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The Geography of Transport Systems

Chapter 2 – Transportation Systems


and Networks
Concepts
Copyright © 1999-2006, Jean-Paul Rodrigue, Dept.
of Economics & Geography, Hofstra University,
Hempstead, NY, 11549 USA.
Jean-paul.Rodrigue@hofstra.edu
You may use the figures within for educational
purposes only. No modification or redistribution
permitted.
For more information:
http://people.hofstra.edu/geotrans
Concept 1

Transportation and Commercial


Geography
Commercialization of Transportation

Global e ntial
t Po t
Marke
Integrated demand
Market Size

Standardization and integration

Expansion and interconnection


Number of providers

Introduction (isolation / proprietary)


Local
Time
Commercial and Transport
Geography

Commercial Geography

Transactions

Movements

Transport Geography
Global GDP, 2002

32.3%
34.2%
UnitedStates
Japan
Germany
Other G7
Restof theworld

12.3%
15.1%
6.1%
Share of Global GDP Growth, 1995-
2002

25

20

15

10

0
China US Other Asia EU Japan Restof the
World
World GDP per Capita, 2000 ($US)

Not Available
Less than $2,000
$2,000 to $5,000
$5,000 to $12,000
$12,000 to $20,000
More than $20,000
Increases in U.S. Commercial Freight
Shipments and
Related Growth Factors, 1993–2002

Retail goods sales


Wholesale goods sales
Value of freight shipments
Gross Domestic Product

Manufacturer's goods sales


Ton-miles of freight
Tons of freight
Employment
Resident population

0 10 20 30 40 50 60 70
World Trade Flows, 2001 (billion
$US)

255
Western Europe 195
188
(1,677)
252
312
North America 376 Asia / Pacific
(391) (722)
207
333
205 96
Rest of the
287 World 174
(285)
Share of Asia in World Trade, 1980-
2003

28
26 Exports
Imports
24
22
20
18
16
14
12
10
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002
Value of U.S. Merchandise Trade with
Canada and Mexico: 1994-2000

2000
1800
1600
1400
1200
Total TradewithCanada
1000 Total TradewithMexico
800 Total U.S. International Trade
600
400
200
0
1994 1995 1996 1997 1998 1999 2000
Global Inflows of Foreign Direct
Investments, 1990-2003 (in millions of
$US)

1,600,000

1,400,000 Developing countries


Developed countries
1,200,000

1,000,000

800,000

600,000

400,000

200,000

0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Worldwide Mergers and Acquisitions,
1980-2001

4,000 45%
All Mergers
3,500 40%
Cross Border Mergers
%Cross Border 35%
3,000
Billions of 2000$US

30%
2,500
25%
2,000
20%
1,500
15%
1,000
10%
500 5%

0 0%
1980
1981
1982
1983
1984
1985
1986
1987

1991
1992
1993
1994

1997
1998
1999
2000
2001
1988
1989
1990

1995
1996
Transportation and the Supply and
Distribution Chain

Supplier Customer

Supply Activity Distribution

Transport Transport
Trends in International Standards by
Technical Fields, 1980-1990

2500
1985
2000 1990

1500

1000

500

0
Mechanical Basic chemicals Non-metallic Ores andmetals Information Agriculture Others
engineering materials processing,
graphics and
photography
0
100
200
300
400
500
600
Chemicals

Iron and steel

General
machinery

Electrical
machinery

Communication
and electronics
equipment
millions $US)

Motor vehicles

Other
transportation
equipments
Value of Japanese Technology
Imports with North America (in

Precision
instruments
1989
1986
0
50
100
150
200
250
300
350
Chemicals

Iron and steel

General
machinery

Electrical
machinery

Communication
and electronics
equipment
millions $US)

Motor vehicles

Other
transportation
equipments
Value of Japanese Technology
Exports with North America (in

Precision
instruments
1989
1986
Consumer Expenditures in the US by
Age Group, 1988

100%
90%
80%
70% Automobile related
60% Savings
50% Living related
40% Education-related
30% Medical
20%
10%
0%
Under 24 25-34 35-44 45-54 55-64 Over 65
years old years old
Consumer Expenditures in the Japan
by Age Group, 1990

