Chains

1 Existing services for chosen product in the corridor

With the decision of transporting passenger vehicles in the chosen corridor it is wise to look at the

ways vehicles are being transported from the factories to the dealers. For not making it too complex

these means of transportations will be described as chain with an origin in Germany and a

destination on the UK. It is possible to only use one kind of mode for transport, but there are also

numerous combinations between different transport modes possible to transport the vehicles

between the UK and Germany. One commonality of each type of multimodal chain crossing the

North Sea is inevitable. Besides making use of ferry transport, there is also the possibility to use the

rail tunnel connection between France and the UK. Below different (multimodal) transport activity

chains are identified based on current practices:



Road transport

In respect to the corridor transport of the vehicles without any intermediate transhipment of the

vehicles is only possible via road transport, whereby the North Sea is passed by ferry or train. Figure

X.X. displays in a chronological order which activities takes place in this transport process. Process A1

describes the loading of the vehicles onto the truck at the production location of the vehicles. Next

activity describes the road transportation, whereby also the truck with vehicles makes use of the

train or ferry. Finally, at the dealers location the vehicles are being unloaded.

Transport

Load vehicles at Unload vehicles

vehicles to

the factory at dealers site

dealers site

A1 A2 A3

Figure 1: Road transport chain



Train & short sea shipping

Another type of transport chain for vehicles is formed out of a combination of train transport and

short sea shipping. Figure X.X. displays an activity chain typically involved with the combinations of

these two types of modes. This transport chain can be divided into three kinds of transport: the

transport of the vehicles to the seaport terminal by train, the transport to the destination terminal by

short sea shipping and the transport to the dealer (processes A2, A4 and A6). The other processes

can be described as loading and unload activities. Be aware that this concept is only viable when the

production location has a rail connection.

Transport Sail to Transport

Load vehicles at Tranship Tranship Unload vehicles

vehicles to destination vehicles to

the factory vehicles vehicles at dealers site

seaport terminal terminal dealers site

B1 B2 B3 B4 B5 B6 B7

Figure 2: Train & short sea shipping chain



Inland water transport & Short sea shipping

With this multimodal transport concept vehicles are being transported to an inland terminal from

which the vehicles will be transported to the seaport terminal. At the seaport terminal the vehicles

are being transhipped to the UK by short sea shipping. Finally arrived in the UK the vehicles are being

distributed to the dealers location (see figure X.X.).

Transport

Load vehicles at Tranship Transport to Tranship

vehicles to inland

the factory vehicles seaport terminal vehicles

terminal

C1 C2 C3 C4 C5





Sail to Transport

Tranship Unload vehicles

destination vehicles to

vehicles at dealers site

terminal dealers site

C6 C7 C8 C9



Figure 3: Inland water transport & Short sea shipping

River sea transport A

With the river sea concept it will be possible to transport the vehicles from the factory directly to the

destination terminal in the UK, without any transhipment of the vehicles needed. Using this concept

requires that the production location of the vehicles is located at an inland waterway and has

necessary equipment available to support the loading and unloading of the vehicles. Figure X.X.

describes the typical activities that are involved with this transportation concepts chain.

Transport

Load vehicles at Sail to Tranship Unload vehicles

vehicles to

the factory destination vehicles at dealers site

deale's site

D1 D2 D3 D4 D5

Figure 4: River sea shipping with direct inland waterway connection



River sea transport B

When production locations of the vehicles are not accessible by inland waterways and the concept of

river sea transport should be used, loading and unloading the vehicles should be performed at an

inland terminal. For transport to the inland terminal different kinds of modes can be used, think of

rail or road transport. Figure X.X. show the activity scheme that is related with this way of

transportation.

