External Costs of Domestic Container Transportation: Short‐Sea Shipping versus Trucking in Taiwan

Abstract

This paper explores the external costs of domestic container transportation in Taiwan by analysing the origin and destination of current container cargoes. After reviewing an extensive literature survey of methods of external cost, a comparison of external costs between trucking and short sea shipping (SSS) by corridor is made by using a model developed in this paper. Based on the findings that external costs of SSS are considerably lower than truck transport and can be a viable alternative to current domestic container cargo transportation, we discuss the significance and managerial implications of SSS from the perspective of green logistics. In so doing, a top‐down approach is employed for developing government policies, which aim to not only reduce the external costs of domestic container transportation but also promote SSS in Taiwan.     

Deregulating direct flights across the Taiwan Strait: The transformation of Eastern Asian air transport market and network

Over the past decades Hong Kong has been successfully playing a role as a gateway to China. Since 1988, it has also been the most important hub between Taiwan and China. Over 5 million passengers travelled between Taipei and Hong Kong in 1997, making the link the busiest in the world's international air links and contributing one-sixth of the passengers to Hong Kong airport, which before 1997 had the most international passengers in Asia. In the foreseeable future Taiwan will possibly start some direct services to China; the air link between Hong Kong and Taipei will then compete with many links across Taiwan Strait. These changes may cause the transformation of the market and network structure in eastern Asia. Niches of specific airlines and airports will disappear. This paper examines the issues of possible changes in eastern Asian air transport market: the current market environment, the problems for direct flights across Taiwan Strait, the possible links between Taiwan and China, the future role of Hong Kong, and the market structure in the future.     

Shipping Lines and Logistics

Abstract

It has been acknowledged that logistics is a driving force that shapes the integration of the transport chain. This paper argues that while the liner shipping industry exhibits increased horizontal integration, its vertical integration remains limited. A clear distinction is drawn between freight logistics, container logistics and vessel logistics. Freight logistics is defined as part of the supply chain process, the focus of which is the goods being transported. The purpose of container logistics is to optimize the movements of the containers themselves, an operation that is directly related to vessel logistics which is concerned with maximizing vessel utilization. The paper demonstrates that shipping lines have to find the correct balance between these three types of logistics. Their interest in vertical integration is primarily because the management of container logistics provides direct support to vessel logistics. Their involvement in freight logistics remains unclear and uncertain.     

Use of third-party logistics services by large US manufacturers in 1997 and comparisons with previous years

The use of third-party logistics services by large US manufacturers continues to grow. Increasingly, those services are used to support international sourcing and sales activities. Use of these services is often triggered by specific events such as a corporate restructuring, a top management change or a benchmarking effort. Nearly two-thirds of users report they experienced significant impediments in implementing third-party agreements. After starting conservatively, the typical user buys a wide variety of logistics services. Users generally report that buying logistics services has had a positive impact on their organizations, particularly with respect to logistics costs and customer service. However, many also report negative impact on employee morale linked to downsizing the logistics workforce. More than two-thirds of users report cancelling at least one-third-party logistics contract. Nevertheless, if given complete responsibility to make the decision, >70% of users would increase their companies' use of such services.     

Logistics as a driving force for development under the Belt and Road Initiative – the Chinese model for developing countries

ABSTRACT

An important objective of “the Belt and Road Initiative” is to promote the economic growth of countries in the region. China’s successful development experience, proposed in the initial stage of reform, can be summarised as “Looking for development, building the highway first”. This study is the first to evaluate whether logistics infrastructure has indeed contributed to economic growth by employing an error correction model with panel data from 2003 to 2014. In addition, we compare the influence levels of different sectors of logistics infrastructure in different regions, i.e. developed and developing regions. We focus on developing regions as they represent good development experiences for developing countries in the Silk Road Economic Belt. For developing regions, we find that the most influential factors are telecommunication and airway transportation, which should be the foci of attention in order to promote economic growth and reduce inter-region economic inequalities. The research confirms that logistics is indeed a driving force for economic growth in China, and that the contributions of specific sectors can be a useful reference for developing countries to determine prioritisation of investment in different logistics sectors across regions.     

