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Article
Publication date: 16 June 2020

Xu Zhang and Hans-Joachim Schramm

This paper presents an overview of the recent development of Eurasian rail freight in the Belt and Road era and further evaluates its service quality in terms of transit times and…

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Abstract

Purpose

This paper presents an overview of the recent development of Eurasian rail freight in the Belt and Road era and further evaluates its service quality in terms of transit times and transport costs compared to other transport modes in containerised supply chains between Europe and China.

Design/methodology/approach

A trade-off model of transit time and transport costs based on quantitative data from primary and secondary sources is developed to demonstrate the market niche for Eurasian rail freight vis-a-vis the more established modes of transport of sea, air and sea/air. In a scenario analysis, further cargo attributes influencing modal choice are employed to show for which cargo type Eurasian rail freight service is favourable from a shipper's point of view.

Findings

At present, Eurasian rail freight is about 80% less expensive than air freight with only half of the transit time of conventional sea freight. Our scenario analysis further suggests that for shipping time-sensitive goods with lower cargo value ranging from $US1.23/kg to $US10.89/kg as well as goods with lower time sensitivity and higher value in a range of $US2.46/kg to $US21.78/kg, total logistics costs of Eurasian rail freight service rail is cheaper than all other modes of transport.

Practical implications

As an emerging competitive solution, Eurasian rail freight demonstrates to be an option beneficial in terms of transport cost, transit time, reliability and service availability, which offers a cost-efficient option enabling shippers to build up agile and more sustainable supply chains between China and Europe.

Originality/value

Our study firstly provides a comprehensive assessment of present Eurasian rail freight including a thorough comparison with alternative modes of transport from a shipper's point of view.

Details

The International Journal of Logistics Management, vol. 31 no. 4
Type: Research Article
ISSN: 0957-4093

Keywords

Open Access
Article
Publication date: 31 December 2003

Jess Browning

In the 21st Century, a region 's growth and prosperity will depend upon its intermodal transportation infrastructure and its ability to efficiently move goods, materials, and…

Abstract

In the 21st Century, a region 's growth and prosperity will depend upon its intermodal transportation infrastructure and its ability to efficiently move goods, materials, and people within the system whether it be from origin to destination; from supplier to customer through the various levels of the supply-chain; or from point to point within the system. Planning for the future focuses on improving a region 's intermodal transportation system efficiencies and infrastructure, its connection to other economies, and on the development of logistics institutions and facilities.

With China 's rapidly developing economy and society, record numbers of new modern facilities such as airports, ports, highways, logistics parks and warehouses are being built. Along with this, companies have made extensive investments in information technologies and software to support the tremendous growth that has taken place in the logistics industry. The development and improvement of China's historic inland water transport system is essential to their continued future growth and prosperity. In Korea, past and present National Governments have emphasized the importance of developing a North East Asian Logistics and Business Hub in their region and have worked on strategies, which include water transport, as part of an important national agenda to that end.

This article looks at how trade flows in the Yangtze and Yellow Sea Regions and between China and South Korea might be enhanced by application of improved shipping methods in marine commerce that will promote economic growth in the region. The application of logistics practices and use of barges is explored for the movement of containers on inland and coastal waterways as well as in short sea shipping which could greatly facilitate the region 's situation with respect to future economic growth.

Details

Journal of International Logistics and Trade, vol. 1 no. 1
Type: Research Article
ISSN: 1738-2122

Book part
Publication date: 12 January 2012

Alexandros M. Goulielmos, Venus Y. H. Lun and Kee-Hung Lai

To examine the EU ‘Short Sea Shipping’ (SSS), its ‘motorways of the sea (MoS)’ and green ports, within short sea maritime logistics.To present past research and report recent…

Abstract

To examine the EU ‘Short Sea Shipping’ (SSS), its ‘motorways of the sea (MoS)’ and green ports, within short sea maritime logistics.

To present past research and report recent developments speculating on future trends.

