Transportation

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Transportation
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What is Transportation?

• Transportation
• Physical Transport
• Handling (terminals, harbours)
• Storage (warehousing)
• Information processing
• Transportation Engineering
• Application of technology and science to the
  planning, functional design, operation and
  management of facilities for any mode of
  transportation.

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Transport Modes

• Road systems
• Railway systems
• Water-shipping systems
• Air transport systems
• Intermodal Transportation

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Road Systems
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Road Systems

• Advantages
• Flexible, easy to realize door-to-door
  transportation
• Convenient and simple loading/unloading
• Construction fee is relatively cheaper, compared
  with railway and air transport systems
• Disadvantages
• Energy consumption, oil price and its limited
  storage
• Social effects of roadway transportation, air
  pollution and noise pollution resulted from large
  vehicles
• Serious road congestion by urbanization.

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Truckload (TL)

• Package size ? Small to medium
• Average revenue per ton mile (1996) 9.13 cents
• Average haul 274 miles
• Average Capacity 42,000 - 50,000 lb.
• Low fixed and variable costs
• Major Issues
• Utilization
• Consistent service
• Backhauls

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Less Than Truckload (LTL)

• Average revenue per ton-mile (1996) 25.08
  cents
• Average haul 646 miles
• Higher fixed costs (terminals) and low variable
  costs
• Major Issues
• Location of consolidation facilities
• Utilization
• Vehicle routing
• Customer service

http//wps.prenhall.com/wps/media/objects/500/5128
03/chapter10.ppt
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Railway System
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Railway System

• Advantages
• Rapid, massive, lower unit cost
• Utilize dedicated route, on schedule operation
  guaranteed
• Disadvantages
• Destinations are restricted by railway route,
  door-to-door service impossible
• Expensive construction fees, cost justified only
  for routes between big cities and major business
  centers.

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Railways

• Fixed routing and scheduling
• Freight ? Bulk, oversize, containers, intercity,
  regional.
• Railways average statistics
• Revenue / ton-mile (1996) 2.5 cents
• Haul 720 miles
• Load 80 tons
• Key Issues
• Scheduling to minimize delays/improve service
• Off track delays (pick up delivery)
• Yard operations
• Variability of delivery times

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Water-shipping systems
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Exxon Valdez, 1989
http//people.hofstra.edu/geotrans
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RO-RO (Roll On - Roll Off) ships
http//people.hofstra.edu/geotrans
Vehicles are rolled on the ship's decks and
parked. The deck height can be adjusted to carry
bigger vehicles such as vans and trucks. Loading
or unloading such a ship is however labor
intensive as a driver is required to drive each
vehicle and park it at its appropriate onboard
location (or on a port parking facility if the
ship is being unloaded). The above photo was
taken at Le Havre port in France, an important
exporter of automobiles.
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Worlds Largest Dry-Bulk Carrier, the Berge Stalh
http//people.hofstra.edu/geotrans
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• Short and deep sea ships, platforms
• Fixed routing and scheduling
• Natural or artificial channels
• Cargo ? Bulk, cargo, mostly containers

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Air transport systems
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747-400 Docking at the Chek Lap Kok Airport (Hong
Kong)
http//people.hofstra.edu/geotrans
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• Planes, helicopters, balloons and zeppelins
• Rigid or semi-rigid routing and scheduling
• Freight ? High value items.
• Key Issues
• Location/Number of hubs
• Location of fleet bases / crew bases
• Schedule optimization
• Fleet assignment
• Crew scheduling
• Yield management

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Pipelines
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Trans-Alaska Pipeline
http//people.hofstra.edu/geotrans
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• Commonly oil, also drinking water and natural gas
• Rigid or flexible routing and scheduling
• One product per track (Exclusive system)
• Principal use
• Fluids
• Material handling in rough terrain
• Tunnels (concrete, excavated material)
• High rise construction (concrete)
• Bridge constructor (concrete)

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Intermodal Transportation

• Intermodal freight transport involves the
  transportation of freight in a container or
  vehicle, using multiple modes of transportation
  (rail, ship, and truck), without any handling of
  the freight itself when changing modes. The
  method reduces cargo handling, improves security,
  may reduce damages and loss, and may allow
  freight to be transported faster.