Short-term work team scheduling models for effective road repair and management

Abstract

In this study, we focus on the development of work team routing/scheduling models incorporating stochastic travel and repair times. Robust and expected optimization concepts, combined with a time–space network technique, are used to develop the models. We perform numerical tests based on operational data for Taoyuan County in Taiwan. The test results show the good performance of the models.     

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.     

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).     

Framing the Nexus of Globalisation,Logistics and Manufacturing in Europe

Abstract

Under the ongoing influence of globalisation, supply chains have changed significantly. New logistics and manufacturing systems have emerged, causing longer transport distances and increasing transport emissions. The existing research into the sustainability impacts of freight transport has largely viewed it as being a macro-level economic and political phenomenon and has ignored the interdependencies amongst micro-level economic actors, including firms and businesses in the private sector. In this paper, we presume that the lack of conceptualisation of freight transport in relation to wider institutional contexts and firm behaviour results in the lack of a holistic approach to understanding freight governance in the face of globalisation. We argue for the use of institutional economic geography lenses to elucidate the distribution networks of emerging logistics and manufacturing practices and its implications for freight transport. We illustrate our argument through a broad look at the European logistics and manufacturing practices and global production.     

Selection Criteria of Transportation Mode: A Case Study in Four Finnish Industry Sectors

Abstract

This paper takes a closer look at the very basics of logistics and it analyses the selection criteria of transportation services from the industrial point of view as the main research problem. It also tries to establish a better understanding of which industrial sectors are using which mode of logistics services and why. According to the analysis, the high value and especially high price/kg ratio of products, short life cycles and worldwide markets are typical reasons to use rapid modes of transport. The high price/kg ratio of products and the short life cycles, for example in the electronics industry, cause high price erosion and support selecting transport based on speed, as proportional transport costs remain small, even when using expensive transportation modes. Based on the results, some of the future logistics needs were identified, and the aim is to help logistics service providers offer the exact services needed, providing better competitiveness for Finnish shipping companies operating in global markets. Logistics service providers are, for example, expected to have more powerful supply chain management capabilities than a single‐service provider can typically offer. Additionally, logistics service providers should have compatible operating systems with different parties of various supply chains to enable deliveries to different customer groups according to their industry’s required speed.     

International logistics in Lithuania at a time of transition

This paper examines the current situation in the largest of the Baltic States - Lithuania - with respect to the development of international transport and logistics in the context of the severe political, economic and social changes that have taken place since 1991. Utilizing statistics previously unavailable for the region, the paper examines the impact of transition and the competitive role of East European carriers upon a specific international movement of electronic goods between Frankfurt/Main in Germany and Vilnius in Lithuania, developing a detailed cost model for the alternative modal choices that are available - road and ship/road. Rail transport is excluded as no international rail services between the two countries are available and there are no plans for such services in the near future. From this, a series of issues for the future in the context of potential EU membership, transport infrastructure developments and logistical trends is analysed.     

Collaborative Logistics from the Perspective of Road Transportation Companies

ABSTRACT

To survive under the ever increasing competitive and global pressures to operate more efficiently, transportation companies are obliged to adopt a collaborative focus. Various types of cooperative supply chain relationships have been discussed in both professional and academic literature over the last decades. However, research on horizontal cooperation in logistics remains scarce and scattered across various research domains. Companies operating at the same level of the supply chain and performing comparable logistics functions may cooperate horizontally to increase their productivity, improve their service level and enhance their market position. In this paper, the focus is on the operational planning of horizontal cooperations between road transportation carriers. Following a scientific literature review, a distinction may be made between two operational approaches to horizontal logistics collaboration: order sharing and capacity sharing. For both research streams, a detailed overview of solution techniques proposed in literature is presented. Moreover, some interesting opportunities for future research are identified.     

