Month: December 2017

Advantages And Disadvantages Of Intermodal Freight Transportation

Intermodal freight transportation involves moving freight by using two or more modes of transportation. Typically, transportation modes include truck, railroad and steamship. Although transportation by air also is possible, the method is costly. Intermodal freight transportation positively influences our global economy by controlling the way we move our goods. Nevertheless, some factors need to be kept in consideration to avoid restricting the value of intermodal fright transportation.

A truck moves an empty container to the shipper. The shipper loads the container with goods. The truck transports the loaded container to port. At the port, the container is loaded onto the steamship, which is forwarded to the port of destination. The container is driven to the warehouse of the receiver shortly after being discharged at the port of destination.

Intermodal freight transportation gives you flexibility with how you want to move your freight. Additionally, you have the opportunity to be creative in finding the most efficient way to move your freight. Generally, this process involves at least two modes of transportation. The more efficiently you plan, the more money you will save.

Intermodal freight transportation may be costly depending on the number of modes of transportation. Some downfalls to intermodal freight transportation involve the high costs that are associated with moving freight by using several types of modes of transportation. Lack of communication and idle time of equipment will increase transportation costs. Similarly, equipment that moves from one location to another empty also adds to the costs.

A supply chain is defined as three or more organizations that are directly linked upstream or downstream in the flow of products or services as they move from the source to the customer. Intermodal freight transportation plays a major role in enabling organizations in a supply chain to respond to market changes by providing them with options. Organizations within a supply chain use intermodal freight transportation to cooperate and assist each other in maximizing profits. This cooperation is achieved by sharing information and communicating their needs to each other.

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Transportation Industry Analysis on the Value Chains of Chinese Railway Transportation Industry,

The railway industry is an important part of China’s economy. The key investment point of China’s railway is the railway construction. 60% of the fixed asset investments are used to the constructions of railway lines. From 2008 to 2020, China will newly construct 40-thousand-kilometer railways with the total investments breaking through 5 trillion Yuan (730 billion USD). According to Chinese government’s plans, the approved railway construction will be about 10 thousand kilometers with the investment scale of 1 trillion Yuan (146 billion USD) in 2009 and another 10 thousand kilometers with the investment scale of 1 trillion Yuan (146 billion USD) in 2010. The railway projects in the plan can be divided into three big categories: One is the Beijing-Shanghai railway express, the passenger railway lines and interurban railways from Beijing to Guangzhou, Harbin to Dalian, Tianjin to Qinghuangdao, Ningbo to Wenzhou, Wenzhou to Fuzhou, Fuzhou to Xiamen and Nanjing to Shanghai etc. By 2010, the construction scale will reach to more than 16 thousand kilometers. The other is the coal transportation railways, including Baotou to Xi’an, Taiyuan to Zhongwei (Yinchuan) and Zhungeer to Shuozhou etc. by 2010, the construction scale will be near 10 thousand kilometers. After the completion of the coal transportation railways, Chinese coal transportation capacity will be enhanced greatly and the coal transportation tension especially the coal for electricity will be eased. Another is the western main line railway projects for the resource exploitation, including Guizhou to Guangzhou, Nanning to Guangzhou, Lanzhou to Chongqing and Hetian to Kashi with the construction scale exceeding 15 thousand kilometers in 2010. Through these projects and the technology reforms of the present railways in the central, western and northeastern regions, the railways will be covered more Chinese lands and strengthened the transportation infrastructure in the central and western regions. The investments in Chinese railways are characterized as large investment amounts and long industry chains. In 2009, the investments in the railway infrastructure are planning to finish 600 billion Yuan (87.6 billion USD). The investments will create 20-million-ton steel product demands, 120 million tons of cements and 6 million employments. It is predicted that the investments in Chinese locomotive purchase are about 300 billion Yuan (43.8 billion USD) in 2009 and 2010.

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