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Prospects for the Caribbean as a Gateway to North America. Jean-Paul Rodrigue Associate Professor, Dept. of Global Studies & Geography, Hofstra University, New York, USA. (At least we’re not economists…). Academia: Don’t know much and don’t get no respect. Words I Promise not to Utter….
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Prospects for the Caribbean as a Gateway to North America Jean-Paul Rodrigue Associate Professor, Dept. of Global Studies & Geography, Hofstra University, New York, USA
(At least we’re not economists…) Academia: Don’t know much and don’t get no respect
Words I Promise not to Utter… • Bullshit • Crap • WTF • Bitch • Pot smoking • Confused • “Supercalifragilisticexpialidocious”
Main Export-Oriented Regions and Shipping Routes Servicing North America Pacific Asia / American East Coast Intermodal (60%) Western Canada (5%) All Water (40%) Pacific Northwest (20%) Via Suez (5%) Pacific Southwest (75%) Via Panama (95%) Mexico(?%)
CRB Index (CCI), Monthly Close, 1970-2011 Paradigm shift in input costs… Reaping the consequences of monetary policy.
West Texas Intermediate, Monthly Nominal Spot Oil Price (1970-2011) This is also going to propagate along supply chains. Steaming, slowly…
At the Crossroads… Which Value Proposition for the Caribbean? 1) Strong margins, but many not large enough to justify full dedicated services 3) East coast capacity issues 4) Last segment in import-based supply chains - + 2) Interlining between the America’s coastal systems
The North-American Container Port System and its Multi-Port Gateway Regions Puget Sound Northeatern Seaboard Gateway Entry Load change Clearance Southwestern Seaboard San Pedro Bay Gulf Coast Southern FLorida The Caribbean Gateway? (RIMS) Pacific Mexican Coast
Conditions suitable to the formation of a “Caribbean Gateway System”
The Insertion of Intermediate Hub Terminals Hub-and-Spoke Relay Interlining 15% of Transshipment Traffic 85% of Transshipment Traffic
Major ports and future terminal developments in non-EU Med ports: impact of a changing political landscape? Container throughput in million TEU, capacity extensions in million TEU Enfidha (Tunisia) Capacity: +1 (2011) +2.5 (period 2011-2015) +2 (period 2015-2030) Rades (Tunisia) Traffic: 0.3 (2007) Ambarli (Turkey) Traffic: 2.26 (2008) Djendjen (Algeria) Capacity: +2 (DP World) Bejaia (Algeria) Traffic: 0.15 (2008) Capacity: +2.5 (>2010) Algiers (Algeria) Traffic: 0.5 (2007) Capacity: +0.8 (2010) Mersin (Turkey) Beirut (Lebanon) Traffic: 0.95 (2008) Haifa (Israel) Traffic: 1.39 (2008) Transshipment Corridor Tanger Med APMT: + 1.5 mln TEU Eurogate: +1.5 mln TEU Tanger Med II APMT/Akwa: + 3 mln TEU (2012) PSA: +2 mln TEU (2012) Damietta (Egypt) Capacity: +4 (2012) Misurata (Libya) Initial plans cancelled? Port Said (Egypt) Traffic: 3.2 (2008) Capacity: +2.5 (2011) Source: Notteboom (2009)
Conventional Direct NorthAtlantic Central Atlantic South Atlantic / Gulf Transshipment Circum-Equatorial NorthAtlantic NorthAtlantic Central Atlantic Central Atlantic South Atlantic / Gulf South Atlantic / Gulf Caribbean Transshipment Triangle
The Caribbean Transshipment Market: Triangle or Corridor? Location (+) Depth (=) Land (=) Costs (+) Hinterland (-) Ownership (+)
The Big Port Squeeze: Largest Available Containership, 1970-2011 (in TEUs) E “Emma” Class(12,500 TEU) S “Sovereign” Class(8,000 TEU) R “Regina” Class(6,000 TEU) L “Lica” Class(3,400 TEU)
Pushing Atomization in the Hinterland and Massification in the Foreland Capacity Frequency Atomization Hinterland-Based Regionalization Different momentums Economies of scale Functional Integration PORT HINTERLAND FrequencyMitigation CapacityGap PORT FORELAND Massification Foreland-Based Regionalization Economies of scale
The Insertion of an Intermediate Hub as a Gateway Inland Terminal HINTERLAND GATEWAY FORELAND Main Shipping Lane INTERMEDIATE HUB (Caribbean)
A Taxonomy of Logistic Zones Port Port-Centric B Freight Village Corridor Intermodal Industrial Park Inland Port A Industrial Park A) Inland terminal B) Freight services
Port Centric Logistics Zones: The Search for Added Value Port Terminal On-Dock / Near Dock Rail FTZ / Manufacturing Container Depots Consolidation / deconsolidation Transloading Postponement
The “Terminalization” of Logistics Terminalization
Panama Canal Expansion and Supply Chain Differentiation: Pick Your Preference
Comparative Advantages in Supply Chain Preferences: A Complex Balancing Act Shipping Rate from Shanghai for a 40 Foot Container, Mid 2010 Vancouver Montreal $2,300 $2,110 $4,040 $3,950 Time New York $3,700 $1,830 Los Angeles Costs $2,620 $1,400 Houston $3,510 $2,560 Inbound rates: function of distance Outbound rates: function of trade imbalances Reliability (?) Inbound Outbound $1,300 $2,100
RIMS as an IT Triangle: Key Information Technology Drivers in Freight Distribution