3/18/2023

MULTIMODAL TRANSPORT MANAGEMENT

LECTURE 4

Assoc. Prof. Nguyen Minh Ngoc

National Economics University
Hanoi, Vietnam
2023

CHAPTER 2. TRANSPORT MODES IN

MULTIMODAL TRANSPORT

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INTRODUCTION
Chapter Objectives:
• Interpret concepts and apply principles in modes of transport
• Describe, explain, and design the operation process of different modes of
transports
• Describe, explain, and design services in different modes of transports

INTRODUCTION
Chapter Contents:
2.1. Road transport [lecture 3]
2.2. Railway transport [lecture 3]
2.3. Air transport [lecture 4]
2.4. Water transport [lecture 4]
2.5. Several modes of multimodal transport [lecture 5]

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INTRODUCTION
Materials:
• Monios, J. and Bergqvist, R. eds., (2017), Intermodal freight transport and
logistics: Chapter 4
• Lowe, D., (2005), Intermodal freight transport. Routledge Chapter 8

2.3. Air transport

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Introduction

Overview of air transport

 Air freight transport is a mode of transport applied to
both domestic and international transport routes of
Vietnam today.
 Vietnam has 22 airports that are being exploited for
civil purposes, including (21 airports under Vietnam
Airport and Van Don Airport under Sun Group).
 In 2020, the volume of goods transported by
airtransport is 524.8 million tons km, equivalent to
about 0.19% of the volume of goods transported
(GSO, 2021).

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Types of air freight transport carriers

 Services provided by passenger carriers (Passenger Airlines)
- Usually provide airport-to-airport service
- Delivery – Pick up goods at the airport
 All-Cargo Carriers Services
- Scheduled service delivery to major markets worldwide
- Polar Air Cargo, Atlas Air and Kalitta Air Cargo

Types of air freight transport carriers

 Heavy Lift Cargo Carrier or usually charter cargo airlines):
- Goods and equipment for businesses and governments
- Commodities are often referred to as project goods
- Volga-Dnieper Airlines and Antonov Airlines
 Integrated Express Carriers (Integrated Express, FedEx
Express, UPS and DHL
- Door-to-door service: pickup - transport - delivery
- Documents and small packages (2 to 70 pounds) the next
day delivery and/or after that

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Market structure
 Carrier revenue shows the concentration of income on a small group
of major domestic and international airlines.
 Passenger Airlines: that carry goods on passenger planes of Vietnam:
Vietnam Airlines, Bamboo Airways, Vietravel Airlines, Pacific Airlines,
Vietjet Air, Vietnam Air Service Company VASCO, Hai Au Aviation Joint
Stock Company (seaplane in Vietnam), Vietnam Helicopter
Corporation.
 Cargo transport: Vietnam Airlines Cargo, Vietjet Cargo
 Hybrid - Carrier: Vietstar Airlines

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Market structure
 Foreign passenger carriers: Air France, British Airways,
Japan Airlines, All Nippon Airways, Asiana Airlines, China
Airlines, Cathay Pacific, China Southern Airlines, Emirates,
Korean Air, Lao Airlines, Eva Air, Lion Air, Aeroflote,
Lufthansa, Philippine Airlines, Qzantas, Scandinavian
Airlines System, Siem Reap Airways, Thai Airways,
Singapore Airlines, Malaysia Airlines.
 Cargo carriers (integrated express): DHL AVIATION, UPS
Airlines, FedEx

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Market competition
 Intermodal Competition: compete with other modes of
transport
 Intramodal Competition: Competition on rates and
services between airlines is very fierce, although the
number of airlines is not many
 Service competition: frequency and duration of flights
on a route
 Freight competition: shorten transit times, improve
accessibility

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Features of air transport services

 The majority of air freight shipments have high value
and/or are urgent shipments
 The main advantage of air freight is speed. The end-
to-end time for a given journey by air transport is
shorter than that of other modes.
 Air freight dominates long-distance and/ore time-
sensitive small shipments
 Except for adverse conditions like fog or snow, airlines
are able to provide reliable service

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2.2. Terminals and operation

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Airports
 Most airports are invested by goverments
 The main cargo handling activities that take place at the
airport are picking-up and delivering cargo by airlines,
packing cargo into palettes, X-ray scanning for outgoing
goods, customs clearance of import and export goods, and
loading on and unloading from air planes.
 Good Consolidation and short-term storage are usually
done at the airport by airlines or cargo handling agents or
out-of-airport forwarding companies.

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Airports

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Freight flows in airports

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Freight flows in airports

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Intercontinental Hubs

 An intercontinental hub connecting two or three

continents by cargo and passenger planes
 Provides cargo transhipment capabilities as well as
aservice for aircraft requiring refueling and fleet
changes.
 Reduce operating costs by eliminating routes that
generate lower revenue, Improve aircraft utilization
 Example: Singapore Changi (SIN)

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International Gateways

 The gateway functions as a center for consolidating,

distribution and forwarding freight services
 The gateway airport does not depend on the
surrounding market area to generate sufficient cargo
volume suitable for aviation related activities.
 The majority of goods moving through the gateway
airport do not originate and are not for the
surrounding market area of the gateway airport.

