Transportation and The Spatial Structure

Transportation and the Spatial
Structure
CHAPTER 2
Copyright © 1998-2020, Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University,
Hempstead, NY, 11549 USA.
Jean-Paul.Rodrigue@hofstra.edu
You may use the figures within for educational purposes only. No modification or redistribution permitted.
For more information: https://transportgeography.org/
Copyright © 1998-2020, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be
published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
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Copyright © 1998-2020, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot
be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Table of Contents
• The Geography of Transportation Networks
• Transport and Spatial Organization
• Transportation and Location
• Information Technologies and Mobility
Copyright © 1998-2020, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain
and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
The Geography of
Transportation Networks
Types of Networks and Flows (under construction)
Physical / structural Continuous / Discontinuous
Relational / virtual Symmetrical / Asymmetrical
Balanced / Imbalanced
Distribution
Network Options
Least Cost to Use Least Cost to Build Hybrid
A B A B A B
C D C D C D
Maximum High Travel

Connectivity Costs AC, BD
Network Structures
Centralized Decentralized Distributed
Structural Components of Transport Networks
FEEDER
GATEWAY
Flow
CORRIDOR
NODE Mode B Mode A
Link
HUB
Centrifugal and Centripetal Networks
Centrifugal Centripetal
Point-to-Point and Hub-and-Spoke Networks
Point-to-Point Hub-and-Spoke
Hub
Cost Structure of Point-to-Point and Hub-and-Spoke Networks
Point-to-Point Total Costs Hub-and-Spoke Total Costs
3,000
550 550
3,000
525 52
5
3,000 1,550
3,000 525 52
5
550 550
3,000
Total: 15,000 Total: 5,850
Detour Level in a Hub-and-Spoke Network
A D
B C
Impacts of Integration Processes on Networks and Flows
Before Integration After Integration
Network
International border
Flows
Transportation Network Efficiency and Resilience
Efficiency Resilience
Cost, Revenue and Level of Network Coverage
5 4 Cost: 10
A 10 Revenue: 15
3 Benefit: 5
7
Cost: 12
B Revenue: 18
Benefit: 6
Cost: 14
C Revenue: 25
Benefit: 11
Cost: 19
D Revenue: 29
Benefit: 10
Transport Rates and Network Structure
Diffused Centralized
Rate
Low
High
Topology of a Network
Link Unidirectional link

Bi-directional link
Node
Network Topologies
Mesh Hub-and-Spoke
Linear Tree
Network Geometry and Number of Links
For each node to be linked to another node For all the nodes to be linked together
Even number of nodes Odd number of nodes
n-1 = 5
n/2 = 2 (n+1)/2 = 3
For each node to be linked to all other nodes Number of possible combinations
n(n-1)/2 = 10 2n(n-1)/2 = 8
Topology and Network Connectivity
Fully Connected Network

Average Path Length
B C
D
Minimum Network
Geographic Barrier
Network Length
Typology of Transportation Networks
Abstraction level Relative location Type of traffic Volume and direction
Continuous r 8000 t/h

