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Gateways, Corridors and Global Freight Distribution: Transpacific Issues

Gateways, Corridors and Global Freight Distribution: Transpacific Issues. Jean-Paul Rodrigue Associate Professor, Dept. of Economics & Geography, Hofstra University, New York, USA Email: ecojpr@hofstra.edu Paper available at: http://people.hofstra.edu/faculty/Jean-paul_Rodrigue.

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Gateways, Corridors and Global Freight Distribution: Transpacific Issues

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  1. Gateways, Corridors and Global Freight Distribution: Transpacific Issues Jean-Paul RodrigueAssociate Professor, Dept. of Economics & Geography, Hofstra University, New York, USA Email: ecojpr@hofstra.edu Paper available at: http://people.hofstra.edu/faculty/Jean-paul_Rodrigue

  2. Globalization and the Transpacific • Globalization; a clustered and spatially diffused process • In terms of production and consumption. • Distribution is reconciling spatially diverse demands for raw materials, parts and finished goods. • The backbone of globalization • Networks are established to support distribution. • Gateways are regulating the flows within networks. • As international trade increases, gateways have become strategic locations.

  3. Gateways and Hubs as Central and Intermediate Locations • Gateways & hubs • Nodes offering an accessibility to a large system of circulation. • Obligatory (semi) points of passage. • Convergence of transport corridors. • Centrality and intermediacy. • Gateways • Favorable physical location. • Intermodal and stable in time. • Hubs • Transmodal and subject to change. • Commercial decisions. • Delays vs. frequency of services. Intermodal Gateway Transmodal Hub

  4. Corridors and Regional Development C B A Order Gateway Specialization and interdependency High Low High Low Flows

  5. Main North American Trade Corridors and Metropolitan Freight Centers

  6. Interdependencies and Imbalances • Macro-economic and physical imbalances • Globalization has made the economies of the Pacific Rim more integrated. • These interdependencies however come with acute imbalances. • The core of these imbalances is at start macro-economic: • Comparative advantages. • Foreign direct investments. • Debt and asset inflation. • Macro-economic imbalances have an outcome in the physical world of freight flows: • International trade. • Container flows. • Transportation rates. • Structure of long distance transport services.

  7. The “Perpetual Motion Machine”: The Dynamics of the World’s Most Significant Trade Relationship USD $ for goods Interest Rates Unemployment Goods Borrowing Investment Bonds (IOUs) Asset Inflation Debt Reserves $ for bonds United States China USD

  8. Share of Global Manufacturing Output, 1993-2003

  9. World’s 10 Largest Exporters and Importers, 2005

  10. Containerized Cargo Flows along Major Trade Routes, 1995-2005 (in millions of TEUs)

  11. Maritime Freight Rates (USD per TEU), 1993-2006

  12. Two Major Transpacific Pendulum Routes Serviced by OOCL, 2006 (The Wal-Mart Express)

  13. Largest American Importers of Asian Goods Through Maritime Container Transport, 2004 (in TEUs)

  14. Tokaido Yellow SeaRim Prince Rupert Sunan Delta Taiwan / Fujian Pearl River Delta Puget Sound San Francisco Bay San Pedro Bay Singapore Ensenada Container Traffic at Major Transpacific Container Ports: Mirror Images?

  15. SEZ Corridor Gateways and Hinterland Effect Pacific Asia North American West Coast Efficient Inland Freight Distribution Inefficient Inland Freight Distribution

  16. Containers Handled by the Port of Hong Kong, 1995-2005 (in TEU)

  17. Containers Handled by the Port of Los Angeles, 1995-2005 (in TEU)

  18. Containers Handled by the Port of Vancouver, 1997-2005 (in TEU)

  19. Types and Functions of Rail Freight Corridors

  20. Western North America: Value of US Rail Imports by Port of Entry, 2002

  21. Western Canada: Taking Advantage of Intermediacy • Prince Rupert: A new gateway? • Congested West Coast Ports; in search of alternatives. • CN Prince Rupert strategy: • Focus on non-stop intermodal services to Chicago. • Time component as a major comparative advantage (107 hours). • The decision to use the gateway will be made by maritime shipping lines. • The quality and efficiency of inland distribution will be a factor behind the number and frequency of port calls. • Many logistical opportunities in between (transmodal). • What about the “warm chain”? • North Pacific Rim Trade Corridor • A potential alternative?

  22. Conclusion: Pacific Asia and 21st Century North American Freight Distribution • Transpacific Trade • Emergence of global production networks. • Substantial rebalancing of the global economy. • Gateways, corridors and integrated transport systems • Imbalanced freight flows; the gateways’ dilemma: • Disequilibrium in the division of labor, trade, production and consumption. • Pressures to manage disequilibrium (e.g. empties). • Intermodal and transmodal operations: • Reconcile the scales (from the “Agile Port” to the Landbridge). • Logistical friction: • A new modal balance (time, cost and efficiency). • Competitive advantages derived from whole transport chains. • The matter is mainly in the hands of private firms: • Decide the allocation of assets and capital.

  23. Circum Hemispheric Dreams

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