The dominance of SSS over road is questioned; as road transport has expanded, hubs are expected to become larger and fewer with feeders. Road transport is not certain to follow SSS and its four motorways. This result was responsible for the relocation of industry from West to East and North–East inter-port competition.

The SSS ship size and port are undefined; specific data on these concepts are unavailable.

‘Door-to-door’ services are highly sought after in this sector, but difficult to establish.

The green element introduced here, mainly for ports, will dominate future discussions because of the high importance given to climate change.

This chapter outlines for the first time the development of the policy on EU Eco-ports, the relocation of industry, the West–East port competition, the MoS and the long-term deterioration of SSS logistics which is likely to persist in the future.

Open Access
Article
Publication date: 30 January 2004

Jess Browning and Seung-Hee Lee

The Incheon Region has numerous assets that fall within a Pentaport model.' These include the Incheon International Airport, the Port of Incheon, a coastal industrial park, free…

Abstract

The Incheon Region has numerous assets that fall within a Pentaport model.' These include the Incheon International Airport, the Port of Incheon, a coastal industrial park, free economic zones, a leisure port, and Songdo new town designed to be the future Silicon Valley of Korea. This paper looks at how Northeast Asia trade flows between China and Korea might be enhanced by application of the Pentaport model in making the Incheon region a North East Asian Hub. It looks also at their trade and logistics systems as well as their water borne commerce. It proposes an integrated transportation system for the Yellow Sea Region being beneficial to the economies of the Northeast Asia. It also stresses that innovative technologies for ships, terminals and cargo handling systems should be introduced to develop a competitive short sea shipping system in the region and cooperation among the regional countries will be essential to achieve the final goal. The potential of methods of container shipping is discussed as it might apply to short sea shipping in the Yellow Sea Region that could greatly facilitate Incheon's situation with respect to the broader region in application of the Pentaport model.

Details

Journal of International Logistics and Trade, vol. 1 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Article
Publication date: 1 June 2004

Ruth Banomyong

Lao PDR, as the sole land‐locked country in South East Asia, is dependent upon available infrastructure in neighbouring countries for fast and efficient import of goods. The…

2582

Abstract

Lao PDR, as the sole land‐locked country in South East Asia, is dependent upon available infrastructure in neighbouring countries for fast and efficient import of goods. The validity of a cost model for multimodal transport, which was originally proposed by Beresford and Dubey (1990) and developed by Beresford (1999), is tested against a real case in international logistics, namely the import of wine from Marseilles in France to Vientiane in Lao PDR. The main elements of the model are as follows: cost, time, distance, transport mode and intermodal transfer. The model is tested using real data over a series of alternative routes between Marseilles and Vientiane. The selection of appropriate international logistics system will have a direct impact on the efficiency of Lao PDR import channels. The research findings clearly demonstrate that the “sea‐road” combination via Danang Port in Vietnam is the most competitive in terms of costs while the “sea‐rail‐road” option via port Klang in Malaysia and through Thailand offers the fastest transit time.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 16 no. 2
Type: Research Article
ISSN: 1355-5855

Keywords

Open Access
Article
Publication date: 30 June 2007

Nilufer Oral

The Black Sea region has become as an important energy transit route for Caspian and Russian oil and natural gas to western markets. Since 1996 the quantity of oil exported from…

Abstract

The Black Sea region has become as an important energy transit route for Caspian and Russian oil and natural gas to western markets. Since 1996 the quantity of oil exported from the Black Sea through the Turkish Straits and the number of transiting tankers has doubled and will continue to expand. However, these are also two waterways where the risk of either an accidental or intentional disaster is significant bringing serious repercussions for energy supply security. This paper will analyze measures taken by Black Sea coastal States to provide for secure ports and shipping against accidental and intentional disasters. The paper will examine the role of technology, such as satellite based VTS providers in the Black Sea, implementation of the ISPS Code, the role of the relatively new BlackSeaFor in providing both port and navigational security. The paper will further make recommendations for further improvements for enhancement of security emergency response planning. In addition, the paper will examine current security measures taken by the Turkish Administration for oil transportation through the Turkish Straits.