3500 t/h r
Divided
Concrete Abstract
Orientation and extent Number of edges and nodes Load and capacity Type of correspondence
1 4 0.3 Hierarchical Non- hierarchical
3 0.9
7 6 5
4 0.7
2 1
5 0.5 0.7
3 2 6
Modes and Terminals Distance, road type and control Pattern Change (dynamics)
Railyard Port Highway Secondary road
Maritime Linear
Rail 100
Road 50 Mesh Random
Depot 125 km
90 km
Transport Networks and Space
Transport Network
Space
Accessibility
Mode of Territorial Occupation by Transport Networks
Overlap
Air corridor
Rail erv ice”
“No s
Road
Cellular coverage
arit im e c orridor
M
Clearly Defined Vaguely Defined Without Definition
Network Strategies to Service a Set of Locations
A B C
D E F
Absolute and Relative Distance in a Network
Absolute Distance Relative Distance
10 km 30 minutes
Networks and Spatial Continuity
Spatial Continuity by Transportation Mode
Ubiquity Fractionalization Instantaneity
Automobile High (road coverage the None (1 passenger = 1 High (available on
most extensive) movement) demand)
Transit Average (within Average (bus loads or train Average to high (fixed high
metropolitan areas) loads) frequency schedules)
Air transport Limited to airports Average (plane loads from Average (fixed schedules
(common) 50 to 500 passengers) and connections)
Maritime Limited to ports (rare) High (ship loads, reinforced Low (fixed schedules and
by economies of scale) connections)
Rail Limited to rail terminals Average (train loads) Average (fixed schedule)
(common)
Pipeline Limited to network Low (continuous flow) High (continuous flow)
Networks as Tools of Spatial Cohesion (Control)
Period Emerging Network Outcome
Pre-colonial Fluvial, coastal and road Empire building
Colonial Era Maritime Trade, exploitation and political

control
19th Century Canal and rail Nation building, commerce and
political control
20th Century Highways and air National and transnational

integration
21st Century Telecommunication Global supply chains
Transport and Spatial
Organization
Transportation Infrastructures and their Constraints
Physical and Environmental • Conventional physical constrains impacting transport infrastructure.

• Climate constraints and weather disruptions.
• Transport infrastructure designed to meet a specific demand level.

Demand • Variations in the demand and accidents can create bottlenecks.
Financing • Transportation infrastructure are capital intensive.

• Securing financing can constrain infrastructure development.
Construction and Maintenance • Construction and maintenance of infrastructure create disruptions in

existing operations.
• Restrictions about how transport infrastructure can be developed,

Regulations
owned and operated.
• Pressures from advocacy groups.
Scales of Spatial Organization for Transportation
Global Regional Local
Nodes Gateways and hubs (airports and ports) Metropolitan areas Employment and commercial activities
Links Air and maritime routes Corridors (rail lines, highways, canals) Roads and transit systems
Relations Investment, trade and supply chains Urban system and hinterland Commuting and distribution
Core / Periphery Division of the World
Trade, Connectivity and Spatial Inequalities
Pe
r iph Core
er
y
A B C
High
B
Inequalities
A Trade Intensity C
Low
Low Connectivity High
Forces of Geographical Concentration and Dispersion
Pole /
Centrifugal Centripetal
Cluster
Immobile factors Market size
Land rent Labor market
External diseconomies External economies
Factors of Polarization (under construction)
Network
Load break
Competition
Services
Agglomeration economies
Poles of the Global Economy
The Layers of Connectivity
Relations
Logistical
Functional Customer
Efficiency
Shipper
Logistical Flows
Fluidity
Demand Pull
Valorization
Transport Networks
Links
Infrastructural Infrastructural
Accessibility
Spatial
Locational Locational
The Relevance of Connectivity
Node
Connectivity
Connector
Effect Issue Stakeholders

BCO (importers and exporters),
Interactions, Costs,
Economic Producers, Retailers,
Opportunities
Wholesalers
Terminals, Modes, Shippers,
Network Capacity, Reliability, Resilience Logistics service providers,
Infrastructure managers
Hinterlands, Policy,
Spatial Civil society, Governments
Development, Inequalities
Accessibility and Connectivity
Accessibility Connectivity
Focus Traffic potential Transportation network (modes

(passengers and freight) and terminals)
Structure Market / Hinterland Gateways, hubs and links
Performance Space / Time Capacity, reliability, resilience
Governance Trade or commercial policy Logistics (transport) policy
The Components of Nodal Connectivity
Gateway or hub
(‘connector’)
Hinterland Connectivity Foreland Connectivity

Regional corridors (rail, Global air and
road, fluvial) maritime shipping
networks
Functional Variations in Connectivity
Hinterland Connectivity
Regional Hub Global Gateway
Regional Center Global Hub
Foreland Connectivity
Global and Hinterland Connectivity
Global Connectivity Hinterland Connectivity
Gateway or hub Terminal