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An intermodal train carrying both shipping
containers and highway semi-trailers in
"piggyback" service, on flatcars, passes through
the Cajon Pass in February, 1995.
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Double-stacked container transport
http//people.hofstra.edu/geotrans
40-Foot Containers Doublestacked on a Rail Car
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Stacked 40-Foot Containers
http//people.hofstra.edu/geotrans
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Intermodal ship-to-rail transfer of containerized
cargos at the Port in Long Beach, California.
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Intermodal ship-to-rail transfer of containerized
cargos at APM Terminals in Portsmouth, VA.
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4th Generation Containership
http//people.hofstra.edu/geotrans
Containerization is a system of intermodal
freight transport cargo transport using standard
ISO containers (known as shipping containers or
isotainers) that can be loaded and sealed intact
onto container ships, railroad cars, planes, and
trucks.
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Emma Maersk
http//people.hofstra.edu/geotrans
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A portion of a "double stack" container train
operated by Union Pacific Railroad, the
containers are owned by Pacer Stacktrain.
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20-Foot Container on Truck
http//people.hofstra.edu/geotrans
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20-Foot Tank Containers
http//people.hofstra.edu/geotrans
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20 Containers being Unloaded to a Barge,
Shanghai 1992
http//people.hofstra.edu/geotrans
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Modal Choice
Source Rodrigue, J-P et al., Geography of
Transport Systems
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Load of the Global Transport System
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Performance Comparison
Capacity
Truck Equivalency
Vehicle
1500 Tons 52,500 Bushels 453,600 Gallons
57.7 (865.4 for 15 barges in tow)
Barge
100 Tons3,500 Bushels30,240 Gallons
3.8
Hopper car
10,000 Tons350,000 Bushels3,024,000 Gallons
384.6
100 car train unit
26 Tons 910 Bushels7,865 Gallons 9,000 for a
tanker truck
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Semi-trailer truck
2,116
5,000 TEU
Post-panamax containership
9,330
300,000 tons 2 million barrels of oil
VLCC
124 tons
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747-400F
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Comparison of the Relative Efficiencies of Rail
and Trucking in the United States
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Transportation System Design
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Alternative Transportation Design

• Direct Shipment Network
• Goods are shipped directly to retailers
• Routing of each shipment is known the supply
  chain manager needs to decide the shipment size
  and mode of transportation.
• Operation and coordination is very simple.
• Eliminate need for intermediate warehouses.

Supply Chain Management Strategy, Planning and
Operation, Sunil Chopra and Peter Meindl,
Publisher Prentice-Hall Inc. ISBN0-13-026465-2
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• Direct Shipping with Milk Runs
• Delivery from single supplier to multiple
  retailers from multiple retailers to single
  retailer
• Supply chain manager has to decide the route of
  each run.
• Also eliminate need for intermediate warehouses.
• Lowers the transportation cost.
• Replenishment lot size at the retail store may
  require Less than truck Load (LTL), but with the
  use of this method, shipments can be consolidated
  for number of retailers.
• Toyota uses this method to implement its Just in
  time, shipping parts from single supplier to its
  many closely located assembly plants.

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• Through central distribution center
• Shipments routed through a distribution center
• The retail stores are divided into geographic
  regions served by a distribution center (DC), an
  extra layer between the supplier and the retailer
  serves two important functions
• to store inventory
• to act as transfer location
• DC are very useful if inbound supply is in large
  quantities and manufacturer is far from retailer.
  
• DC can store these materials and ship to
  retailers whenever they need in smaller
  quantities.

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• Cross Docking
• Take a finished good from the manufacturing plant
  and deliver it directly to the customer with
  little or no handling in between.
• Reduces handling and storage of inventory
• See lecture on distribution system design

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• To help manage above mentioned transportation and
  storage needs and concentrate more on their core
  activities companies have started outsourcing
  logistics.
• Outsourcing logistics in short span of time has
  become a multi-billion dollar industry. According
  to the director of outsourcing consulting, George
  Logemann, and outsourcing is 30 bullion to 40
  billion global industry6 . And it is growing !!
  
• For companies whose core competency is not
  distribution and neither have the resources to
  make it one, outsourcing logistics function can
  be a smart decision. It can free resources both
  in terms of time and finance to focus on
  mission-critical and core activities7 .

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Tradeoffs in Transportation Design

• Transportation, facility, and inventory cost
  tradeoff
• Choice of transportation mode
• Inventory aggregation
• Transportation cost and responsiveness tradeoff