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The Geography of Transport Systems Chapter 2 – Transportation Systems and Networks Concepts Copyright © 1999-2006, Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University, Hempstead, NY, 11549 USA. [email protected] You may use the figures within for educational purposes only. No modification or redistribution permitted. For more information: http://people.hofstra.edu/geotrans

Concept 1

Transportation and Commercial Geography

Commercialization of Transportation

Global

l

ntia e t o P t Marke

Market Size

Integrated demand

Local

Standardization and integration

Expansion and interconnection Introduction (isolation / proprietary)

Time

Number of providers

Commercial and Transport Geography

Commercial Geography Transactions Movements Transport Geography

Global GDP, 2002

32.3%

34.2%

UnitedStates Japan Germany Other G7 Restof theworld

15.1%

12.3% 6.1%

Share of Global GDP Growth, 19952002

25 20 15 10 5 0 China

US

Other Asia

EU

Japan

Restof the World

World GDP per Capita, 2000 ($US)

Not Available Less than $2,000 $2,000 to $5,000 $5,000 to $12,000 $12,000 to $20,000 More than $20,000

Increases in U.S. Commercial Freight Shipments and Related Growth Factors, 1993–2002 Retail goods sales Wholesale goods sales Value of freight shipments Gross Domestic Product Manufacturer's goods sales Ton-miles of freight Tons of freight Employment Resident population 0

10

20

30

40

50

60

70

World Trade Flows, 2001 (billion $US)

255

Western Europe (1,677) 188

195

252 312

North America 376 (391)

207

333 205 287

Asia / Pacific (722)

96

Rest of the World (285)

174

Share of Asia in World Trade, 19802003

28 26 24

Exports Imports

22 20 18 16 14 12 10 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002

Value of U.S. Merchandise Trade with Canada and Mexico: 1994-2000

2000 1800 1600 1400 1200

Total TradewithCanada Total TradewithMexico Total U.S. International Trade

1000 800 600 400 200 0 1994

1995

1996

1997

1998

1999

2000

Global Inflows of Foreign Direct Investments, 1990-2003 (in millions of $US) 1,600,000 1,400,000 1,200,000

Developing countries Developed countries

1,000,000 800,000 600,000 400,000 200,000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Worldwide Mergers and Acquisitions, 1980-2001 4,000

45% All Mergers Cross Border Mergers %Cross Border

3,500

35% 30%

2,500

25%

2,000

20%

1,500

15%

1,000

10%

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

1986

1985

1984

0% 1983

0 1982

5% 1981

500 1980

Billions of 2000$US

3,000

40%

Transportation and the Supply and Distribution Chain

Supplier

Supply Transport

Customer

Activity Distribution Transport

Trends in International Standards by Technical Fields, 1980-1990 2500 1985 1990

2000 1500 1000 500 0 Mechanical engineering

Basic chemicals

Non-metallic materials

Ores andmetals

Information processing, graphics and photography

Agriculture

Others

0

500

Precision instruments

Other transportation equipments

Motor vehicles

Communication and electronics equipment

Electrical machinery

General machinery

Iron and steel

Chemicals

Value of Japanese Technology Imports with North America (in millions $US)

600

1986 1989

400

300

200

100

0

350

300

250

Precision instruments

Other transportation equipments

Motor vehicles

Communication and electronics equipment

Electrical machinery

General machinery

Iron and steel

Chemicals

Value of Japanese Technology Exports with North America (in millions $US) 1986 1989

