The Bostwash Corridor: Global and National Dimensions

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Projecting and Planning for the Movement of Goods and Projecting and Planning for the Movement of Goods and People Into, Out of, and Within, the Northeast People Into, Out of, and Within, the Northeast Corridor, 2007 – 2025, University of Delaware, May 11 Corridor, 2007 – 2025, University of Delaware, May 11 2007 2007 The Bostwash The Bostwash Corridor: Global and Corridor: Global and National Dimensions National Dimensions Jean-Paul Rodrigue Associate Professor, Dept. of Economics & Geography, Hofstra University, New York, USA Email: [email protected] Paper available at: http://people.hofstra.edu/faculty/ Jean-paul_Rodrigue

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The Bostwash Corridor: Global and National Dimensions. Jean-Paul Rodrigue Associate Professor, Dept. of Economics & Geography, Hofstra University, New York, USA Email: [email protected] Paper available at: http://people.hofstra.edu/faculty/Jean-paul_Rodrigue. - PowerPoint PPT Presentation

Transcript of The Bostwash Corridor: Global and National Dimensions

Page 1: The Bostwash Corridor: Global and National Dimensions

Projecting and Planning for the Movement of Goods and Projecting and Planning for the Movement of Goods and People Into, Out of, and Within, the Northeast Corridor, People Into, Out of, and Within, the Northeast Corridor, 2007 – 2025, University of Delaware, May 11 20072007 – 2025, University of Delaware, May 11 2007

The Bostwash Corridor: The Bostwash Corridor: Global and National Global and National DimensionsDimensionsJean-Paul RodrigueAssociate Professor, Dept. of Economics & Geography, Hofstra University, New York, USA

Email: [email protected] available at:http://people.hofstra.edu/faculty/Jean-paul_Rodrigue

Page 2: The Bostwash Corridor: Global and National Dimensions

UPS Willow Springs Distribution Center, ChicagoUPS Willow Springs Distribution Center, Chicago

Gateways and Corridors in Transportation and Regional Economics

Theories and concepts about corridorsTheories and concepts about corridorsGlobal cities and hierarchiesGlobal cities and hierarchies

Economic roles and functionsEconomic roles and functionsHinterlandsHinterlandsConnectivityConnectivity

Flows and locationsFlows and locations

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Types and Functions of Freight Corridors

Type Function ExamplesShort distance (within a gateway / hub)

Modal shift, improved capacity and throughput.

Switch carrying, Alameda, “Agile Port”, Panama

Hinterland access (between a gateway and its vicinity)

Expand market area, reduce distribution costs & congestion

Rail shuttles, PIDN, Virginia Inland port

Landbridge (between gateways)

Long distance container flows, continuity of global commodity chains

North American landbridge

Circum-hemispheric (between gateways with a maritime segment)

Integrated global transport chains

Northern East-West Corridor

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Elements of the Maritime / Land Interface

Port System

Foreland (Shipping Network)

Road Rail Coastal / Fluvial

Hinterland (FDC)

Corridors and Hubs

Gateways

Mar

itim

e Fr

eigh

t D

istr

ibut

ion

Inla

nd F

reig

htD

istr

ibut

ion

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Traffic at the 50 Largest Container Ports, 2004

Dubai

Tacoma

Santos

Jeddah

Durban

Seattle

Salalah

Oakland

Colombo

Melbourne

Long Beach

Charleston

Nhava Sheva

Los Angeles

New York/New Jersey

KobeTokyoOsaka

BusanNingbo

Nagoya

Manila

Dalian

Yantian

Tianjin

Keelung

Yokohama

ShenzhenShanghai

Quingdao

Singapore

KaohsiungHong Kong

GuangzhouPort Kalang

Laem Chabang

Tanjung Priok

Tanjung Pelepas

LeHavre

Hamburg

Antwerp

Valencia

Rotterdam

Barcelona

Algeciras

Felixstowe

Gioia Tauro

Bremen/BremerhafenPacific Asia Europe

Traffic 2004 (TEU)Less than 2 million

2 to 4 million

4 to 7 million

7 to 10 million

More than 10 million

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Three Major Pendulum Routes Serviced by OOCL, 2006