100%
90%
80%
70% Automobile related
60% Savings
50% Living related
40% Education-related
30% Medical

20%
10%
0%
Under 24 25-34 35-44 45-54 55-64 Over 65
years old years old
Concept 2

Transport Costs
Components of Transport Cost

Transaction Costs

Friction of Distance
A B

Shipment
Fixed and Operating Transport Costs

Mode Fixed/Capital Costs Operating Costs

Rail or Land, Construction, Maintenance, Labor,


Highway Rolling Stock Fuel
Pipeline Land, Construction Maintenance, Energy

Air Land, Field & Terminal Maintenance, Fuel,


Construction, Aircraft Labor
Maritime Land for Port Terminals, Maintenance, Labor,
Cargo Handling Fuel
Equipment, Ships
Conditions Affecting Transport Costs

Condition Factors Examples


Geography Distance, Shipping between France and
physiography, England vs. shipping between
accessibility France and the Netherlands
Type of Packaging, weight, Shipping coal
product perishable Shipping flowers or wine
Economies of Shipment size A 747 compared to 737
scale (passengers)
A ULCCbetween
Trade compared to aand
China VLCC
the
Trade Empty travel
(freight)
United States
imbalance
Infrastructure Capacity, The Interstate
limitations,
Mode operational
Capacity, A bus compared to a car
conditions
limitations,
Competition operational
Tariffs, safety, The European Union, The Jones
and regulation conditions
ownership Act
Different Friction of Distance
Functions

1 2

Zone Change
Costs

Fixed Costs

Distance

3 4
Transshipment Costs
Different Components of Transport
Time
Ti Transport Time Timing
me

Distance

Punctuality Frequency
Average Length of Haul by Major
Commodity Group, 2002
Gravel andcrushed stone

Gasolineand aviation turbinefuel

Fuel oils

Wasteand scrap

Alcoholic beverages

Fertilizers

Basic chemicals

Woodproducts

Coal

Cereal grains

Pharmaceutical products

Machinery

Plastics and rubber

Electronic, electrical, and officeequipment

Textiles, leather, and products

0 100 200 300 400 500 600 700


Freight Transportation Service
Spectrum

High Low

Air Cargo TruckRail Intermodal


Rail Carload Rail UnitWater

$1.5 / lbs 5 - 10¢ / lbs3¢ / lbs 1¢ / lbs0.5 - 1¢ / lbs


0.5¢ / lbs
Fastest, most Fast, reliable Slower, less
reliable and and visible. reliable and less
most visible. Range of weight visible.
Lowest weight, and value. Highest weight,
highest value Rail intermodal lowest value
and most time- competitive with and lest time-
sensitive cargo. truck over sensitive cargo.
longer
distances.
Shipment Size and Transport Costs

10000000
Shipment Size (lbs)
1000000
Transport Charges ($/ton)
100000

10000

1000

100

10

1
Parcel LTL Truck Truckload Railcar Multi- Unit train Barge load
load railcar
Top 10 Commodity Groups Ranked by
Value Per Ton, United States, 2002

Pharmaceutical products

Electronic, electrical, and officeequipment

Transportation equipment, n.e.c.

Precision instruments and apparatus

Tobacco products

Textiles, leather, and products

Machinery

Motorized and other vehicles and parts

Miscellaneous manufactured products

Furniture, mattresses and lighting products

CFS total

0 4,000 8,000 12,000 16,000 20,000


Transport Costs by Industry Type,
1999

Finance, Insurance&Real Estate

Services

Wholesale&Retail

Communications &Utilities

Manufacturing

Construction

Mining

Agriculture, Forestry &Fishing

0 1 2 3 4 5 6 7 8 9
Transport costs per output (%)
FOB and CIF Transport Costs

Freight-on-Board
Costs

Cost-Insurance-Freight

}
Production Costs

Distance
Estimates of Total Imports Freight Costs
Relative to Imports (CIF), 1997

14

12

10

0
Total Developed Developing Africa Asia Europe South Oceania
America
Zonal Freight Rates

Real transport cost

D1
Flat zonal rate
Costs

D2

I II III IV
Distance
Fixed and Variable Costs and Service in
the Transportation System

