market demand and uncertain rates of return. The key for increasing the competitiveness of intermodal container transport by rail is the operation of heavy haul container trains between port and inland railway terminals more frequently with fast, flexible and automatic transhipment, shunting and coupling of container wagons. The operation of self-driven railcars equipped with automatic centre coupling on terminal tracks, which can also be train-hauled on conventional hinterland railway lines, would enable a reduction of shunting and transhipment time and costs in intermodal container terminals by more than 30%.     

Analytic hierarchy process application in selecting the mode of transport for a logistics company

As a multi‐criteria decision‐making (MCDM) method, the analytic hierarchy process (AHP) has been used considerably to solve hierarchical or network‐based decision problems in socio‐economic fields. Following an in‐depth explanation of the transport function in logistics and an overview of the MCDM methods, the AHP model is employed in the paper for a logistics company in selecting the most suitable way of transportation between two given locations in Turkey. The criteria used in the selection of transportation modes are identified as the cost, speed, safety, accessibility, reliability, environmental friendliness, and flexibility. Several cost parameters (transportation, storage, handling, bosphorus crossover) are incorporated into the decision‐making process. The application is carried out in instructional character. The results of the study indicate that the railway transportation, which is not widely used in Turkey, is also an alternative and suitable means of transportation. Copyright © 2013 John Wiley & Sons, Ltd.     

Location selection of city logistics centers under sustainability

City Logistics Centers (CLC) are an important part of the modern urban logistics system, and the selection of the location of a CLC has become a key problem in logistics and supply chain management. Integrating the economic, environmental, and social dimensions of sustainable development, this paper presents a new evaluation system for the location selection of a CLC from a sustainability perspective. A fuzzy multi-attribute group decision making (FMAGDM) technique based on a linguistic 2-tuple is used to evaluate potential alternative CLC locations. In this method, the linguistic evaluation values of all the evaluation criteria are transformed into linguistic 2-tuples. A new 2-tuple hybrid ordered weighted averaging (THOWA) operator is presented to aggregate the overall evaluation values of all experts into a collective evaluation value for each alternative, which is then used to rank and select alternative CLC locations. An application example is provided to validate the method developed and to highlight the implementation, practicality, and effectiveness by comparing with the fuzzy Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) method.     

Gantry crane operations to transfer containers between trains: A simulation study of a Spanish terminal

Freight transfer operations are critical in combined transport networks. In this paper a simulation model and modelling approach to the transfer of cargo between trains at rail terminals is presented. The model is used to study the Port-Bou terminal, the main intermodal terminal at the Spanish-French frontier. Four different gantry crane operation modes to interchange containers between trains are evaluated. These operation rules are tested in several scenarios to examine the critical factors of the system and the best operation rule for each situation. Latest generation software is used to develop the model that incorporates modular programming and enhanced graphic systems for output representation. It allows a dynamic display of the simulated system and, likewise, the possibility of developing modules that can be reused in other studies. The research shows how simulation can be a useful planning tool in the rail transportation context.     

A Fuzzy Set Approach for a Location-Inventory Model

Abstract

In the supply chain, production and logistics facilities are positioned between the customer and supply markets. As a consequence, any changes in these markets should cause the enterprise to re-evaluate its location and the capacity of its activities at that particular location in the logistics network, which also means re-evaluating the parameters of input-output matrices for the entire supply chain. Different analytical approaches have been developed to describe the influence of production on the hierarchical spatial pattern. Our article presents a fuzzy set approach to the model of spatial hierarchy as a result of spatial interactions. We attempt to present the difference between net present value estimated by a fuzzy approach on the one hand and report on an analytical approach to the problem on the other.     

Internalization of Transportation External Costs: Impact Analysis of Logistics Company Mode and Route Choices

Abstract

This study focuses on the mode and route choices of a logistics company in a situation involving intercity transportation with networks of surface roads, highways and a railway. A method of transportation network analysis is applied to construct a logistics company mode and route choice models with the objective of minimizing total distribution and external costs. This study also assumes that the fleet number and vehicle capacities are given. Freight distributed from a distribution center to given retailers or consumers via surface road/highway links or via intermodal transportation involving surface road/highway links and a railway. In terms of model construction, this study first explores the routing and sequence of the retailers and consumers served by each vehicle. Second, the study internalizes the external cost of air pollution into the total distribution cost, to analyze the influences of external cost burdens on a logistics company mode and route choices from a user charge perspective. Finally, the study designs a heuristic algorithm for solving the above models, and illuminates the modeling process using a numerical example.     

September 11 and the World Airline Financial Crisis

Abstract

This paper analyses the effectiveness of policy measures aimed at triggering a modal shift in the freight transport market. The analysis is based on the inventory‐theoretic framework that studies modal choice from a business logistics viewpoint. The crux of the inventory‐theoretic approach lies in the fact that explicit attention is paid to all costs in the supply chain that are affected by the choice of transport mode. After a brief literature review on the inventory‐theoretic framework, the framework is used to calculate the market shares of different freight transport modes for a hypothetical transport market. In a second step, the impact of some policy measures on the market shares of the transport modes is calculated. By way of illustration, the analysis is applied to the market for container transport from a seaport to its hinterland. It is shown that a combination of certain policy measures can lead to significant modal shifts from road transport to intermodal transport.     

