PowerPoint Presentation€¦ · PPT file · Web view · 2017-09-26Statement of Work. Can...
Transcript of PowerPoint Presentation€¦ · PPT file · Web view · 2017-09-26Statement of Work. Can...
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Linking Modal Shift to Inland Ports Bruce Lambert
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Statement of Work
• Can Container on Barge Succeed on Domestic Waterways
• Supply Chain considerations– Transportation costs– Connectivity
• Public Sector Benefits
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Terminal Operations
Transportation Utilities Workforce Development Business Climate Incentives
Cargo Density Business Clusters
Transportation services Intermediaries
Private Sector
Public Sector
Who Is Responsible for What
ShippersCarriers
National StateLocal
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The Shipper
• Demands low-cost, reliable service• Mode and geographically neutrality• Wants “just in time” services – does not want or
care about your “problems” (carrier or infrastructure)
• Firms outsourcing the “Headaches” of logistics• No one believes congestion will go away• Often ignore primarily “freight” infrastructure
beyond immediate facility
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Inventory Carrying Costs
• Domestic vs. International
• Truck – 50-60 mph• Train – 25 -30 mph• Water – 5-7 mph
• “Variability is the No. 1 killer of the Supply Chain” Kentall Trainer, Wal-Mart
• Transport Topics, August 14, 2017
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OriginTerminal
DestinationTerminal
IntermediateTerminal
Direct All-Truck Routes(Door-To-Door 50 MPH)*
30 MPH Line-Haul 30 MPH Line-Haul
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Customer
(12 HourDwell)
12 Hour Dwell
12 Hour Dwell
Intermodal Route
Customer
The Economics of Intermodal
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Mode Shift Paradigm
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Regional Intermodal Rail Terminal Network Has Uneven Overlapping Dray Truck Service Patterns
Source: IHS Global Insight TRANSEARCH Radius to 80% of total dray volume, red radii are top volume
Growth in use of intermodal rail will shift truck route use on the regional network
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Short-Haul Truck Freight-ShedsTrips <500 miles; All Commodities; Highway-Freight
Density in Tons
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Transportation Rate Costs/Discovery
• Rates are not costs• Market conditions change
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Modal Choice Matters
• CSX Service Changes– Coven & Co survey- nearly 50% shifted to NS,
76% to TruckTransport Topics Aug 14, 2017
• Could Waterways have been a solution?
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12Source: Texas Transportation Institute Center for Ports and Waterways
Dry Cargo Capacity
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What are the barriers to getting firms to consider modal diversion
• Risk• Existing carrier relationships• Inventory carrying cost• Customer responsiveness• Single point of contact• Size of shipment• Cost of failure• Ease of doing business
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Modal, Commodity Relationship
Inland Water
Pipeline
Air Service
Railroads
Trucking
Timeliness
Size of Shipment
Per Unit Costs
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Top Domestic Waterway Flows- ITTS Member States, FAF tons
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Tenn-Tom Waterways Economic Benefit
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The Maritime Sector’s Role in Freight Movement
Domestic Systems• Latent capacity• Environmental benefits
for cargo• Reliability issues on
channels, locks/dams• Scale = small,
fragmented
Coastal Systems• Pass through function• Development challenges• Environmental pressures
(domestic/ international)• Scale = large,
concentrated
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Alternatives for Action from AASHTO Water Bottomline Report
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What did SeaCore need for Tenn-Tom Service
• The cargo market near ports• Competitive trucking rates, including
overweight• Storage for containers, drayage equipment• Tax exemption for MS Firms
– Meet the Shipper’s Needs
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Literature Review
NCFRP No. 5 North American Marine HighwaysNCHRP Report 586 Rail Freight Solutions to Roadway Congestion - Final Report and GuidebookM-55 Illinois-Gulf Marine Highway Initiative
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PIANC Reports• Governance Organisation and Management of River
Ports• Analysis of Cost of Operating Vessels on Inland
Waterways• Container Transport with Inland Vessels• Economic Aspects of Inland Waterways• “Sustainable Ports” A Guide for Port Authorities• Values of Inland Waterways• Economic Implications of Inland Waterway
Development• Performance Measures• Previous Smart Rivers reports
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Three Questions…
1. Can Waterways work?– Has worked, does work, and may continue to do so
2. Can we avoid significant obstacles? – Get businesses to see water as a viable alternative– Provide the proper service– Support\fund startups– Govt. Programs
3. Can we outline first steps?– Get firms to the river before picking winners/losers– Understand supply chains– Continue to educate public and private sector– Manage expectations
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Thank youBruce LambertExecutive DirectorInstitute for Trade and Transportation [email protected]