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Modes of Transportation
National College of Business Administration & economicsLahore Metropolitan University (Proposed)
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Transportation
•Movement of goods from one location to the other.
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• Railroads• Motor carriers• Air carriers• Water Carrier• pipelines
• Unit of transportation measurement is ton-miles*
*(a ton-mile is one ton of cargo carried one mile, and is a standard statistical measurement used in the transportation industry).
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The Basic Modes of Transportation
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Railroads• Conveyance of goods by way of wheeled
vehicles running on rails.
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Railroads• Capable of carrying a wide variety of
products, much more than other modes of transportation.
• Very small number of carriers; likely only one will be able to serve any one customer location and track at a time.
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• seamless dock-to-dock service by one company
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RAILROADS
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• Rail is a long haul (pull), large volume system (high fixed costs; own rights-of-way).
• Accessibility can be a problem.
• Transit times are spotty, but are generally long.
• Reliability and safety are improving and are generally good.
▫ Extra information: ▫ Railroads of Pakistan comprise of
8163 kilometers
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RAILROADS
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Railroads
• Premium intermodal services▫Straight piggyback and containerized
freight▫Double stacks▫Roadrailer service
• Unit train service• Intermodal
Marketing Company (IMC)
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Railroads• Straight piggyback and containerized
freight
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Railroads▫Double stacks
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Railroads▫Roadrailer service
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Railroads• Unit train service
▫ shipped from the same origin to the same destination
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Railroads• Intermodal
Marketing Company (IMC)▫ Intermodal
shipping is a method of moving cargo that involves more than one kind of transportation, whether truck, rail, ship or plane.
▫ It uses special containers so goods can be transferred from ship to rail to truck without having to be repacked.
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Motor Carriers• Conveyance of goods by way of wheeled vehicles
running on roads.
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Motor Carriers
•Low cost of entry causes large numbers of transport carriers.
•Used by almost all logistics systems and account for 82 percent of U.S. freight expenditures.
•Consists of for-hire and private carriers.
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Figure 9-4 Overview of Interstate Motor Carrier Industry
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Motor Carriers
•Low fixed costs and high variable costs.•Do not own their rights-of-way.•Limited operating authority regarding
service areas, routes, rates and products carried.
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Motor Carriers• High accessibility
▫ Road network of Pakistan was last measured at 258350 in 2009.
• Transit times faster than rail or water.
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Motor Carriers
• Reliability can be affected greatly by weather.
• Small vehicle size coincides with lower inventory strategies and quick replenishment (QR).
• Relatively high cost compared to rail and water; trade-off is faster service.
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Air carriers
• Conveyance of goods by aircraft. • Cargo airlines are airlines dedicated to the
transport of cargo. Some cargo airlines are divisions or subsidiaries of larger passenger airlines.
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Air carriers• Limited number of
large carriers earn about 90% of the revenue.
• Any of the air carriers can carry air freight although some haul nothing but freight. ▫ A jumbo jet i.e Boeing
747-400 freighter can carry about 124 tons of goods at a time.
• Cost structure is highly variable.
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Air carriers
• do not own rights-of-way.• Transit times are fastest of the modes, but
rates are highest.
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Air carriers• Average revenue per
ton mile 18 times higher than rail; twice that of motor carriers.
• Seek goods with a high value to weight ratio.
• Accessibility is low as is capability.
• Reliability subject to weather more than other modes.
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International Water carriers
• Bulk amount of goods are transported from one country to another generally for commercial gain by ship.
• Such ships are termed as International water carriers.
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International Water carriers
• General cargo ships▫ Large high
capacity cargo holds
▫ Can handle multiple cargoes (Multi-purpose vessel).
▫ Engaged on a contract basis
▫ Many have self-contained cranes for loading/ unloading
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• Maersk_mc_kinney_moller (World largest cargo ship)• 18270 TEU (twenty feet equivalent unit)• 20ft container can carry 26-28 CBM and 21.6
metric tonns.
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International Water carriers
• Bulk carriers▫ Specially
designed to haul minerals
▫ Largest vessels afloat, some VLCCs at 500k+ tons
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• Knock nevis / Seawise Giant crude carrier▫ Longest ship ever built 564,763
DWT (deadweight tonnage).
• ULCC ultra large crude carrier, VLCC very large crude carrier
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International Water carriers• Tankers
▫ Specially designed for liquid cargoes
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• Q-Max• Liquified natural gas carrier• It has an LNG capacity of 266,000 cubic metres
(9,400,000 cu ft), equal to 161,994,000 cubic metres
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International Water carriers
• Container ships▫ Cargo ships that carry
all of their load in truck size containers, in a technique called containerization.
▫ High speeds for ships; increasingly more common and important
▫ Larger vessels can handle up to 5,000 containers.
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International Water carriers
• RO-RO (Roll on-Roll off)Vessels designed to carry wheeled cargo. Such as automobiles, trucks etc.▫ Basically a large ferry
that facilitates the loading and unloading process by using drive on/off ramps
▫ May also have the capacity to haul containers
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International Water carriers
• Others• OBO
▫ An ore-bulk-oil carrier is a ship designed to be capable of carrying wet or dry cargoes. The idea is to reduce the number of empty (ballast) voyages, in which large ships only carry a cargo one way and return empty for another.
▫ These are a feature of the larger bulk trades (e.g. crude oil from the Middle East, iron ore and coal from Australia,South Africa and Brazil).
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• The OBO carrier MAYA
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International Water carriers• Others• Barges (not transoceanic)
▫ A barge is a flat-bottomed boat, built mainly for river and canal transport of heavy goods.
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• Barges towed by a tugboat on the River Thames in London, England.
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Pipelines• Refers only to the oil pipelines, not
natural gas• Not suitable for general transportation• Some research has been performed to
move minerals in a liquid medium, but outside of a few attempts to transport slurried-coal via pipeline, no real successes have occurred.
▫ E.g Pipelines have been used for transportation of ethanol in Brazil, and there are several ethanol pipeline projects in Brazil and the United-States. The main problems related to the transport of ethanol by pipeline are its corrosive nature and tendency to absorb water and impurities in pipelines
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Pipelines•Accessibility is very low.•Cost structure is highly fixed with
low variable costs.•Own rights-of-way much like the
railroads.•Major advantage is low rates.
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Pipelines In Pakistan
Source : Wikipedia
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ConclusionTable 9-2: Performance Rating of Modes
SelectionDeterminants
Railroad Motor
ModesWater Air
Pipeline
Cost 3 4 2 5 1
Transit time 3 2 4 1 ---
Reliability 2 1 4 3 ---
Capability 1 2 4 3 5
Accessibility
2 1 4 3 ---
Security 3 2 4 1 ---
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