Optimum Capacity for Intermodal Container Terminals

Abstract

Achievement of a desirable level of customer service at intermodal terminals mainly depends on the efficient loading and unloading of trains without delays. The efficiency of the transfer between the modes in the terminal area can have a significant effect on these delays. In this article, an analytically based simulation model is developed to investigate delays of trains for different service configurations. Simulation outputs are used to find an optimum balance of the cost of train delays and variation from the desired level of service. Data from the Acacia Ridge Terminal in Brisbane, Australia are used to validate and test the model.     

Logistic performance evaluation of provinces in Turkey: A GIS-based multi-criteria decision analysis

Logistics performance evaluation of provinces is considered in this study. To do so, a three-step solution approach is developed: (i) determination of 16 geographic and economic indicators, (ii) using geographic information system to assign a logistics score and (iii) prioritizing the indicators and ranking the provinces using multi-criteria decision analysis tools. Proposed methodology is applied to 81 provinces in Turkey as a case study. Results show that the provinces of Istanbul, Izmir, and Hatay are the pioneers. The proposed methodology provides the ability to analyze the impacts of indicators on logistics performance and create a logistics performance map of countries.     

A dispatching decision support system for countering delay propagation in intermodal logistics networks

This paper specifies a dispatching decision support system devoted to managing intermodal logistics operations while countering delay and delay propagation. When service disruptions occur within a logistics network where schedule coordination is employed, a dispatching control model determines through an optimization process whether each ready outbound vehicle should be dispatched immediately or held to wait for some late incoming vehicles. Decisions should consider potential missed-connection costs that may occur not only at the next transfer terminals but also at hubs located further downstream. Numerical examples and a sensitivity analysis with different slack time settings for attenuating delay propagation are presented.     

A fuzzy-stochastic optimization model for the intermodal fleet management problem of an international transportation company

ABSTRACT

In this paper, a fuzzy-stochastic optimization model is developed for an intermodal fleet management system of a large international transportation company. The proposed model integrates various strategic, tactical and operational level decisions simultaneously. Since real-life fleet planning problems may involve different types of uncertainty jointly such as randomness and fuzziness, a hybrid chance-constrained programming and fuzzy interactive resolution-based approach is employed. Therefore, stochastic import/export freight demand and fuzzy transit times, truck/trailer availabilities, the transport capacity of Ro-Ro vessels, bounds on block train services, etc. can also be taken into account concurrently. In addition to minimize overall transportation costs, optimization of total transit times and CO₂ emission values are also incorporated in order to provide sustainable fleet plans by maximizing customer satisfaction and environmental considerations. Computational results show that effective and efficient fleet plans can be produced by making use of the proposed optimization model.     

Achieving transport modal split targets at intermodal freight hubs using a model predictive approach

The increase of international freight commerce is creating pressure on the existing transport network. Cooperation between the different transport parties (e.g., terminal managers, forwarders and transport providers) is required to increase the network throughput using the same infrastructure. The intermodal hubs are locations where cargo is stored and can switch transport modality while approaching the final destination. Decisions regarding cargo assignment are based on cargo properties. Cargo properties can be fixed (e.g., destination, volume, weight) or time varying (remaining time until due time or goods expiration date). The intermodal hub manager, with access to certain cargo information, can promote cooperation with and among different transport providers that pick up and deliver cargo at the hub. In this paper, cargo evolution at intermodal hubs is modeled based on a mass balance, taking into account hub cargo inflows and outflows, plus an update of the remaining time until cargo due time. Using this model, written in a state-space representation, we propose a model predictive approach to address the Modal Split Aware – Cargo Assignment Problem (MSA–CAP). The MSA–CAP concerns the cargo assignment to the available transport capacity such that the final destination can be reached on time while taking into consideration the transport modality used. The model predictive approach can anticipate cargo peaks at the hub and assigns cargo in advance, following a push of cargo towards the final destination approach. Through the addition of a modal split constraint it is possible to guide the daily cargo assignment to achieve a transport modal split target over a defined period of time. Numerical experiments illustrate the validity of these statements.     

Evaluating gravel transport sustainability: A case study of Taiwan’s northeast corridor

We use social-eco-efficient analysis in the form of SEEbalance to evaluate gravel transport sustainability for trucking and two kinds of intermodal transportation. Results show that switching from trucks to intermodal transportation can improve the sustainability of gravel transportation in the northeast corridor of Taiwan. Sensitivity analysis shows that rail combined with truck intermodal transportation has competitive advantage despite the terminal’s location factor.     

Personal security as a transport issue: a state‐of‐the‐art review

The possibility of experiencing attack, assault, violence, robbery, harassment or other anti‐social behaviour has become an important influence on traveller decision‐making. Fear and apprehension about personal security can affect all aspects of travel choice (e.g. choice of route, mode, time of journey, etc.), including whether to travel at all. Indeed, in some locations an informal curfew is reported to operate. However, both the degree and widespread extent of such fears indicate that unacceptable constraints on personal liberty do exist in many locations.

This paper firstly reviews the extent and nature of the problem considering recorded crime statistics, reported levels of fear and apprehension when using transport facilities and subsequent modifications to travel behaviour. Secondly, a range of possible responses by transport operators, policing agencies and national and local government are examined under four broad headings: policing and staffing; situational crime prevention; social crime prevention; and the level and quality of transport service provision.

It is concluded that personal security considerations need to be explicitly incorporated into decisions concerning the design, planning, operation and management of transport systems. It is also important that institutional structures exist to permit the issue both to be recognized and tackled.