Details

Journal of International Logistics and Trade, vol. 5 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Article
Publication date: 1 August 2016

Antonino Galati, Dario Siggia, Maria Crescimanno, Enrique Martín-Alcalde, Sergi Saurí Marchán and Pau Morales-Fusco

The purpose of this paper is to analyse the economic benefits of short sea shipping (SSS) in the shape of Motorways of the Sea (MoS) compared to road transport. The study cover a…

Abstract

Purpose

The purpose of this paper is to analyse the economic benefits of short sea shipping (SSS) in the shape of Motorways of the Sea (MoS) compared to road transport. The study cover a gap in agro-food economics and analyses the economic benefits of sea transport mode compared to road transport in the food trade between Spain and Italy for a specific product: olive oils.

Design/methodology/approach

Three different transportation scenarios are considered (road only, road combined with accompanied SSS and road combined with unaccompanied SSS) linking the main olive oil production and consumption areas in Spain and Italy. In each scenario the cost per unit shipped have been calculated.

Findings

The results show the road option is about 30 and 34 per cent more costly than the best SSS option available for the exportations from Jaén and Southern Catalonia, respectively.

Research limitations/implications

The need of further research is identified, mainly focused in two directions: first, the need for inclusion of new variables to the model (e.g. value of time, seasonality, complexity of the transport chain, potential demand, etc.) to better assess the competitiveness of the sea connection and, second, a study of the environmental impact and socio-economic benefits of SSS implementation for the agri-food sector.

Originality/value

The research enriches the current literature on this field and provides a basis for future studies. In particular, it corroborates the strategic decisions taken in the framework of European transport policy demonstrating a greater economic sustainability of SSS, and more specifically MoS, compared to the road transport.

Details

British Food Journal, vol. 118 no. 8
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 7 August 2017

Henrik Pålsson, Lena Winslott Hiselius, Sten Wandel, Jamil Khan and Emeli Adell

The Swedish government is likely to implement longer and heavier road freight vehicles, so-called high-capacity vehicles (HCVs), in the near future. The purpose of this paper is…

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Abstract

Purpose

The Swedish government is likely to implement longer and heavier road freight vehicles, so-called high-capacity vehicles (HCVs), in the near future. The purpose of this paper is to analysis the expected effects on the whole transport system regarding tonne-kilometres, vehicle-kilometres on road, CO2 and socio-economics with three possible implementation strategies (HCVs on all roads, a designated road network and a designated road network with a kilometre-based truck charge) and two vehicle types (74 t/25.25 m and 74 t/34 m).

Design/methodology/approach

Calculations are based on two well-established scenarios for transport development in Sweden. Changes per tonne-kilometre are modelled for ten product groups with considerations taken to their transport networks. Socio-economic effects are analysed using the net present value rating method over a 40-year period.

Findings

The study shows the increase in demand for transport and the modal shift, from rail and sea to road, in terms of tonne-kilometres, vehicle-kilometres and CO2 emissions for three implementation strategies of HCVs in two scenarios. All implementation strategies show a positive social net-benefit with the introduction of HCVs.

Research limitations/implications

The results reveal potential benefits to the implementation of HCVs. The results are limited by possible over/under-estimations of effects considered in the calculations, due to uncertainties and assumptions.

Practical implications

The results highlight expected levels of modal shift and induced transport for different HCV implementation strategies and how they depend on transport and climate policies and the expected growth of tonne-kilometres.

Originality/value

The calculations consider socio-economic effects, particularly from increased CO2 emissions due to modal shift and induced traffic, which is lacking in previous studies. To balance conflicting economic and environmental goals, the findings indicate that the implementation of HCVs could be accompanied by other policy measures. The findings are based on the Swedish context, but the model can be adapted to other countries or regions and to study other freight transport reforms.