Accessibility level
Intensity of interactions Corridor
The Three Tiers of Connectivity
Terminals (networks)
Distribution (supply chains)
Production and consumption (trade)
Gateways and Hubs
Intermodal Transmodal
r
o rrido
C
Gateway Hub
Mode A Mode B
Modal Gateways
Land
Logistics
Border
Manufacturing
Air
Maritime
Global Gateways Index, 2010
Global Gateways Index by Gateway Region, 2010
Pearl River Delta
Yangtze River Delta
Strait of Malacca
Rhine/Scheldt Delta
Dubai-Gulf
Seoul-Busan
Tokaido
Southern California
Shandong Peninsula
Taipei-Kaohsiung
Heligoland Bay
Beijing-Tianjin
BosWash
Fujian Coast
Shenyang-Dalian
Southeast UK
Bangkok
Cairo/Suez
Panama Containers
Paris-Le Havre
Air cargo
Ligurian Range
0% 2% 4% 6% 8% 10% 12%
Top 25 Gateways, Global Gateways Index, 2010
Johor Bahru
Tokyo
New York
Bangkok
Hamburg
Antwerp
Kaohsiung
Kuala Lumpur
Tianjin
Rotterdam
Qingdao
Ningbo
Guangzhou
Busan
Los Angeles
Dubai
Shenzhen
Hong Kong
Singapore
Shanghai
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%
Containers Air Cargo

Major North American Gateways, 2007
The Three Main Gateways of North America
Gateway System Gateways Total share (%) Imports / Exports ($ billions) 2007
Southern California Port of Los Angeles, Port of Long Beach, Los Angeles 17.4% $329.5 $108.1
International Airport, Otay Mesa (Port of Entry)
New York / New JFK International Airport, Newark Liberty International 13.5% $219.2 $121.3
Jersey Airport, Port of New York / New Jersey
Detroit Detroit (Port of Entry), Huron (Port of Entry) 8.5% $109.6 $104.1
Types of Hinterland Connectivity
C B A
Inland Center Gateway
Types of Bottlenecks
• Climate
Chronic • Under-investment
• Physical restrictions
Infrastructure
Bottlenecks • Weather
• Construction and accidents
Temporary • Demand surge
• Dis-investment
• Customs
Direct • Security
Regulatory • Compliance (quality, safety)
Bottlenecks • Cabotage
Indirect • Competition policy
• Fiscal policies
• Availability of conveyances
Capacity • Labor shortages
Operational
Bottlenecks • Productivity of modes and terminals
Efficiency • Labor skills
• Coordination
Main Transportation Bottlenecks
Capacity Bottlenecks Integration-Based Bottlenecks

Lack of terminal or connector capacity.
Customs clearance delays.
Lack or absence of intermodal options.
Cabotage restrictions.
Competition and fiscal policies.
Lack of clear mandate and jurisdiction.
Operational Bottlenecks Lack of coordination and cooperation.
Lack of logistical services.
Lack of logistical performance (cost, time
Distribution-Based Bottlenecks
and reliability). Lack of terminal or connector capacity.
Lack or absence of intermodal options.
Institutional Bottlenecks Lack of qualified labor.
Natural or man-made disruptions.
Lack of clear mandate and jurisdiction. Lack of investment and maintenance.
Lack of coordination and cooperation.
Transaction-Based Bottlenecks
Skills Bottlenecks Lack of logistical services.

Lack of logistical performance (cost, time
Lack of labor flexibility. and reliability).
Lack of qualified labor.
Lack of training programs.
Global Net Migration (2010-2015)
World's 250 Largest Corporations by Head Office City
World Cities, 2012
Criteria to be a World City (Foreign Policy)
Recognition First-name familiarity; a city is recognized without the need for a political subdivision (e.g. London, UK or Paris,
France).
Influence in international affairs Washington, Berlin, Brussels are major capitals of influence. New York; United Nations.
Large population Population of at least one million, typically several million.