200

150

100

50

Consumer Expenditures in the US by Age Group, 1988 100% 90% 80% 70%

Automobile related Savings Living related Education-related Medical

60% 50% 40% 30% 20% 10% 0% Under 24 years old

25-34

35-44

45-54

55-64

Over 65 years old

Consumer Expenditures in the Japan by Age Group, 1990 100% 90% 80% 70% 60% 50%

Automobile related Savings Living related Education-related Medical

40% 30% 20% 10% 0% Under 24 years old

25-34

35-44

45-54

55-64

Over 65 years old

Concept 2

Transport Costs

Components of Transport Cost

Transaction Costs

A

Friction of Distance

Shipment

B

Fixed and Operating Transport Costs

Mode

Fixed/Capital Costs

Operating Costs

Rail or Highway

Land, Construction, Rolling Stock

Maintenance, Labor, Fuel

Pipeline

Land, Construction

Maintenance, Energy

Air

Land, Field & Terminal Construction, Aircraft

Maintenance, Fuel, Labor

Maritime

Land for Port Terminals, Cargo Handling Equipment, Ships

Maintenance, Labor, Fuel

Conditions Affecting Transport Costs Condition

Factors

Examples

Geography

Distance, physiography, accessibility Packaging, weight, perishable

Shipping between France and England vs. shipping between France and the Netherlands

Economies of scale

Shipment size

Trade imbalance Infrastructure

Empty travel

A 747 compared to 737 (passengers) A ULCCbetween compared to aand VLCC Trade China the (freight) United States

Type of product

Mode Competition and regulation

Shipping coal Shipping flowers or wine

Capacity, limitations, operational Capacity, conditions limitations,

The Interstate

operational Tariffs, safety, conditions ownership

The European Union, The Jones Act

A bus compared to a car

Costs

Different Friction of Distance Functions 1

2

3

4

Zone Change Fixed Costs Distance

Transshipment Costs

Different Components of Transport Time Ti me

Transport Time

Timing

Distance Punctuality

Frequency

Average Length of Haul by Major Commodity Group, 2002 Gravel andcrushed stone Gasolineand aviation turbinefuel Fuel oils Wasteand scrap Alcoholic beverages Fertilizers Basic chemicals Woodproducts Coal Cereal grains Pharmaceutical products Machinery Plastics and rubber Electronic, electrical, and officeequipment Textiles, leather, and products 0

100

200

300

400

500

600

700

Freight Transportation Service Spectrum High Air Cargo $1.5 / lbs

Low TruckRail Intermodal Rail Carload Rail UnitWater 5 - 10¢ / lbs3¢ / lbs

Fastest, most reliable and most visible. Lowest weight, highest value and most timesensitive cargo.

1¢ / lbs0.5 - 1¢ / lbs 0.5¢ / lbs

Fast, reliable and visible. Range of weight and value. Rail intermodal competitive with truck over longer distances.

Slower, less reliable and less visible. Highest weight, lowest value and lest timesensitive cargo.

Shipment Size and Transport Costs

10000000 1000000

Shipment Size (lbs) Transport Charges ($/ton)

100000 10000 1000 100 10 1 Parcel

LTL Truck Truckload

Railcar load

Multirailcar

Unit train Barge load

Top 10 Commodity Groups Ranked by Value Per Ton, United States, 2002 Pharmaceutical products Electronic, electrical, and officeequipment Transportation equipment, n.e.c. Precision instruments and apparatus Tobacco products Textiles, leather, and products Machinery Motorized and other vehicles and parts Miscellaneous manufactured products Furniture, mattresses and lighting products CFS total

0

4,000

8,000

12,000

16,000

20,000

Transport Costs by Industry Type, 1999

Finance, Insurance&Real Estate Services Wholesale&Retail Communications &Utilities Manufacturing Construction Mining Agriculture, Forestry &Fishing

0

1

2

3

4

5

6

Transport costs per output (%)

7

8

9

FOB and CIF Transport Costs

Costs

Freight-on-Board

Cost-Insurance-Freight

}

Production Costs Distance

Estimates of Total Imports Freight Costs Relative to Imports (CIF), 1997

14 12 10 8 6 4 2 0 Total

Developed Developing

Africa

Asia

Europe

South America

Oceania

Zonal Freight Rates

Real transport cost

Costs

D1 D2

I

II

Flat zonal rate

III Distance

IV

Fixed and Variable Costs and Service in the Transportation System Characteris Fixed tic Infrastructure

