The Thruport Concept: Reconciling Time and Flows in Freight Distribution

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The Thruport Concept Reconciling Time and Flows
in Freight Distribution

• Jean-Paul Rodrigue, Hofstra University, New York
• Theres no business like flow business

Email ecojpr_at_hofstra.edu Paper available
at http//people.hofstra.edu/faculty/Jean-paul_Ro
drigue
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Integrated Transport Systems From Fragmentation
to Coordination
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Value Per Ton of U.S. Freight Shipments by
Transportation Mode, 2002
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Integrated Transport Systems

• Resurgence in rail transportation (competitive
  advantages)
• Substantial growth in international trade
• Particularly imports from Asia (China).
• Interface between global supply chains and
  national distribution national gateways.
• Growth in long distance shipments at the
  international and national levels.
• Rail productivity
• Decrease in rail freight rates (35 decline
  between 1980 and 2000).
• Increase in trucking transport costs (wages,
  fuel, insurance, congestion).
• Capacity constraints at gateways
• Containerization growing rapidly.
• Large volumes at gateways create capacity
  constraints.
• Intermodal rail offers a shipping alternative to
  the capacity constraints of trucking.

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Ton-Miles of Transported Freight, United States,
1960-2003 (millions)
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Integrated Transport Systems

• Transshipments
• Between (intermodal) modes and within (intramodal
  / trans-modal) modes.
• Benefits accrued at the terminals.
• ITS expanded the demands on intermodal and
  trans-modal transportation alike.
• Trans-modal component of growing importance.
• The geography of transshipments
• Connect different parts of the transport system
  (ITS).
• Enabling different freight markets and forwarders
  to better interact.
• Conventionally at load break locations gateways.
• Now at logistically suitable locations (plus
  added value).

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Time Dependant Transport Transshipment Flows
Intermodal Terminal
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Intramodal (Trans-modal) Transportation

• Why trans-modal shipments take place?
• Market fragmentation.
• Supply chain fragmentation.
• Ownership fragmentation.
• Requirements for a high throughput trans-modal
  facility
• Thruport concept
• Coined by an intermodal equipment manufacturer
  (Mi-Jack).
• Seamless transfer of freight.
• Reduce handling and the number of container
  movements.
• Analogy with air transport hubs
• Consolidation and redistribution.
• Passengers reposition themselves.

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Intramodal Rail Container Transshipment Sequence
Before and After Thruport
Rail terminal
Rail terminal
Inbound Storage Yard
Outbound Storage Yard
Cross-town
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1
4
6
2
5
3
Rail Operator A (inbound)
Rail Operator B (outbound)
Thruport
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Trans-modal Transportation and Market
Fragmentation

• Market fragmentation
• Mainly retail / consumption related.
• National distribution and global production.
• Single origin through a gateway and several
  destinations (DC).
• Thruport reconcile the high volume requirements
  of markets with the time sensitive requirements
  of distribution.

Markets
Thruport
Gateway
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Trans-modal Transportation and Supply Chain
Fragmentation

• Supply Chain fragmentation
• Contemporary supply chains involve a complex
  sequence of trips.
• Specialization and comparative advantages.
• Different stages (parts, manufacturing,
  distribution) each of which could use a
  Thruport.
• Potential Thruport impact on the locational
  behavior of production and distribution
  activities.

Thruport
Parts raw materials
Distribution
Customers
Manufacturing
Supply Chain
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Trans-modal Transportation and Ownership
Fragmentation

• Ownership fragmentation
• Rail companies have their facilities and
  customers.
• They have their own markets along the segments
  they control.
• Interchange is the major problem.
• The Thruport creates multiplying effects.
• The distribution potential of each operator is
  expanded.
• Network alliances like in the airline industry
  (constrained by the spatial fixity of rail
  networks).

Gateway
Thruport
D
E
C
B
A
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12.4 M TEU
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The Thruport Concept Weve come a long way
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Mi-Jack Intermodal Translift
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The Thruport Concept

• Characteristics
• Neutral facility (preferably)
• Joint venture (rail companies, terminal
  operators).
• A local consortium?
• Two rail carriers (in theory)
• Higher number to reinforce economies of scale and
  scope.
• 4 or 5 rail carriers optimal.
• Location and setting
• Linear structure of about 2.25 miles (3.6 km) in
  length.
• Minimal interface with trucking (could be a road
  / rail facility).
• A Thruport does not necessarily require to be
  located nearby a metropolitan area.
• Performance
• No container truck chassis and hostlers required.
• About 164 containers per hour (3,936 per day).

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Mi-Jack Stack-Packer (Thruport Terminal)
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Potential Thruport Terminal Configuration
A
D
B
Thruport Consortium
C
2.25 miles
E
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The Thruport Concept

• Thruport Reconciling time and flows
• Virtuous circle of potential positive
  reinforcement.
• Time improvements enable a modal shift in
  commodity chains.
• Shippers are looking for reliability
• Transit times.
• Frequency and timing.
• Tracking.
• Rail flows servicing just-in-time strategies
• Time improvements from 5 days to 3 days.
• Time sensitive commodity chains.
• Some temperature sensitive products.
• Improve cash flow (faster deliveries, faster
  receivables).

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Conclusion Towards a 100 per barrel Logistics?

• The Thruport concept and Inland Freight
  Distribution
• Containerization insured a global freight
  distribution market.
• Rail bound to play a greater role a continental
  ITS strategy.
• Reduce congestion for all modes by exploiting
  their comparative advantages.
• 100 per barrel logistics may be upon us.
• Thruport could mitigate energy cost increases.
• Unique opportunity to build more efficient
  intermodal relationships between rail and truck
  transport systems.

In the 20th Century, it was said, distance was
conquered. In the 21st Century, distance shall
have her revenge, and the world will become a
much bigger place.