Transport Sail to Transport

Load vehicles at Tranship Tranship Unload vehicles

vehicles to inland destination vehicles to

the factory vehicles vehicles at dealers site

terminal terminal dealers site

E1 E2 E3 E4 E5 E6 E7

Figure 5: River sea shipping without direct inland waterway connection



Other transport chains

Also other combinations can be considered when looking at the transportation of vehicles between

Germany and the UK. A good example is the concept of using only the train for transport, whereby

the tunnel between Calais (France) and Dover (UK) is being used for crossing the North Sea. Another

option is using road transport for transportation of the vehicles to the seaport and short sea shipping

for crossing the North Sea. In theory, even more combinations between different modalities could be

made, but understand that the more modalities are used in one transport chain, the number of

transhipments will increase which result in an increase of costs.



Conclusions

Comparing the different transport concepts above, it can be concluded that the last three activities

of each described chain are the same. This can be explained by the fact that the destination terminal

in the UK is being used as a distribution centre from which the vehicles are being distributed,

independent of the mode which thru the vehicles are being delivered to the terminal. So with

comparing the different transportation concept, without taking road transport into account, the last

three activities of each chain are not being considered in this analysis. This leads to the conclusion

that the system boundaries of the transportation concept of this report reach from the production

location of the vehicles up to the destination, distribution terminal.

Current practices show us that a combination of train and short sea shipping is the most used

concept for transportation of passenger vehicles between Germany and the UK (TX, logistic/BLG).

Also transportation via inland waterways is being used for transportation of vehicles over the river

Rhine between German Ruhr area and the seaport in Rotterdam (Interrijnholding/Broekman/BLG).

Transportation by truck can be considered as an option too for transportation of the vehicles

(Koopman). Besides these three transport concepts, other transport concepts (mentioned above)

could also be viable in theory. But to have a real case the river sea transport service to be designed

will focus only on competing with these mentioned three existing concepts.

Road transport



Rail transpor







Rail transport

Vehicle production Intermediate Seaport terminal

Inland terminal Inland shipping transport Short sea shipping

location seaport terminal UK

Road transport



River sea transport









Road transport



River sea transport









Figuur 6

2 Transport costs in a chain perspective

blabla



2.1 General transport costs

In order to compare the traditional way of sea and river transport with a river-sea concept the

generalized transport cost function is used. The reasons for using this function are the facts that

transport service rate is a main component and that transport times are also accounted for. The

generalized cost function is applicable for a market situation in sea and inland shipping in which large

quantities and detailed data on commodities is hard to come by.

The percentage of the value of transported freight that is spent on the logistics is calculated by

(Tavasszy and Groothedde, 1997), Cs,m are the generalized transport costs, Ms the

transport rate per unit, vm the transport time valuation of the product and Ts the transport time. This

shows that the transport costs are not only depending on the transport rate of the service, but also

on the devaluation of the product during the transport. It also shows that products that do not

devaluate very quickly, benefit more from a relative reduction of the transport rate than product that

do. Therefore slow moving consumer goods are specifically suitable for relatively slow transport.

Several studies have been conducted in the field of value of time for inland shipping, but these

studies still show substantial range differences. For the Netherlands and Belgium for example the

valuation of travel time savings lies between 0.05 and 0.20 Euro per tonne per hour (BRON!).

A river-sea concept has an effect on the build up of the transport rate per unit. The transport rate per

unit for example includes the cost for transhipment in a sea port. This is exactly the cost component

which is avoided by river-sea concepts. What are the transport transhipment components however?

In order to provide a reference when speaking about transport costs an overview is provided of the

most important transport cost components for the transport rate of transport service M s (Emmett,

2009)



Fixed cost elements

 Crew costs. These cover wages and all associated employment costs, such as pension

provision.

 Insurance costs. This covers the costs for the vehicle/equipment and any goods in transit

insurance cover.

 Administration costs. This covers management overhead costs; premises and all

administration required managing the activity.

 License costs. The covers the government fixed licence charges.

 Depreciation costs. This covers the capital write off, or the finance costing of the vessel such

as lease charges.



Variable or running cost elements

 Fuel. The cost of fuel used while in operation.

