LOGISTICS AND INTERMODAL TRANSPORT

- JASON MONIOS -

- RICKARD BERGQVIST -

- FIRST EDITION –

- COPYRIGHT - By Dr. Luis ALFARO, YEAR 2024

LOGISTICS AND INTERMODAL TRANSPORT

PART I:
INTRODUCTION

SECTION II:

CHAPTER 1:
INTRODUCTION
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SouthStar Management Institute, Da Nang, Vietnam.

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Dr. Luis Alfaro

Director of Ports, Logistics and SCM
DUY TAN UNIVERSITY
The SouthStar Management Institute (SMi)
254 Nguyen Van Linh St., Danang, Vietnam
T: (+84) 236.365.0403 (Ext. 606) - (+84) 236.382.7111
E: [email protected] │ [email protected]
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Chapter Outline INTRODUCTION
01

02 THE ORIGINS OF
INTERMODAL TRANSPORT

03 SPATIAL CONCEPTS IN
INTERMODAL
TRANSPORT
04 POLICY AND PLANNING
FOR INTERMODAL
TRANSPORT
 • Infographic Style
03 SPATIAL CONCEPTS IN INTERMODAL TRANSPORT

A node may be defined simply as a

location or a point in space; in the case
of transport, this would represent an
origin or destination point.
 • Infographic Style
03 SPATIAL CONCEPTS IN INTERMODAL TRANSPORT

A node can serve as an access point

to join a transport network, or it may be
a point joining two linkages within a
system. Two defining characteristics
of such nodes are centrality and
intermediacy.
 • Infographic Style
03 SPATIAL CONCEPTS IN INTERMODAL TRANSPORT

CENTRALITY

A central location exerts a

centripetal pull on the region.
 • Infographic Style
03 SPATIAL CONCEPTS IN INTERMODAL TRANSPORT

INTERMEDIACY

Refers to an intermediate
location in between centers.
 • Infographic Style
03 SPATIAL CONCEPTS IN INTERMODAL TRANSPORT

NODE

Nodes can also be defined as points of articulation or interfaces between spatial

systems (Rodrigue, 2004), particularly different levels (e.g. local and regional) and
types (e.g. intermodal connections), but the articulation concept can also include
joining different categories of system, such as transport and logistics systems.
This involves the relation of the transport activity to other related activities, such
as processing, distribution and all activities within the wider logistics system
(Hesse and Rodrigue, 2004).
 • Infographic Style
03 SPATIAL CONCEPTS IN INTERMODAL TRANSPORT

LOCATION = POINTS = NODES

ALL are joined by links. These links may be physical, meaning either fixed, such
as roads, rail track and canals, or flexible links such as sea routes. They may also
be operational links, referring to services, such as road haulage or shipping
schedules. In operational terms, links can be measured in terms of their capacity,
current usage and congestion. Nodes are often rated by their connectivity, which
could either refer to the number and quality of physical links or the number and
frequency of operational links.
 • Infographic Style
03 SPATIAL CONCEPTS IN INTERMODAL TRANSPORT

LOCATION = POINTS = NODES

Operational strategies of freight operators go beyond single links and can be

expressed in various ways, such as hub-and-spoke, string (several actors) or
point-to-point.

These combined operational plans then become transport networks, either a

single company network or the accumulation of all available services within a
given area.
 • Infographic Style
03 SPATIAL CONCEPTS IN INTERMODAL TRANSPORT

NETWORK

It can be defined as the set of links between nodes. Again, this may be considered
from a physical or operational perspective.

A high-quality network may contain a number of nodes with high connectivity, high
centrality and high intermediacy, linked to each other with frequent, high capacity
services within a small number of degrees.
 • Infographic Style
03 SPATIAL CONCEPTS IN INTERMODAL TRANSPORT

CORRIDOR

It can be defined as an accumulation of flows and infrastructure (Rodrigue, 2004).

In some ways, the concept of a corridor is somewhat arbitrary and may be used
for branding or public relations (PR) purposes. This is because, beyond a specific
piece of infrastructure (e.g. one road or rail line between two places), a corridor
usually denotes a large swathe of land through which multiple routes are possible
along numerous separate pieces of infrastructure with many different flows
organized and executed by different actors.
 04 POLICY AND PLANNING FOR INTERMODAL TRANSPORT

It is a public responsibility to ensure sufficient capacity

on all transport links to support a growing economy, but
the mix of public and private interests in freight
operations can result in considerable uncertainty
when it comes to investment in upgrades and capacity
enhancements, or connecting freight nodes to the
transport network.
 04 POLICY AND PLANNING FOR INTERMODAL TRANSPORT

SOME IMPORTANT DIFFERENCES:

While highways and motorways are generally
maintained by governments for both passenger and
freight use, rail and waterways can be either privately
or publicly owned.
 04 POLICY AND PLANNING FOR INTERMODAL TRANSPORT

THE MOST SUCCESSFUL CASE:

The United States is large enough to sustain
competition between different operators, each with their
own extensive infrastructure network serving most of
the same origins and destinations.
 04 POLICY AND PLANNING FOR INTERMODAL TRANSPORT

THE CASE OF EUROPE:

A smaller geographical region such as Europe would
find such a system difficult. In the current system
across Europe, infrastructure is owned by national
governments, while individual rail operators compete
with one another to run services, paying access
charges for their use of the track infrastructure.
 04 POLICY AND PLANNING FOR INTERMODAL TRANSPORT

THE CASE OF CHINA?