Characteris Fixed Variable Costs


tic Infrastructure
Examples Highways, rail tracks, Trucks, railcars, planes,
airports, ports ships
Ownership Mostly public Mostly private

Lifespan Very long (decades) Short to average (5 to


20 years)
Rate of Slow Rapid redeployment
change
Impact on Shapes accessibility Shapes level of service
service
Competition Level the playing field Source of comparative
advantages
Fuel Costs Versus Annual Vehicle Mileage,
United States, 1960-2000

13,000
Averageannual miles traveledper vehicle

12,500

12,000

11,500
R2 =0.8825
11,000

10,500

10,000

9,500

9,000
$0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18 $0.20
AverageCost Per Vehicle-Mile(2001dollars)
Concept 3

The Spatial Dimension of


Transportation Networks
Types of Networks (under
construction)
Physical / structural

Relational

Distribution
Network Structures

Centralized Decentralized Distributed


Transport Structures

Feeder Node
Hub / Interface
Link
Flow

Corridor

Distribution
Warehousing
Financial / Insurance
Retail / Wholesale
Centrifugal and Centripetal Networks

Centrifugal Centripetal
Point-to-Point and Hub-and-Spoke
Networks

Point-to-Point Hub-and-Spoke

Hub
Detour Level in a Hub-and-Spoke
Network

D
B

C
Impacts of Integration Processes on
Networks and Flows
Before Integration After Integration
International border
Network
Flows
Cost, Revenue and Level of Network
Coverage
5 4 Cost: 10
A 10Revenue: 15
3 Benefit: 5
7

Cost: 12
B Revenue: 18
Benefit: 6

Cost: 14
C Revenue: 25
Benefit: 11

Cost: 19
D Revenue: 29
Benefit: 10
Transport Rates and Network
Structure

Rate
Low Average High
Topology of a Network

Unidirectional link
Bi-directional link

Entry and exit


Link Exit
Entry

Node
Types of Network Topology

Mesh Hub-and-Spoke

Linear Tree
Network Geometry and Number of
Links
For each node to be linked to anotherFor
node
all the nodes to be linked together
Even number of nodesOdd number of nodes

Number of possible combinations


For each node to be linked to all other nodes
Topology and Network Connectivity

A
A C
Average Path Length

Fully Connected Network


Minimum Network

B D
B or C

Geographic Barrier

Network Length
A Typology of Transportation
Networks - I

Abstraction level Relative location

Concrete Abstract

Orientation and extent Number of edges and nodes

1 4 3
7 6 5
4
2 1
5 6
3 2
A Typology of Transportation
Networks - II

Modes and Terminals Distance, road type and control of


the vehicle
Highway
Railyard Port Secondary road
Maritime
Rail 100
50
Road
125 km
90 km
Depot

Type of traffic Volume and direction

Continuous 8000
t/hr t/hr
3500

Divided
A Typology of Transportation
Networks - III

Load and capacity Type of correspondence


Hierarchical
0.3 Non- hierarchical
0.9
0.7
0.5 0.7

Pattern Change (dynamics)

Linear

Random
Mesh
Transport Networks and Space

Transport Network

Space

Accessibility
Mode of Territorial Occupation by
Transport Networks

Overlap

Air corridor e”
Rail servic
“No
Road
Cellular coverage
c or ridor
a r it ime
M

Clearly defined Vaguely defined Without definition


Network Strategies to Service a Set
of Locations

A B C

D E F
Absolute and Relative Distance in a
Network

10 km 30 minutes
Networks and Spatial Continuity

A B

C
Concept 4

Transportation Supply and Demand


Transport Supply and Demand

Aij

i Modal Supply
j
Intermodal
Supply

Tij
i Realized Demand j
Potential Demand
Ton-Miles of Freight Transported
within the United States, 1975-2000
(millions)

4,000,000

3,500,000

3,000,000
Air
2,500,000 Water
2,000,000 Pilelines
Truck
1,500,000
Rail
1,000,000

500,000

0
1975 1980 1985 1990 1995 2000
Ton-Miles of Transported Freight,
United States, 1960-2003 (millions)