Transport hub Major port and/or airport facilities. Several highways and/or a large mass transit network (rapid transit, light rail,
regional rail, ferry, or bus).
Large cultural communities Several international cultural groups and/or expatriate communities.
International institutions Financial institutions, law firms, corporate headquarters, international conglomerates, and stock exchanges (influence
on the global economy). Cultural institutions (museums and universities).
Media and telecommunications Several powerful and influential media outlets with an international reach. Advanced communications infrastructure
(fiber optics, Wi-Fi networks, cellular phone services).
International events An active cultural scene (film festivals, music or theatre scene, an orchestra, an opera company, art galleries). Major
sport events (e.g. Olympics, World Cup).
Criteria to be a World City (AT Kearney)
The economic weight of the city; headquarters of major multinational corporations, locations of top business services
Business activity firms, the value of capital (stock) markets, the number of international conferences, and the flow of goods through ports
and airports.
Capacity to attract and train talent; size of foreign-born population, quality of universities, number of international
Human capital
schools, international student population, and number of residents with university degrees.
The effectiveness of information flows; accessibility to major TV news channels, internet presence, number of
Information exchange
international news bureaus, level of censorship and broadband subscriber rate.
The cultural weight of the city; number of major sporting events, number of museums, performing-arts venues, culinary
Cultural influence
establishments, number of international travelers and number of sister-city relationships.
The level of influence on global politics; number of embassies and consulates, major think tanks, international
Political engagement
organizations and local institutions with international reach, and the number of political conferences.
Delimitation and Variations in Market Areas
A
3
x 1
y 2
3 x’ x 1 y y’ 2
3 x’ x 1 y y’ 2
The Spatial Setting of Market Areas
Radial Market Areas Optimal Coverage with Radial Market Areas
From Radial into Hexagonal Market Area Optimal Coverage with Hexagonal Market Areas
Central Places Theory (k=3)
B B
B B B
Order
A A A B C
Market area
B B B
B B
Market Size / Area Relationships in the Central Places Theory
P o p u la tio n o f M a rk e t A re a (m illio n s )
Order Radius (km) Town Population Market Population
M (Marktort) 4 1,000 3,500

4,000,000.0
A (Amtsort) 6.9 2,000 11,000
3,500,000.0
3,000,000.0
K (Kreisstadt) 12 4,000 35,000
2,500,000.0 B (Bezirkstadt) 20.7 10,000 100,000
2,000,000.0 G (Gaustadt) 36 30,000 350,000
1,500,000.0
P (Provinzstadt) 62.1 100,000 1,000,000
1,000,000.0
L (Landstadt) 108 500,000 3,500,000
500,000.0
0.0
0 20 40 60 80 100 120
Market Area Radius (km)
Variations of the Central Places Theory
Marketing Principle Transport Principle Administrative Principle
K=3 K=4 K=7
Central Places and Transport Places
Central Places Transport Places
ge
Ran
in
nta
u
Mo
r
ve
Ri
Urban Hierarchy
Christaller
1
nce
D o mina
g
Stron We
2 ak
Do
mi
na
nc
e
3
Pred
1
2 Interdependency
ty
n t ari
e
p lem
3 C om
Growth Poles Theory
The Setting of a Growth Pole Emergence of a Secondary Growth Pole
Growth Pole Secondary Growth Pole
Core Industry Secondary Industry

Linked Industry Linked Industry
Core-Periphery Stages of Development in a Urban System
Core
Periphery Periphery
2
Conceptual Corridor Development
A B C
D E F
Transport Corridors and the Regional Spatial Structure
A B C
Order Specialization and Gateway

interdependency
High Low High Low Flows
Main North American Gateways, Corridors and Inland Freight Clusters
Land Use Value by Activity Sector in Function of the Distance from the CBD
Land Use Value Commercial

