Modes of Transportation

National College of Business Administration & economicsLahore Metropolitan University (Proposed)

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

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

• 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

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.

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

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

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

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.

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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