Details

International Journal of Physical Distribution & Logistics Management, vol. 47 no. 7
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 25 January 2011

Anthony Beresford, Stephen Pettit and Yukuan Liu

This paper aims to analyse available multimodal transport route variations for iron ore shipments from northwest Australia to northeast China, focusing on a major iron and steel…

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Abstract

Purpose

This paper aims to analyse available multimodal transport route variations for iron ore shipments from northwest Australia to northeast China, focusing on a major iron and steel manufacturer.

Design/methodology/approach

The research is focused on a case study and uses an established cost model as a framework, for the first time, in the context of heavy bulk cargo shipments. Field interviews and a questionnaire form the principal methods of primary data collection. The characteristics of bulk iron ore transport flow are analysed against traditional criteria and an appraisal of the transport infrastructure in north east China is made, considering both road and rail options, and various possible combinations for transport being evaluated. All factors affecting modal choice in the region are examined, including cargo volume, weight, and value, transport distance, transit time, transport costs and schedule reliability.

Findings

The volumes of iron ore moved are large, with a high weight‐to‐volume ratio, and shipments are regular. The research initially confirms that sea and rail transport combinations are the most appropriate for the movement of iron ore. However, where rail transport corridors are congested, provided that the transport distances are not too great, road haulage appears to be an effective substitute and the most competitive multimodal transport route, at least in the short to medium term, is found to be a rail‐sea‐road combination via Port Bayuquan in China.

Research limitations/implications

The research focuses on the delivery of iron ore to one major steel manufacturer in northeast China; so findings may not be transferable to other companies or circumstances.

Practical implications

The paper first demonstrates that, for heavy, high volume cargoes concentration of flows on to one corridor, perhaps under the control of one service provider, maximises scale economies, but works against competition and route/mode choice. Second, it demonstrates that, for long haul shipments of iron ore, port variations and modal differences for inland transport yield only marginal differences in overall logistics costs.

Originality/value

An assessment of high volume/heavy/low value cargoes such as iron ore has not previously been undertaken using this cost model. This paper therefore provides an original analysis of such supply chains.

Details

Supply Chain Management: An International Journal, vol. 16 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

Book part
Publication date: 4 December 2014

Hyun-Chan Kim, Alan Nicholson and Diana Kusumastuti

This study aims to identify the determinants of transport mode choice and the constraints on shifting freight in New Zealand (NZ) from road to rail and/or coastal shipping, and to…

Abstract

Purpose

This study aims to identify the determinants of transport mode choice and the constraints on shifting freight in New Zealand (NZ) from road to rail and/or coastal shipping, and to quantify the trade-off between factors affecting shippers’ perceptions, to assist in increasing the share of freight moved by non-road transport modes.

Methodology

A revealed preference survey of 183 freight shippers, including small and medium enterprises and freight agents in NZ, is used to investigate whether freight shippers’ characteristics affect their ranked preference for attributes related to mode choice and modal shift. Additionally, a rank-ordered logistic (ROL) model is estimated using the ranking data.

Findings

The results reveal several distinct types of transport mode choice behaviour within the sample and show how the preferences for timeliness, cost, accessibility, damage and loss, customer service, and suitability vary between industry groups and business types. Also, the ROL method allows us to identify heterogeneity in preferences for mode choice and mode shift factors for freight within NZ.

The results imply that NZ shippers ranked transport time as the most significant constraint upon distributing goods by rail, while accessibility and load size were the most significant constraints upon using coastal shipping. The study also identifies how NZ shippers’ modal shift constraints vary according to the firm’s individual or logistical characteristics.

Research implications

This study informs freight transport policy makers about the needs of NZ shippers by providing quantitative measures of the intensity of preference for the various mode choice factors.

Practical implications

Those involved in freight transport have a better basis for formulating transport policy.

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