Variable Costs

Examples

Highways, rail tracks, airports, ports

Trucks, railcars, planes, ships

Ownership

Mostly public

Mostly private

Lifespan

Very long (decades)

Rate of change Impact on service Competition

Slow

Short to average (5 to 20 years) Rapid redeployment

Shapes accessibility

Shapes level of service

Level the playing field

Source of comparative advantages

Averageannual miles traveledper vehicle

Fuel Costs Versus Annual Vehicle Mileage, United States, 1960-2000

13,000 12,500 12,000 11,500

R2 =0.8825

11,000 10,500 10,000 9,500 9,000 $0.06

$0.08

$0.10

$0.12

$0.14

$0.16

AverageCost Per Vehicle-Mile(2001dollars)

$0.18

$0.20

Concept 3

The Spatial Dimension of Transportation Networks

Types of Networks (under construction) Physical / structural Relational Distribution

Network Structures

Centralized

Decentralized

Distributed

Transport Structures

Node

Feeder

Link

Flow

Hub / Interface

Corridor Distribution Warehousing Financial / Insurance Retail / Wholesale

Centrifugal and Centripetal Networks Centrifugal

Centripetal

Point-to-Point and Hub-and-Spoke Networks Point-to-Point

Hub-and-Spoke

Hub

Detour Level in a Hub-and-Spoke Network A

1

D B

C

Impacts of Integration Processes on Networks and Flows Before Integration

Flows

Network

International border

After Integration

Cost, Revenue and Level of Network Coverage A

4

5 3

7

Cost: 10 10Revenue: 15 Benefit: 5

B

Cost: 12 Revenue: 18 Benefit: 6

C

Cost: 14 Revenue: 25 Benefit: 11

D

Cost: 19 Revenue: 29 Benefit: 10

Transport Rates and Network Structure

Low

Rate Average High

Topology of a Network

Unidirectional link Bi-directional link

Entry and exit

Link

Node

Exit Entry

Types of Network Topology Mesh

Linear

Hub-and-Spoke

Tree

Network Geometry and Number of Links For each node to be linked to anotherFor node all the nodes to be linked together Even number of nodesOdd number of nodes

Number of possible combinations For each node to be linked to all other nodes

Topology and Network Connectivity

A

C

B

D

B or C D Geographic Barrier

Network Length

Fully Connected Network

Minimum Network

Average Path Length

A

A Typology of Transportation Networks - I Relative location

Abstraction level

Concrete

Abstract

Orientation and extent

Number of edges and nodes 1 7

6

2

5

4 3 4

3

5 2

1

6

A Typology of Transportation Networks - II Modes and Terminals

Distance, road type and control of the vehicle

Port Maritime Rail

Railyard Road

Highway 100

50

125 km

Depot

Type of traffic

Continuous Divided

Secondary road

90 km

Volume and direction

t/hr 3500

8000

t/hr

A Typology of Transportation Networks - III Type of correspondence

Load and capacity

Hierarchical Non- hierarchical

0.3 0.9

0.7 0.5

0.7

Change (dynamics)

Pattern Linear Random Mesh

Transport Networks and Space

Transport Network

Space

Accessibility

Mode of Territorial Occupation by Transport Networks Overlap

Rail

Air corridor

Road ridor r o c ime t i r a M

Clearly defined

Vaguely defined

e”

rvic e s “No

Cellular coverage

Without definition

Network Strategies to Service a Set of Locations

A

B

C

D

E

F

Absolute and Relative Distance in a Network

10 km

30 minutes

Networks and Spatial Continuity A

B

C

Concept 4

Transportation Supply and Demand

Transport Supply and Demand

Aij i

Modal Supply Intermodal Supply

j

Tij i

Realized Demand Potential Demand

j

Ton-Miles of Freight Transported within the United States, 1975-2000 (millions) 4,000,000 3,500,000 3,000,000