16,000
1,600,000
Intercity truck
14,000
1,400,000 Rail
Coastal 12,000
1,200,000 Air
10,000
1,000,000

Air
8,000
800,000

6,000
600,000

400,000 4,000

200,000 2,000

0 0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
Passenger-Miles Transported within
the United States, 1975-2004
(millions)

4,000,000

3,500,000
3,000,000
Rail
2,500,000
Urban Transit
2,000,000 Bus
Car
1,500,000
Air
1,000,000
500,000

0
1975 1980 1985 1990 1995 2000 2004
Growth Factors in Transport Demand

Quantity of Passengers or Freight

s
Passengers k m
Freight on-
Growth in r t
production r o
e
and
e ng
s
consumptio
Pas
n
Income
growth

Industrial relocation
Economic specializationKM
Suburbanization

Average Distance
Factors behind Freight Transport
Demand
Economy General derived demand impact. Linked with the GDP. Function of
the structure of the economy in terms of resources, goods, and
Industrial Effect on ton-kms and on modal choice.
services.
location
Spatial Structure Effect on ton-kms. Function of international trade structure.
Containerization and intermodal transportation.
International Both concerning trade and transportation. Economic specialization.
Agreements Increased transborder traffic. Simplified custom procedures.
JIT practices and Decreased inventories. More shipments. Smaller line hauls. Shift to
warehousing faster and more reliable modes. Use of 3rd party logistics providers.
Strategic Between carriers, shippers and often producers and retailers. Lower
alliances
Packaging and distribution costs.
Increased transportability of products. Lower freight density.
recycling
Regulation and Reverse
Increaseddistribution.
competition, level of service and lower costs. Growth of
deregulation intermodal transportation.
Fuel costs, taxes Large and volatile cost components, specifically for energy intensive
and subsidies modes. Preferred mode or carrier.
Infrastructure Efficiency, operating costs and reliability.
and congestion
Safety and Operating speed, conditions and costs. Capacity and weight limits.
environmental
policies
Technology Containerization, double-stacking, automation and robotics, handling
and interchange systems and automated terminals. Information
systems (IDE). Lower costs, increased efficiency and reliability and
new opportunities.
Share of Total Domestic Freight Activity
by Mode, G7 Countries, 1996

100%
%of total domestic metric ton-km

80%

Road
60% Rail
Oil Pipeline
40% Water
Air

20%

0%
Canada France Germany Italy Japan United United
Kingdom States
Share of Total Domestic Passenger
Activity by Mode, G7 Countries, 1996

100%
%of total domestic passenger-km

80%

60%
Rail
Road
40% Air

20%

0%
Canada France Germany Italy J apan United United
Kingdom States
Major Supply Variables for
Transportation Modes

Road Rail Air Maritime


•Lanes •Tracks •Corridors •Canals

VehiclesTerminals Routes
•Width •Grade •Locks
•Speed limit

•Parking •Yards •Runways •Docks


•Transshipment•Dockways •Transshipment

•Speed •Speed •Speed •Speed


•Passengers •Passengers •Passengers •Tonnage
•Tonnage •Tonnage •Tonnage

Atmospheric Conditions
Impacts of Modal Competition and
Intermodal Capacity on Transport Supply

1
C C = T(A) + T(B)

Traffic T(A)
Modal Competition

Mode A Mode B
T(B)

Assignment
C(A) 2
Capacity

C(B)
Intermodal Capacity
T(AB) = C(B)

Terminal A Terminal B
Classic Transport Demand / Supply
Function

Cost
Demand Supply
T 2 − T1
Elasticity =
D C 2 − C1

S1
S2
Equilibrium

C1
C2

T1 T2 Traffic
Transport Elasticity by Activity

100% Emergency
Commuting
Major Purchase

Traffic Special Event

Social Activities

Recreation
0%
Cost
Transport Supply, Demand and
Travel Time

Transport supply (A)

Traffic
Transport Demand (T)

Morning Afternoon
peak peak
Travel time

T>A

T<A
Time of the Day