The economic impact of logistics infrastructure: the case of PLAZA – the Zaragoza Logistics Platform

Abstract

The economics literature offers many examples of studies of the economic impact of transportation infrastructure such as highways, ports, and airports; however, little attention has been paid to other types of infrastructure such as logistics platforms. This article is a first assessment of the economic effects of the largest logistics platform in Europe – PLAZA, the Zaragoza Logistics Platform – located in Spain. More precisely, this paper analyzes the economic significance of PLAZA on the economy of the Aragon region where it is located. The methodology is based on the application of input–output analysis to the final demand of logistics platform-based companies in a manner that is similar to well-established studies of the economic impacts of tourism on tourist expenditure. This makes it possible to quantify the various levels of economic effects (direct, indirect, and induced) in terms of jobs, salaries, and wages, turnover, gross operating surplus (GOS), and gross value added (GVA). The conclusions reveal the economic importance PLAZA has for the regional economy of Aragon, representing just over 2% of total GVA and 3% of turnover.     

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.     

The Greening of Ports: A Comparison of Port Management Tools Used by Leading Ports in Asia and Europe

Abstract

From the policy and management perspective, this study aims to investigate the port management tools that port/public authorities have at their disposal and then to analyse to what extent the tools are used to enforce or encourage green port development at functional activities of port operations and development. We conduct an exploratory and comparative review based on two axes: on the one hand, the range of tools available to port authorities (pricing, monitoring and measuring, market access control and environmental standard regulation) and on the other hand, the functional activities in ports (shipping traffic, cargo handling and storage operations, intermodal connection, industrial activities, and port expansion). The situations in the leading ports in Asia and Europe, namely Singapore, Shanghai, Antwerp and Rotterdam are studied and compared, whereby the policies' effectiveness is discussed accordingly. Findings show that the ports are particularly mature in exercising environmental standard regulations which reveals that the enforcement approach is more prevalent. The most focused functional activity is shipping traffic which reflects that the ports are driven by the International Maritime Organisation. The respective port authorities in Antwerp and Rotterdam have a higher level of influence on devising green port policy in comparison to the two Asian ports.     

Evaluating Locations for Intermodal Transport Terminals

Abstract

The choice of location for an intermodal transport terminal is an important component in a regional logistics system and a paramount decision for the investor as well as the community affected. The investor needs a realistic estimation of traffic potentials and incorporated cost-estimates of a location, since it serves as an important input to the investment decision process. Policy makers need instruments and tools to analyse the effect of intermodal terminals on the surrounding environment, which also enables a comparison between several possible locations in order to ensure sustainability and long-term competitiveness. The model in this paper allows a comparative evaluation of a set of possible intermodal terminal locations based on considerations by relevant actors. Furthermore, it presents a process of retrieving data and effectively communicating results. Considerations and interests of stakeholders are incorporated into the approach by means of evaluative criteria. The approach aims at facilitating the planning process of regional logistics systems in general and the evaluation process of intermodal terminal locations in particular by considering both public and private interests focusing on economic and environmental aspects.     

Performance assessment of transport services with the ERM-NDEA model: evidence from a domestic airline in Taiwan

Abstract

This paper estimates comprehensive operational performance measures for transport services. A network efficiency approach is used to analyze the production efficiency, service efficiency, and operational efficiency in a unified framework to reflect the transportation service characteristics of airline operations. We show how a modified version of the network data envelopment analysis model can be utilized for evaluating the performance of air route operations. This study considers 15 air routes operated by a domestic airline in Taiwan to highlight the value of the approach. The results of the analysis show the inputs and consumed outputs leading to production inefficiency and service inefficiency respectively as well as the magnitudes of excesses and shortfalls.     

A Framework for Developing Driving Cycles with On‐Road Driving Data

Abstract

This paper attempts to propose a framework on driving cycle development based on a thorough review of 101 transient driving cycles. A comparison of the driving cycles highlighted that Asian driving is the slowest but most aggressive while European driving is the fastest and smoothest. Further review of the cycle development methodologies identified three major elements for developing a driving cycle; test route selection, data collection and cycle construction methods. A framework was eventually proposed based on these findings and recommendations from this review. First, traffic activity patterns and quantitative statistics should be considered in determining the test routes. Speed data can be collected by using chase car method, on‐board measurement techniques or their hybrid. As for the construction of driving cycle, the matching approach has been more commonly used. It is recommended that the tendency of zero change in acceleration, which has been commonly ignored in the literature, and the application of succession probability at second‐by‐second level should be further explored. A fifth mode, creeping, is also recommended for modal analysis for characterizing urban congested driving conditions.