Multi Family Residential
Single Family Residential
Distance from CBD
Central Places in Urban Areas
2 3
4
4
4 3 1) CBD
2) Regional Center
2
3 3) Neighborhood Center
4
1 4) Local Center
3
4
Major axis
4
3
4 Minor axis
3
2
4
Transportation and Location
Strategic Decision Making in Location
PRODUCT What to produce or sell?
INPUTS How to produce? SPACE Where to produce?
MARKETS For whom and in what quantity?
Traditions in Location Theories
Neo-classical Location subject to free market forces.
Behavioral Behavior of individual business. Decisions are made with limited information. Sub-optimal location choice.
Institutional External factors such as values and institutions. Mergers and acquisitions.
Economic base Related to the export industries of a region.
Location factors Specific location factors. Agglomerations of economic activity. Regional characteristics.
Cumulative causation Upward spiral where success breeds success (lack of success can lead to a downward spiral).
Core-periphery Regional functions. Relationships between core regions and peripheral ones.
Industrial district Focus on networks, entrepreneurship, innovation, co-operation, flexible production and specialization.
Innovative milieu Importance of the cultural and institutions (synergies among local actors which give rise to fast innovation processes).
Competitive advantage Competition between locations subject to factors related to labor, energy, resources, capital as well as proximity to markets.
Historical Urban Location Factors
Defense Commerce
River-meander site River-island site

Bridge-point site Confluence site
Rapid or
waterfall
Portage site
Peninsula site Sheltered harbor site Head of navigation site
(or offshore island)
City Fortifications Road
Factors in Urban Location
Connectivity Proximity Accessibility
The Location Spectrum
Non-material inputs
(Labor, Capital, Technology,

Policies, Regulations)
Location factors
Outputs Material Inputs

(Markets, Customers) (Resources, Parts, Energy, Land)
Behavioral Approach to Location
Information Territory
Capacity to Use Spatial margins of profitability
C35
C11 C1n C22 C54
Cnn
Cnn C11
C22
Availability
C54 Profitability
C35
Costs
Cn1 Cnn Revenue
Homo oeconomicus
Basic Location Factors
Location
Land, utilities, visibility, transportation

(local access), amenities Site
Micro (local)
Labor, materials, energy, markets,

suppliers / customers Accessibility
Meso (regional)
Capital, subsidies, regulations,

taxation, technology
Socioeconomic Environment
Macro (national)
Industrial Location Factors
Physical Human and Economic
Raw materials The factory needs to be nearby if they are heavy and bulky to transport. Labor A large cheap labor force is required for labor-intensive manufacturing industries.
High-tech industries must locate where suitable skilled workers are available.
Energy supply. Early industries were near to coalfields. Today, electricity allows more •Market An accessible place to sell the products is essential for many industries: those that
freedom. produce bulky, heavy goods that are expensive to transport
•those that produce perishable or fragile goods
•those that provide services to people
The market is not so important for other industries such as high-tech whose products are
light in weight and cheap to transport. Such industries are said to be 'footloose'.
Natural routes River valleys and flat areas were essential in the days before railways and Transport A good transport network helps reduce costs and make the movement of
motorways made the movement of materials easier. materials easier.
Site and land Most industries require large accessible areas of cheap, flat land on which to Cost of land Greenfield sites in rural areas are usually cheaper than brownfield sites in the
build their factories. city.
Capital This is the money that is invested to start the business. The amount of capital will
determine the size and location of the factory.
Government policies Industrial development is encouraged in some areas and restricted in