Fos

Tokyo

Genoa

Ningbo

Hamburg

Shanghai

Le Havre

KaohsiungHong Kong

Singapore

Barcelona

Rotterdam

Port Kelang

Southampton

Laem Chabang

OaklandLos Angeles

NorfolkNew York

Charleston

Atlantic Express (ATX)

European Union / Mediterranean (EUM)

South China Express (SCX)

27 Days

49 Days

39 Days

Note: Paths are approximate

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Pacific Asia Europe

APM TerminalsDubai Ports WorldHutchison Port HoldingsPort of Singapore AuthorityEurogateStevedoring Services of America

Dedicated Maritime Container TerminalsMajort Port Holdings, 2007

Dr. Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University

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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.

Gateway

Intermodal

Hub

Transmodal

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Hinterland Setting and Major Economic Regions

North America Western Europe East and Southeast Asia

Coastal concentrationLandbridge connections

Inland concentrationCoastal gateways

Coastal concentrationLow hinterland access

Hinterland intensity Freight Corridor hierarchy Gateway hierarchy

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Gateways and Hinterland Effect

Efficient Inland Freight DistributionInefficient Inland Freight Distribution

Pacific Asia North American West Coast

SEZ

Corridor

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Corridors and Regional Development

Specialization andinterdependency

Gateway

FlowsOrder

High LowHigh Low

A B C

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Supply Chains, Gateways and Corridors

Global supply chains and production networksGlobal supply chains and production networksContinental integrationContinental integration

Gateway choiceGateway choice

APL Distribution Center, Shenzhen, ChinaAPL Distribution Center, Shenzhen, China

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Commodity Chains and Added Value

Commodity chain

Adde

d va

lue

Low

High

Manufacturing

R&D Globalization

DistributionDesign

Branding Marketing

Sales / Service

Concept Logistics

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Logistics and the Acceleration of Freight

Push Logistics

Shipment

Transshipment

Pull Logistics

Containerization

Speed barrier

Logistical threshold

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The North American Landbridge

El Paso

Chicago

Kansas CIty

Minneapolis

Salt Lake City

Miami

Tacoma

Fraser

Seattle

Oakland

Houston

Halifax

Veracruz

Altamira

Savannah

PortlandMontreal

Vancouver

Baltimore

Manzanillo

Long Beach

Charleston

New Orleans

Los Angeles

Jacksonville

Hampton Roads

Wilmington (DE)

Port Everglades

New York/New Jersey

American Landbridge

Canadian Landbridge

Mexican Landbridge

Connector

Major Container Port

Major Rail Freight Distribution Center

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Gateways, Corridors and Competitiveness

Emerging continental networksEmerging continental networksTrade barriersTrade barriers

Strategic partnersStrategic partnersInterregional linkagesInterregional linkages

International competitionInternational competition

APL “Australia” entering San Francisco HarborAPL “Australia” entering San Francisco Harbor

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Beware of Future Expectations: The Fallacies of Linear Thinking (Projected TEU Traffic, Port of NY/NJ)

0123456789

101112

2000 2010 2020 2030 2040 2050 2060

Milli

on T

EUs

ImportsExportsEmpties

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Are You &*%@# Out of Your Mind? Projections for Container Port Volumes, 2020

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Sectors of American Imports of Asian Goods Through Maritime Container Shipping, 2004 (in TEUs)

0 300,000 600,000 900,000 1,200,000 1,500,000 1,800,000

Big box retailer

Furniture

Electronics

Appliances

Auto parts

Tires

Shoes

Toys

Electrical equipment

Machinery

Textiles

Apparel

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World Container Traffic, 1980-2005, and Guesses for up to 2020

0100200300400500600700800900

1000

1980 1985 1990 1995 2000 2005 2010 2015 2020

Millio

n TEU

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Balance of Containerized Cargo Flows along Major Trade Routes, 1995-2006 (in millions of TEUs)

-18

-16

-14

-12

-10

-8

-6

-4

-2

01995 1996 1997 1998 2000 2001 2002 2003 2004 2005 2006

Europe/USAAsia/EuropeAsia/USA

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Main North American Trade Corridors and Metropolitan Freight Centers