 Maintenance. All costs incurred while maintaining the vessels operational capability.

 Other variable operational costs. These include all costs incurred by transport activities like

transhipment cost, quay levies, waterway passage levies/customs, storage cost for cargo on

quay or any other form of intermediate storage while not in actual transport and

depreciation of goods.



Because river-sea concepts are a comprise between sea going and inland ships, the cost of this

compromise has to offset the cost of transhipment in a sea port. In other words:

The extra cost of river-sea transport in comparison to the river service (extra river cost) + the extra

cost of river-sea transport in comparison to the sea service (extra sea cost) ≤ Saving costs in

transhipment (handling cost, port dues and cost of time spent in port) (Lopez, 2008).

In a more brief way the cost functions for the two different logistics chains are as follows:

For river + sea

, where is the cost of intermediate transhipment cost at a

sea port.

For river-sea

, for which now can be stated that





Conclusions

 Nice formula

 Motivate why value of time is not very important in our concept (value of time is already low

for our product, see ko docu) comparing different modes and will not be included

 Not possible to compare other concepts and concepts with pre-transport



2.2 New formula

Input delivered by tavasszy and groothedde

General formula for costs (orde van grootte? Per unit of per trip navragen broekman!), which is

applicable to different modes, is sum of following components:

1. Road transport costs (including ferry costs)

2. Rail transport costs

3. Inland waterway transport cost

4. Short sea shipping costs (including transfer costs)

5. Transhipment costs



One to four based on transported distance with this mode and the unit costs per km. Five based on

modalities involved with transhipment?!



2.3 Profiles

Based on production locations, grote beslisboom maken misschien link met chains stuk







Tx logistic  bremerhaven op sss ook rotterdam



Operators

 Cobelfret

o Duisburg

o Humber sea terminal limited at Killingholme

o Purfleet

 Broekman (verlader)

 Interrijn Ro-Ro





Duisburg CdMD: left bank of river Rhine

50 000 m2

one fluvial ro-ro berth



Address: CdMD

Hafennummer 7723

Rotterdamerstrasse, 50

D-47229 Duisburg

Phone : 00 49 2065 49 93 68 00 49 2065 49 93 68

Fax : 00 49 2065 49 93 69

E-mail



Humber Sea Terminal Limited

Clough Lane

North Killingholme

North Lincolnshire

DN40 3JP

United Kingdom



Purfleet CdMR north bank of river Thames

18 miles from central London

370 000 m2

2 ro-ro berths



Address: CdMR Purfleet Ltd

London Road Purfleet

Essex RM19 1PD

GB - Purfleet Essex

Phone : +44 (0)1 708 86 5522 +44 (0)1 708 86 5522

Fax : +44 (0)1 708 86 6418

E-mail







Duisburg CdMD: left bank of river Rhine

50 000 m2

one fluvial ro-ro berth



Address: CdMD

Hafennummer 7723

Rotterdamerstrasse, 50

D-47229 Duisburg

Phone : 00 49 2065 49 93 68 00 49 2065 49 93 68

Fax : 00 49 2065 49 93 69

E-mail



Southampton



Hull4



Immingham



Grimsby



Sheerness (roro automotive stuk)



Bristol (roro automotive stuk)

Transportation costs per unit (combi between generalized transport costs and text of sr rhone)

Physical transport costs between locations

Distance from origin to destination

Medium used

Speed

Capacity of ship



Handling costs

Number of transhipment

Costs of one transhipment (Container crane lift = €50,-, see powerpoint)

Number of storage events

Storage costs in the stack at the terminal (if I am right you start paying storage costs after a few days

after arrival)

Time value costs (see Groothedde and Tavassy)







Figure X.X. to figure X.X. gives insight in the development of the share of miscellaneous cargo in the

total inland waterway transport between the Ruhr area in Germany and the United Kingdom. It can

be concluded that there is a relative increase in transport of miscellaneous goods in the corridor

United Kingdom and the Ruhr area. This resembles