others. Industries that locate in depressed ('Development') areas may receive financial
incentives from the government and assistance from the EU in the form of low rent and
rates.
Factors Affecting Location Decisions
Country Factors Region Factors Local Factors
•Government rules, attitudes, political risk, •Attractiveness of region (culture, taxes, •Site size and cost
incentives climate, etc.) •Air, rail, highway, and waterway systems
•Culture & economy •Labor, availability & costs •Zoning restrictions
•Market location •Costs and availability of utilities •Nearness of services / supplies needed
•Labor availability, attitudes, productivity, •Environmental regulations of state and •Environmental impact issues
and cost town
•Availability of supplies, communications, •Government incentives
energy •Proximity to raw materials & customers
•Exchange rates and currency risks •Land/construction costs
Locational Changes in Manufacturing
Production
Employment
X
1 3
Intensification Concentration
Rationalization and
Specialization relocation
2 4
X
Product A
Product B
Product C
Product D
X Closing X X
Main Types of Economies in Production, Distribution and Consumption
Production Distribution Consumption
Economies of Lower unit costs through Lower unit distribution costs Lower unit output costs
accessibility to suppliers through transport chains through accessibility to
transportation and customers management suppliers and customers
Economies of Lower unit costs with larger Lower unit transport costs Lower unit costs with larger
plants through larger modes and retail outlets
scale terminals
Economies of Lower unit output costs with Lower transport costs with Product diversification
scope more product types bundling of different loads attracts more customers
Economies of Industrial and service Lower input costs with Lower input costs with
agglomeration linkages with manufacturing clustering of distribution clustering of retail activities
clusters activities
Economies of Increased accessibility to Lower unit distribution costs Increased accessibility to

labor (skills) with higher with higher densities goods and services with
density
densities higher densities
Main Location Factors for Distribution Activities
Influences Factors
• Relative availability and cost of land and labour at port or inland location
Production and transport
economics • Danger of diminishing returns such as congestion, energy and empty movements.
• Congestion in the port and access infrastructure.
Capacity and congestion • Quality and capacity of hinterland connections.
• Availability of inland distribution centres, custom clearance, container depots and logistics facilities.
• Trade structure of the region: physical geography, resource endowment, centrality/ intermediacy, mix of foreign and locally sourced inputs, regional specialisations,
history of the region.
Market structure and trade
strategy • Degree of vertical cooperation and integration between port and inland transport operators
• Strong port competition driving new initiatives to extend their cargo base, either by securing hinterlands or by anchoring tenants at the port.
• Supply chain strategy of local shippers and distributors (e.g. push vs pull, high or low inventory, primary/secondary distribution needs). Integration of inland terminals
Supply chain management within supply chain management practices (e.g. acting as stock buffers).
• Dominance of merchant vs carrier haulage in the region.
• Economic development strategies of public sector agencies leading to favourable land use policy, zoning, financial incentives.
Policy and regulation • Policies related to foreign trade zones and customs procedures.
• Cargo safety and security procedures.
Basic Location Strategies
Costs Minimization
Costs
Revenue
Profits Profit Maximization

Costs
Revenue
Profits
A O1 B
Revenue Maximization
Profits
Revenue
A O3 B
Costs
A O2 B
Accessibility and Location
Concentric Circles
Site Accessibility
3
T1
A B 2
1 T2
Accessibility Requirement
Linear Buffers
The Four Main Locational Influences of Transportation
Transport Costs Agglomeration Economies
Economies of Density Co-Location
Weber’s Location Triangle
w(M)
M
d(M)
P
d(S2)
S2
d(S1) w(S2)
S1
w(S1)
Transport Costs Surfaces and Location
$
00
3,0
M
4,00
0 $ 2,000 $
0$
3 , 00
1,000 $
1,000 $
P
S2
2,00
0 $
S1
1,0
2,0
00
00
$
$
Economies of Agglomeration
Q R
Types of Manufacturing Clusters
Marshallian Industrial Cluster Hub-and-Spoke Cluster Satellite Platform Cluster
Large firm
Suppliers Customers
Branch plant
Small local firm
Transport and Co-Location
Co-Location Zone
Activity
Terminal
Information Technologies and
Mobility
Organizational Forms in Human Societies
Agricultural (First Wave) Industrial (Second Wave) Information (Third Wave)

• Hierarchy based on heredity • Vertically oriented bureaucracies • Networked bureaucracies
• Feudal structures • Democratic representation • Multilateral consensus
Global Media Systems
Media access to the private home. First

Newspapers Emerged with the printing press and Radio
movable types (17th century). Many radio shows: to sell radios and consumer
1630s specializations (general and financial). 1920 goods (“soap operas”). Rapid diffusion of
news / portable.
Magazines Periodicals (weekly, monthly) focusing on TV / Cable Visual access to the private home.
specific topics (events, politics, people, Richer content. Specialization of
1730 1945 / 1980
fashion, technology). channels (cable).
News Global digital information exchange.