Miami

Boston

Dallas

Denver

Norfolk

Atlanta

Memphis

Halifax

Detroit

Toronto

Chicago

Houston

Phoenix

Seattle

Calgary

Edmonton

Winnipeg

Montreal

New York

Portland

Baltimore

Charlotte

Cleveland

St. Louis

San Diego

Vancouver

Charleston

Pittsburgh

Cincinnati

New Orleans

Kansas City

Minneapolis

Los Angeles

Philadelphia

Oklahoma Ci ty

San Francisco

Salt Lake City

Hub

Gateway

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Institutional Frameworks for Governance

Political jurisdictionsPolitical jurisdictionsTransport networks and corporationsTransport networks and corporationsTrading blocs and internal free tradeTrading blocs and internal free trade

Harmonization of regulations and practicesHarmonization of regulations and practices

““Maersk Sealand” Locomotive, Landers Yard (NS), ChicagoMaersk Sealand” Locomotive, Landers Yard (NS), Chicago

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NAFTA Transborder Truck Flows and Traffic at US Ports of Entry, 2002

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Is 53 the Magic Number?

■ New container specifications?• Economies of scale push towards a larger container:

• Particularly for inland carriers.• Strong “legacy costs” (inertia):

• Accumulated investments in modal and intermodal infrastructure.• The North American vs. the European standard:

• ISO 40 footer: 12.027 m x 2.33 m.• NA domestic 53 footer: 16.15 m x 2.4 m.• European Intermodal Load Unit: 13.2 m x 2.4 m.• China will play a significant role in the decision.

• The bottom line is likely to be the size that can be fitted on road transport systems, so 53 could be the “magic number”.

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Carrying Capacity of Containers (in cubic feet)

1,169

2,385

2,690

2,895

3,026

3,471

3,830

3,955

4,090

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

20 feet standard container

40 feet standard container

40 feet hi-cube container

EILU Long 45

45 feet standard container

48 feet standard container

53 feet standard container

53 feet hi-cube container

53 feet truck

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Translisft crane, NS Rutherford yard, PATranslisft crane, NS Rutherford yard, PA

Public and Private Investments in Gateways and Corridors

Financing corridor and gateway developmentFinancing corridor and gateway developmentCo-production and cooperationCo-production and cooperation

Bottleneck mitigationBottleneck mitigationMultimodal InfrastructureMultimodal Infrastructure

Inland portsInland portsRegulatory preferencesRegulatory preferences

Fiscal regimesFiscal regimes

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Level of Congestion of the Interstate Highway System

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Regina

Calgary

Memphis

Chicago

Winnipeg

St LouisKansas City

Minneapolis

Dallas / Fort Worth

Houston

Savannah

Montreal

Vancouver

Charleston

Hampton Roads

New York/New Jersey

TacomaSeattle

Oakland

Long BeachLos Angeles

Potential Location of Major Transmodal Rail Fac ilities:Maritime Gateways and Inland Hubs

Dr. Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University

Maritime Rail Gateway

Transmodal Rail Hub

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Boston – Washington Corridor: Volume to Capacity Ratio

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Port Inland Distribution Network and Freight Clusters

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Circum Hemispheric Dreams

Russia

ChinaCanada

Unite

d St

ates

Kazakhstan

Mongolia

New York

Vostochny

Lianyungang

Archangel'sk

Brest

Druzhba

Zabaykalsk

Oulu

Lokot

Perm'

Astana

Harbin

Urumqi

Beijing

IrkutskLanzhou

VologdaVainikkala

Ulaanbaatar

Novosibirsk

Yekat erinburg Presnogorkovka

Halifax

MoscowSt. Petersburg

El Paso

Chicago

Kansas CItyMinneapolis

Salt Lake City Tacoma

Oakland

Houston

Savannah

Montreal

Vancouver

Long Beach

Haparanda/Tornio

New York

Rotterdam

Maritime Segment

Rail Main Trunk (Broad Gauge)

Rail Main Trunk (Standard Gauge)

Port

Gauge Change

Rail Terminal

Azimuthal Equidistant Polar Projection

Arctic Bridge

Northern Sea Route

Northwest Passage