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Markus Hesse Department of Earth Sciences, Urban Studies Free University of Berlin

The Transport Geography of Logistics and Freight Distribution: North American and Western European Perspectives. Markus Hesse Department of Earth Sciences, Urban Studies Free University of Berlin D-12249 Berlin, Germany. Jean-Paul Rodrigue Dept. of Economics & Geography Hofstra University

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Markus Hesse Department of Earth Sciences, Urban Studies Free University of Berlin

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  1. The Transport Geography of Logistics and Freight Distribution: North American and Western European Perspectives Markus Hesse Department of Earth Sciences, Urban Studies Free University of Berlin D-12249 Berlin, Germany Jean-Paul Rodrigue Dept. of Economics & Geography Hofstra University Hempstead, NY USA 11549 Papers available at: http://people.hofstra.edu/faculty/Jean-paul_Rodrigue http://www.geog.fu-berlin.de/~teas

  2. Outline • A – Geographical Issues of Logistics • Challenging the derived transport demand. • Address the geography of distribution (production / transportation nexus). • B – BostWash and the Ruhr Area • Role of logistics in the economic change of regions. • Empirical evidence / illustration of a new regional geography of distribution. • C – Regional Logistics and Sustainability Issues • Statement of the challenges.

  3. A – Geographical Issues of Logistics • A Geography of distribution • Globalization: dominant paradigm of economic and transport geography. • Economic geography: • Locations, dynamics and relations. • Transport geography: • Flows (modes and terminals) and accessibility. • Logistics have changed the relationships between economic and transport geography. • Geography of distribution: • Integrating economic and transport geography. • Challenging the derived transport demand.

  4. Materials Management Logistics (Integrated Demand) Induced Demand Derived Demand Physical Distribution A – Logistics and Integrated Transport Demand • Integrated transport demand • Two components of logistics: • Materials management (derived demand). • Physical distribution (induced demand). • Difficult to tell MM and PD apart. • Manufacturing and mobility are now much more embedded. • Elements • Flows: nature of circulation. • Nodes: locations servicing distribution (DC). • Networks: spatial structure of distribution.

  5. A – Conventional and Contemporary Arrangement of Goods Flow Conventional Raw Materials & Parts Manufacturing Distribution Customers Local Distribution Raw Materials National Distribution Regional Storage Retailers Storage Contemporary Supply Chain Management Customers Raw Materials Distribution Center Manufacturing Retailers Material flow (delivery) Core component Information flow (order)

  6. B – Regional Setting: BostWash and Ruhr Area

  7. B – Logistics in the regional economic change I • Changing demand for freight • Regions are becoming integrated in large-scale network economies. • New markets conditions (reliance on global supply chains). • Tertiarization of the economy (shift from manufacturing to services). • Relocation of production; Declining heavy industries. • Economic gains (corporate acquisitions, employment).

  8. B – Logistics in the regional economic change II • Changing supply of freight • Old infrastructure (large lots, shunting yards, private and public railway systems in transition) • Development of intermodal transportation systems. • Integration of freight transport services (third party logistics). • Higher level of supply chain management. • Cluster-development and re-cycling of old industrial sites. • ‘Competitive advantage’ of large greenfield locations at highway intersections, mostly at the urban edges • Increasing competition of all mainports: • Rotterdam, Schiphol, Antwerp, Duisburg. • New York, Hampton Roads, Baltimore, Montreal, Halifax.

  9. B – National Trade Areas, Articulation Points and Major Land Freight Gateways of the United States Articulation Point Land Freight Gateway Trade Area Corridor

  10. B – Major Intermodal Terminals, BostWash Corridor

  11. Maine Albany Massachusetts Boston New York Connecticut Pennsylvania Davisville New Haven Bridgeport Potential Regional Barge Port New York LO/LO Barge Service Philadelphia New York Metropolitan Area New Jersey Wilmington Camden Virginia Salem Potential Freight Catchment Area Baltimore Potential Freight Diversion Delaware Washington B – Regional Sub-Harborization of Container Terminals by the Port of New York

  12. B – The Ruhr Area: The role of logistics in the transition from industry to services

  13. B – Freight transport volume in the Ruhr Area Modal split in freight transport 1990 and 2010 (estimations),in 1000 tonnes. Source: Kessel und Partner Consultants. Recent data on freight volumes not available. Older statistics suggest highest share in road modes (local, long distance) and growth of tonnage in all sectors

  14. B – Spatial shift in distribution employment Number of employees in Transport, Warehousing, Freight Forwardingand Logistics, in 1000. Source: Mathejczyk, 2001. Distribution related employment is rising in areas at the edge of the Ruhr (e.g. Duisburg, Unna) and declining in the center (Dortmund)

  15. B – WEST: intermodal development “Logport Duisburg” “Logport“: turning a former steel mill into an intermodal inland-port thatcorresponds to the Duisburg mainport, Europe’s largest domestic port

  16. B – CENTER: urban freight site, Dortmund GVZ Ellinghausen: the re-use of a former coal mine site for logistics purposes, developed by MGG (a real estate subsidiary of the Ruhrkohle AG)

  17. B – EAST: DC @ peripherySub-urbanization of distribution beyond the urban edge Industrial development “Am Mersch”, Boenen (Kreis Unna): 100 hectares net(20 hectares vacant); access to motorway, intermodal rail terminal (port: 8 km);38 businesses established (warehousing/distrib., wholesale, retail, light manufact.)

  18. B – Selling the region as a “hub” Consultants recommend to develop the eastern edge of the Ruhr Area asa “hub” for: 1) regional distribution purposes, 2) continental distribution

  19. C – Assessing the regional dimension of logistics • The role of logistics and freight transport • Vital component of regional economic change. • Driver and subject in the magic triangle of technology, organisation and territory. • Distribution does not equal job losses in the industry. • Regional reorganization of distribution • Convergence of logistics and intermodal transportation • Spatial shift of employment: from center towards periphery. • Concentrations in east and west (Ruhr); along the New York – Baltimore corridor. • Logistics nodes @ periphery: • Ruhr: “Dissolution” of the region? • BostWash: part of a corridor of distribution.

  20. C – Regional Logistics and Sustainability Issues • Regional external costs of the “freight based” economy • Traffic generation, space consumption, flexible labor. • Contradiction between the efficiency of logistics and environmental impacts • The role of the consumer • Potentially more power in the supply chain. • The responsibility of public policy • Emerging regional knowledge on logistics (universities, research institutes, service providers). • Investment, zoning, security and safety regulation. • Shift from a modal to multi-modal surface transportation policy. • Increased environmental accountability.

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