Provide news to the media (Reuters, Internet
agencies Media rich environment. Video
Bloomberg, Associated Press, Agence
1990 streaming (1995) and video on demand
1835 France Presse).
(1998).
Movies “Theatre for the masses”. Quick and low- Mobile phones / Portable telecommunication / Portable
cost diffusion of entertainment. Current Smartphones media access. Multifunctional device
1910 news (pre shows). 1983 / 2001 (camera, recorder, GPS).
The Myth of the Dematerialization of the Economy
Platform Corporation E-Commerce Asset Management

• Focus on core competencies • Lessen the footprint of retail • Manage existing assets more
• Outsourcing low added value stores efficiently.
activities • Developing a network of • Developing platforms connecting
distribution centers the supply and demand of
services.
Apple focuses on product design Amazon owns a network of e- Uber links users with individual car
and retailing (Apple Store). Relies fulfillment centers (distribution owners willing to provide a taxi service.
on a massive network of original centers) processing large volumes of Airbnb links users with property
equipment manufacturers. cargo (orders). It also operates parcel owners.
delivery services.
The Substitution and Generation Effects of Information Technologies on
Mobility
Virtual Activity Substitution Generation
Telecommuting Commuting trips
Distance Learning Trips to educational institutions
Online Banking Trips to financial institutions

New discretional trips due to time
savings
Social Media Trips to social events
Teleconferencing Trips to conference venues
Virtual Entertainment Trips to event venues
Trips to stores Logistics and deliveries to new

E-commerce
Store deliveries destinations
Electronic Documents Courier trips, Mail deliveries Flows

Passengers Freight
Monitoring Professional and work trips
Mail Carried by USPS and Parcels Carried by Major Carriers, United States, 2004-2018 (in billion units)
230 7
210
6
190
5
170
First Class Mail Volume
Billions (Parcels)
150 4
Billions (Mail)
Total Mail Volume

Parcels (USPS)
130 3 Parcels (UPS)
Parcels (FedEx)
110
2
90
1
70
50 0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Online Retail Sales as Share of Total Retail Sales, 2012
India
Mexico
Turkey
Russia
Brazil
Japan
China
France
Germany
Australia
USA
UK
0 2 4 6 8 10 12
Information Technologies and the Corporate Structure
Head Office
Head Office
Division
ICT
Unit A (Offshoring) B
Possible Impacts of ICT on Mobility (under construction)
Substitution
Expansion Contraction
Complementarity
Factors behind the Impacts of ICT on Mobility Mitigation
No ICT counterpart Mobility cannot be substituted. Mandatory co-location.
No practical or desirable ICT Mobility can be substituted, but outcome much less practical.
counterpart
Positive utility of mobility
ICT not a replacement for
travel
Time and cost substitution
Cheaper mobility
Efficiency improvements
Travel productivity
Additional travel demand
Globalization
Decentralization
The Digitalization of Mobility
Access Devices Entry and interaction with information systems
Geospatial Services Real-time locational information

Physical
Communication between elements of the
Connectivity Networks
information system
Digital Open Data Exchanges Data exchange between elements of the

information system
Integrated Payments System to settle transactions
Services Cloud Services Receive, store and retrieve large databases
Blockchain Encrypt transactions and events in a ledger
Forms of Digitalization in Freight Transportation
Goods Conveyances
• Sensors.
• RFID. • Navigation.
• Sensors. • Routing.
• Vehicle automation.
Infrastructure Business process
• Sensors. • Electronic data