Air Water Pilelines Truck Rail

2,500,000 2,000,000 1,500,000 1,000,000 500,000 0

1975

1980

1985

1990

1995

2000

Ton-Miles of Transported Freight, United States, 1960-2003 (millions) 16,000

1,400,000 1,200,000

Intercity truck Rail Coastal Air

14,000 12,000 10,000

1,000,000

8,000

800,000

6,000

600,000 400,000

4,000

200,000

2,000

0

1960

0

1965

1970

1975

1980

1985

1990

1995

2000

2005

Air

1,600,000

Passenger-Miles Transported within the United States, 1975-2004 (millions) 4,000,000 3,500,000 3,000,000 Rail Urban Transit Bus Car Air

2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 1975

1980

1985

1990

1995

2000

2004

Quantity of Passengers or Freight

Growth Factors in Transport Demand

Passengers Freight Growth in production and consumptio n Income growth

s m k n-

o r e ng

o t r

e

s as

P

Industrial relocation Economic specializationKM Suburbanization

Average Distance

Factors behind Freight Transport Demand Economy Industrial location Spatial Structure International Agreements JIT practices and warehousing Strategic alliances Packaging and recycling Regulation and deregulation Fuel costs, taxes and subsidies Infrastructure and congestion Safety and environmental policies Technology

General derived demand impact. Linked with the GDP. Function of the structure of the economy in terms of resources, goods, and Effect on ton-kms and on modal choice. services. Effect on ton-kms. Function of international trade structure. Containerization and intermodal transportation. Both concerning trade and transportation. Economic specialization. Increased transborder traffic. Simplified custom procedures. Decreased inventories. More shipments. Smaller line hauls. Shift to faster and more reliable modes. Use of 3rd party logistics providers. Between carriers, shippers and often producers and retailers. Lower distribution costs. Increased transportability of products. Lower freight density. Reverse distribution. Increased competition, level of service and lower costs. Growth of intermodal transportation. Large and volatile cost components, specifically for energy intensive modes. Preferred mode or carrier. Efficiency, operating costs and reliability. Operating speed, conditions and costs. Capacity and weight limits. Containerization, double-stacking, automation and robotics, handling and interchange systems and automated terminals. Information systems (IDE). Lower costs, increased efficiency and reliability and new opportunities.

Share of Total Domestic Freight Activity by Mode, G7 Countries, 1996

%of total domestic metric ton-km

100% 80%

Road Rail Oil Pipeline Water Air

60% 40% 20% 0% Canada

France Germany

Italy

Japan

United United Kingdom States

Share of Total Domestic Passenger Activity by Mode, G7 Countries, 1996

%of total domestic passenger-km

100% 80% 60%

Rail Road Air

40% 20% 0% Canada

France

Germany

Italy

J apan

United Kingdom

United States

Major Supply Variables for Transportation Modes Rail

•Lanes •Tracks •Width •Grade •Speed limit •Parking

Air •Corridors

Maritime •Canals •Locks

VehiclesTerminals Routes

Road

•Yards •Runways •Docks •Transshipment•Dockways •Transshipment

•Speed •Speed •Speed •Speed •Passengers •Passengers •Passengers •Tonnage •Tonnage •Tonnage •Tonnage

Atmospheric Conditions

Impacts of Modal Competition and Intermodal Capacity on Transport Supply C

1

C = T(A) + T(B)

Traffic

T(A) Modal Competition Mode A

Mode B T(B) Assignment

2

Capacity

C(A) C(B) T(AB) = C(B)

Terminal A

Intermodal Capacity

Terminal B

Classic Transport Demand / Supply Function

Cost Demand D

Elasticity =

T 2 − T1 C 2 − C1

Supply

S1

S2

Equilibrium

C1 C2 T1

T2

Traffic

Transport Elasticity by Activity

100%

Emergency Commuting Major Purchase

Traffic

Special Event

Social Activities

0%

Recreation

Cost

Transport Supply, Demand and Travel Time

Traffic

Transport supply (A)

Transport Demand (T)

Travel time

Morning peak

Afternoon peak

T>A

T
Time of the Day

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