2-1 Transportation Modes Flashcards
Modal choice
selection of mode is the outcome of factors: cost, frequency, service, general value of time attributed to the goods being transported.
modal competition
A mode directly competes with another mode or with the same mode but operated by a different firm.
Modal competition occurs over three dimensions
1. modal choice competition: competition that involves comparative advantage of using one mode or combined modes. The first consideration is distance. But for a similar distance, we consider cost, speed, comfort.
2. route/infrastructure competition: competition that results from the presence of freight/ppl on the same itineraries linking the same nodes.
3. market area competition: competition between transport terminals for using new space or capture new markest (hinterland)
Modal complementarity
When two or more modes exploit their respective advantages over a segment or an area. e.g. corridors.
modal share/split
The respective share of transportation modes reflects different geographical conditions in which transport systems operate. e.g. size of the region, the amount of coastlines.
Modal shift
occurs when one mode has a comparative advantage over another mode in a similar market.
Outcome: a series of decisions made by firms (for freight), or individuals (for passengers) to shift to another mode IF the comparative advantage is large enough.
Road
The dominant land transportation system
Pro:
- low capital cost of vehicles, relatively easy for new entries.
- high relative speed of vehicles. the limitation is the government-imposed speed limits.
- flexible route choice once given a network. door-to-door service.
- infrastructure is not as expensive as rail or maritime
Con:
- high maintenance cost.
- limited potential for economies of scale (technological limits, regulatory safety limits, adding weight adds to fuel consumption)
- Free roads curse: most roads are provided as a public good, as road users usually use for free. they have little control over the improvement of the infrastructure.
- congestion, safety, environmental issues, significant growth of fuel consumption
LTL
Less-than-truckload. Many freight transport companies offer LTL services to customers. Composed of items of various sizes filling up specific orders that are usually not recurrent.
Rail
Pro:
- economics of scale: haul large quantities over long distances
- high-speed, high capacity services
- advantageous over medium distance
Con:
- high initial investment for tracks and rolling stock
- deferred realization of revenue
- delays innovation relative to road transport
Pipelines
Fixed lines designed for specialized commodity flow
Pro:
- operating costs relatively low
- effective for large-scale transport when other modes are infeasible
Con:
- Significant investment upfront
- Environmental concerns frequently delay approval
Water
Pro:
- Relatively low operating costs
- can carry large volumes using less energy and limited labor
Con:
- Can be easily affected by weather, winds, currents
- slow, delays encountered in ports during loading/unloading
- is hindered by environmental factors. e.g. orientations of rivers may not correspond to the direction of the market demand
maritime routes
corridors of a few kilometers in width trying to avoid discontinuities of land transport by linking ports.
types: port-to-port; inter-range; multi-ranges
type of ships
passenger vessels: ferries; cruise ships
bulk carriers
RORO vessels
general cargo ships (traditionally smaller non-bulk cargo; replacing by larger containerships)
Container unit
TEU (twenty-foot equivalent unit)
Effect of airline deregulation on network structure
the emergence of hub-and-spoke networks centered on the major airport where a single carrier is often dominant. Hub and spoke networks have the advantage of offering a larger market coverage (number of airports) with a smaller number of services. A hub also enables to reconcile more effectively long distance and regional air services.
However, the selection of a hub was the outcome of commercial decisions made by air carriers. It does not necessarily reflect the existing urban hierarchy.