• Traffic management. exchange.
• Terminal automation. • Blockchain.
Mobility as a Service (Digitalization)
Device / Users
Corporations
Public Authorities
Mobility Platform
ICT Service Providers
Transportation Service Providers

Digital Freight Platform
Operators
BCO
Public Authorities
Freight Platform
ICT Service Providers
Transportation Service Providers

Key Information Technology Drivers in Freight Distribution
Freight Visibility (Tracking) Freight Information Exchange

• Improve the reliability of supply chain management. • Information exchange using web-based technologies and
• Status and locations of shipments (vehicles, rail cars, electronic data interchange (EDI).
containers and individual loads). • Real-time terminal information systems.
• Mobile communications and Global positioning systems • Blockchains.
(GPS).
• Radio-frequency identification (RFID) tags and bar codes.
Asset Management Regulatory Compliance

• Maximize equipment utilization. • Pre-screen shipments and direct low-risk freight to quick
• Equipment location (tractors, trailers, rail cars, containers, clearance.
ships). • Enhance security at international borders.
• Real Time Locating Systems (GPS and RFID tags). • Electronic pre-notification of shipment information.
• Status monitoring of vehicle and cargo conditions.
Efficiency Improvements
• Improve productivity and reduce data errors.
• Verification and exchange of shipment information.
• Non-intrusive inspection and information technologies
such as optical character readers (OCR), RFID tags and
bio-metrics (to identify drivers).

Transportation and The Spatial Structure

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Transportation and The Spatial Structure

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Transportation and the Spatial

Physical / structural Continuous / Discontinuous

Relational / virtual Symmetrical / Asymmetrical

Least Cost to Use Least Cost to Build Hybrid

Maximum High Travel

Centralized Decentralized Distributed

Point-to-Point Total Costs Hub-and-Spoke Total Costs

Total: 15,000 Total: 5,850

Before Integration After Integration

Link Unidirectional link

Fully Connected Network

Abstraction level Relative location Type of traffic Volume and direction

Continuous r 8000 t/h

Clearly Defined Vaguely Defined Without Definition

Absolute Distance Relative Distance

Colonial Era Maritime Trade, exploitation and political

20th Century Highways and air National and transnational

Physical and Environmental • Conventional physical constrains impacting transport infrastructure.

• Transport infrastructure designed to meet a specific demand level.

Financing • Transportation infrastructure are capital intensive.

Construction and Maintenance • Construction and maintenance of infrastructure create disruptions in

• Restrictions about how transport infrastructure can be developed,

Global Regional Local

Immobile factors Market size

Land rent Labor market

External diseconomies External economies

Effect Issue Stakeholders

Focus Traffic potential Transportation network (modes

Governance Trade or commercial policy Logistics (transport) policy

Hinterland Connectivity Foreland Connectivity

Regional Hub Global Gateway

Regional Center Global Hub

Global Connectivity Hinterland Connectivity

Gateway or hub Terminal

Distribution (supply chains)

Production and consumption (trade)

Containers Air Cargo

Inland Center Gateway

Capacity Bottlenecks Integration-Based Bottlenecks

Skills Bottlenecks Lack of logistical services.

Large population Population of at least one million, typically several million.

Order Radius (km) Town Population Market Population

M (Marktort) 4 1,000 3,500

2,500,000.0 B (Bezirkstadt) 20.7 10,000 100,000

2,000,000.0 G (Gaustadt) 36 30,000 350,000

Market Area Radius (km)

Marketing Principle Transport Principle Administrative Principle

K=3 K=4 K=7

Central Places Transport Places

The Setting of a Growth Pole Emergence of a Secondary Growth Pole

Growth Pole Secondary Growth Pole

Core Industry Secondary Industry

Order Specialization and Gateway

Land Use Value Commercial

Distance from CBD

PRODUCT What to produce or sell?

INPUTS How to produce? SPACE Where to produce?

MARKETS For whom and in what quantity?

River-meander site River-island site

City Fortifications Road

Connectivity Proximity Accessibility

(Labor, Capital, Technology,

Outputs Material Inputs