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Last Mile Logistics and Port Regionalization in Global Freight Distribution. Jean-Paul Rodrigue Associate Professor, Dept. of Global Studies & Geography, Hofstra University, New York, USA. Last Mile Logistics and Port Regionalization in Global Freight Distribution.
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Last Mile Logistics and Port Regionalization in Global Freight Distribution Jean-Paul Rodrigue Associate Professor, Dept. of Global Studies & Geography, Hofstra University, New York, USA
Last Mile Logistics and Port Regionalization in Global Freight Distribution
“All-Miles” Logistics: Global Maritime Freight Transport System
Container Terminal Portfolio of the four Main Global Terminal Operators, 2010 Top ten terminal operators: 65% of the world’s total container handlings
Supply Chains: Alternating First and Last Miles Logistics Chain 1 LC 2 LC 3 Logistics Chain 4 Extraction Processing Fabrication Assembly Distribution Retailing TC 2 Transport Chain 1 TC 3 TC 4 TC 5
The “Terminalization” of Logistics Terminalization
The Complexities of Inland Logistics: The “Last Mile” in Freight Distribution Massification Atomization Frequency Capacity REGIONAL LOCAL HINTERLAND GLOBAL Shipping Network Segment Corridor 1 2 Customer “Last Mile” Inland Terminal Distribution Center Gateway Inventory at terminal Inventory in transit 1 2
Pushing Atomization in the Hinterland and Massification in the Foreland Atomization Hinterland-Based Regionalization Inland Terminal HINTERLAND Economies of scale Functional Integration GATEWAY FORELAND Massification Foreland-Based Regionalization Main Shipping Lane INTERMEDIATE HUB
The Governance Setting of Gateways and Corridors: Many Actors Supporting Functional Integration Maritime Freight Distribution Transport Actors Maritime shipping companies (Private). Waterways and navigation channels (Public). Terminal operators (Private). Port operations (Port Authority). Land ownership (Public and Private). Port System Gateways On-dock rail (Port Authority and terminal operators). Near-dock rail (Rail companies). Trucking and barging (Private). Roads and highways (Public). Rail lines (Rail companies; ownership or right-of-way). Road Rail Coastal / Fluvial Corridors and Hubs Hinterland (Inland Ports) Inland Freight Distribution
Asymmetries between Import and Export-Based Containerized Logistics Customer Distribution Center Inland Terminal Import-Based Gateway • Many Customers • Function of population density. • Geographical spread. • Incites transloading. • High priority (value, timeliness). Repositioning Supplier Export-Based • Few Suppliers • Function of resource density. • Geographical concentration. • Lower priority. • Depends on repositioning opportunities.
American Foreign Trade by Maritime Containers, 2009 (in TEUs)
Distribution based on two gateways Distribution based on RDCs Distribution based on local DCs Distribution based on tiered system
Governance Changes in Port Authorities: Competing over the Hinterland Conventional Port Authority Expanded Port Authority • Planning and management of port area. • Provision of infrastructures. Landlord Landlord Cluster Governance • Service Efficiency • Logistical Integration • Infrastructure and Growth Management • Terminal-City Integration Regulator Regulator • Planning framework. • Enforcement of rules and regulations. Operator Operator • Cargo handling. • Nautical services (pilotage, towage, dredging). Terminal Operator(s)
Port Elizabeth Intermodal Complex, New York N Maher Terminal Gate Dedicated Transloading Express Rail Elizabeth Empties ChassisPool (Maher) APM Terminal ChassisPool Gate Transloading Retail Empties ChassisPool
Main Advantages of Co-location: Multiplying Factors for the Last Mile
Conclusion: Transshipment Hubs at the Forefront of Last Mile Logistics