An interesting comparison is China, which is still
publicly controlled and divided into several vertically
integrated regions.
 04 POLICY AND PLANNING FOR INTERMODAL TRANSPORT

THE CASE OF THE CONTINENTAL PENINSULA?

The loading gauge (width and height) is restricted due
to bridges and tunnels, meaning that high cube
containers cannot be carried on some parts of the
network unless low wagons are used, adding expense
and inconvenience.
 04 POLICY AND PLANNING FOR INTERMODAL TRANSPORT

GREAT ISSUES?
The inland leg was taken by road, rail or inland
waterway, according to the economic and practical
imperatives of the shipper and transport provider. Rail
and water generally dominated long hauls because
they were cheaper.
 04 POLICY AND PLANNING FOR INTERMODAL TRANSPORT

GREAT ISSUES?
However, as emissions and congestion rose up the
government agenda in the 1990s, governments began
to see their role as more directly interventionist in order
to address the negative externalities of transport.
 04 POLICY AND PLANNING FOR INTERMODAL TRANSPORT

GREAT ISSUES?
In the late 1990s and early 2000s, policy documents
multiplied across Europe promising support for greener
transport measures to reduce dependence on road
transport, while also taking care politically not to be
seen to threaten the performance of the road haulage
industry which remains essential to a functioning
transport system.
 04 POLICY AND PLANNING FOR INTERMODAL TRANSPORT

OTHER REASONS?
Road user charging is another policy implemented in
some parts of Europe.
Better fleet management, use of Information and
Communications Technology (ICT), increased
backhauling, triangulation, reverse logistics, returning
packaging for recycling and other operational measures
(McKinnon, 2010; McKinnon and Edwards, 2012),
mean that emissions (if not congestion) can be reduced
quite substantially through improvements to road
operations rather than through modal shift.
 04 POLICY AND PLANNING FOR INTERMODAL TRANSPORT

OTHER REASONS?
A cornerstone of these efforts in Europe is the Trans-
European Network–Transport (TEN-T) program, which
identifies high-priority transport linkages across Europe;
member states can then bid for funding to invest in
upgrading these links. It covers both passenger and
freight and includes all modes (as well as ‘motorways
of the sea’). Its primary goal is not modal shift per se
but increased connectivity between member states.
 04 POLICY AND PLANNING FOR INTERMODAL TRANSPORT

OTHER REASONS?
The role of the US Federal Government with regard to
transport has been primarily related to safety and
licensing regulation, but it is increasingly taking a direct
role in intermodal infrastructure and operations.
For example, the Transportation Investment Generating
Economic Recovery (TIGER) program, as part of the
US stimulus package, provided $1.5 billion in federal
funding in 2009, to be bid for by consortia of public and
private partners across the country (Monios, 2014).
 04 POLICY AND PLANNING FOR INTERMODAL TRANSPORT

THE CASE OF DEVELOPING COUNTRIES?

These incentives are less common in developing
countries, which are focused more on developing their
logistics infrastructure to support business; therefore
interventionist transport policy has been pursued
primarily in developed countries. However,
supranational development agencies, such as the
United Nations Conference on Trade and Development
(UNCTAD) and the United Nations Economic and
Social Commission for Asia and the Pacific
(UNESCAP).
 04 POLICY AND PLANNING FOR INTERMODAL TRANSPORT

THE CASE OF DEVELOPING COUNTRIES?

Both organizations have promoted policy actions to
improve port-hinterland connections and logistics
performance in developing countries, especially for
landlocked or otherwise poorly-connected inland
regions (e.g. UNCTAD, 2004, 2013; UNESCAP, 2006,
2008).
Yet it is important to remember that in many cases
there are good business reasons why intermodal
transport is not flourishing at a certain location due to
cargo and route characteristics.
 04 POLICY AND PLANNING FOR INTERMODAL TRANSPORT

THE CASE OF DEVELOPING COUNTRIES?

The other important role for governments is the
regulation, administration and bureaucracy of trade
facilitation. Within a country, it will involve licenses to
operate transport vehicles, regulation of vehicle and
infrastructure quality and quantity and permission to
operate as a commercial transport provider.
 04 POLICY AND PLANNING FOR INTERMODAL TRANSPORT

THE CASE OF DEVELOPING COUNTRIES?

It will also cover planning permission to build a logistics
platform, provide connections to electricity and water
services, incorporating related issues, such as noise for
local residents and all the small issues of local
planning.
 04 POLICY AND PLANNING FOR INTERMODAL TRANSPORT

THE CASE OF DEVELOPING COUNTRIES?

At the international level, regulation and international
treaties cover the use of bills of lading and various
transport and insurance contracts that must be legally
approved as well as customs legislation in each
country.
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DR. LUIS ALFARO
DIRECTOR OF PORTS, LOGISTICS AND SCM
SOUTHSTAR MANAGEMENT INSTITUTE, DA NANG, VIETNAM
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