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National Cargo Hubs

 As the backbone of an integrated express carrier, providing

connections to each market in the integrator's system.
 After arriving at the hub, packages are unloaded, sorted to
the appropriate destination market, and then loaded back
to the appropriate departure aircraft.
 Cargo traffic originating or destined for the local market is
typically a small percentage of an airport's total air cargo
traffic.

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Regional Hubs & O&D terminal / Local

Market Stations

 Regional Centers: Regional centers serve the area in

which they are located by performing the cargo
sorting and distribution functions of the carrier's main
hub.
 O&D terminals/local markets: Origins and
destinations in the surrounding market area of the
airport often coincide with population centers where
industry, commerce, and transport infrastructure are
concentrated

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Direct air cargo service facility

 Consolidation of customers' outgoing air cargo from

the surrounding market area of the airport.
 Delivery of customers’ incoming air cargo to the
surrounding market area of the airport.
 A “catchment area” service area, which must generate
enough revenue and incoming and outgoing cargo to
cover the carrier's costs of operating the air carriers.

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2.4. Maritime transport

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Introduction

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Overview of maritime transport

 Maritime transport includes the physical movement of goods
from the supply area to the demand area for certain types of
cargo, together with all activities necessary to support and
facilitate conveniently for that transportation.
 The maritime transport system consists of three essential
components important to the movement of goods, including:
• Fixed infrastructure such as ports or terminals
• Means of transport such as ships and barges
• The organizations needed to ensure that ships and permanent
infrastructure are used efficiently and effectively

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Overview of maritime transport

 Sea transport is the most important mode of freight

transport in Vietnam today.
 The sea transport industry has been developed for a long
time, Van Don trading port was officially established under
the reign of King Ly Anh Tong in the 10th year (1149).
 As of April 2, 2021, the whole country has 286 ports, of
which Hai Phong is the locality with the most ports (50
ports), followed by Ba Ria - Vung Tau province (45 ports)
and Ho Chi Minh City ranked third (43 ports).

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Overview of maritime transport

 Regarding transport routes, Vietnam has now established
32 shipping routes
 25 international transport routes
 7 domestic transport routes
 In 2020, the volume of goods transported by maritime
transport is 152277.2 million tons km, equivalent to about
54% of the volume of goods transported (General
Department of Statistics).

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Market structure

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Characters of maritime transport services

 High efficiency: With a large vessel capacity, economies of scale are an
important feature of deep-sea shipping, making it a fairly economical
mode of transport (cost of maritime transport = 1/5 that of railroad
transport, 1/10 that of landroad transport, 1/30 that of air transport)
 Suitable for transporting large volumes of goods: this mode of
transport is especially suitable for transporting large quantities of
products, as in the case of intercontinental flows.
 The average moving speed is quite low, so only products with a
relatively long life cycle are shipped by sea.
 Transportation of short-life products is only possible if we can extend
their life-cycle, for example, by using refrigerated vessels to transport
food.

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4.3. Terminals and operation

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Seaport

• Ports are places where there are facilities for berthing or anchoring
ships, and where there is handling equipment to handle cargo
transfer from ships to shore, shore to ships, or ships to ships.
• In container ports, the major components are: Quay, Container Yard,
Container Freight Station, Interchange Area, Gate Facility, Railhead,
other components

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Seaport

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Major components at container seaport

• Quay
• Container Yard
• Container Freight Station
• Interchange Area
• Gate Facility
• Railhead
• Other components

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Major components at container seaport

Quay
• A quay is an essential facility where vessels berth to discharge and
load containers.
• With the deployment of super post-Panamax ships, a length of about
250–350 m with a depth of 15–16 m of water alongside can be
considered about right

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Major components at container seaport

Container Yard
• A container yard typically takes up about 60–70% of the total terminal
area.
• It is primarily used to stack containers awaiting onward movement.
• Containers are stored in well-marked and numbered blocks.
• Blocks are linked by roadways and aisle ways along which vehicles and
equipment travel.
• Some blocks are reserved for export containers (normally near the sea side
of the yard) and some blocks are reserved for import containers.
• Another area is reserved for stacking empty containers
• Some stacking areas are set aside for special containers, such as reefers,
out-of-gauge cargoes, and dangerous cargoes.
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Major components at container seaport

Container Freight Station
• Not all container terminals have a container freight station.
• Inbound containers are unpacked in the container freight station and
the separated consignments of cargo are stored awaiting collection.
• Outbound consignments are consolidated and packed into empty
containers before being moved to the container yard for shipment.
• The container freight station consists of a covered area and open
areas for storing cargoes.
• Some areas are set aside for various inspection functions such as
customs’ examination of containers and their contents.

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Major components at container seaport

Interchange Area
• An interchange allows road vehicles to deliver and collect containers.
There are two types of interchange areas:
- The interchange is a separate area. Containers are brought to or taken
from road vehicles parked at slots at the interchange by transfer
equipment.
- The interchange is a series of lanes running along one side of each
storage space. Road vehicles are permitted to drive into the container
yard and to take and collect their containers at positions alongside the
stacks, where stacking equipment lifts and lands the containers.
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Processes at Container Terminals

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Physical Flows in the Container Transport Chain

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End of lecture 4

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