Transport Nodal System

Transport Nodal System

Adolf K.Y. Ng

Changmin Jiang

Paul Larson

Barry Prentice

David Duval

Table of Contents

Cover image

Title page

Copyright

About the Authors

Preface

Chapter 1. Introduction

1.1. Setting the Scene

1.2. The Structure of the Book

Chapter 2. Transport Networks and Impacts on Transport Nodes

2.1. Introduction

2.2. Gateway, Hub, and Corridor Creation and Growth

2.3. Development of Maritime–Land Transport Networks

2.4. The Economics of Transshipment and Industrial Location

2.5. Summary

Chapter 3. Measuring Transport Nodes and Nodal Systems

3.1. Introduction

3.2. Graph Theory in Measuring the Importance of Transport Nodes

3.3. Case Study: The Chinese High-Speed Rail System

3.4. Conclusion

Chapter 4. Policy and Regulations of Transport Nodes and Nodal Systems

4.1. Introduction

4.2. Geographic and Economic Assessments of Airport Nodes

4.3. Regulatory, Legal, and Policy Issues Relating to Airport Nodes

4.4. Airport Regulation in Canada

4.5. Conclusion

Chapter 5. Congestion in Transport Nodes and Nodal Systems

5.1. Introduction

5.2. Checked Bags, Airline Market Power, and Airport Congestion

5.3. Congestion Knock-On Effect: The Case of Container Shipping

5.4. Conclusion

Chapter 6. Planning Transport Nodes and Nodal System Projects

6.1. Introduction

6.2. The Role of Institutions in Transport Project Planning

6.3. Site Selection for the Kai Tak Cruise Terminal

6.4. Construction of the CentrePort Canada Way

6.5. Conclusion

Chapter 7. Sustainability and Resilience of Transport Nodes and the Nodal System

7.1. Introduction

7.2. Background

7.3. The Differences Between Climate Adaptation and Mitigation

7.4. Case Study: Port of San Diego, California, USA

7.5. Discussions

7.6. Conclusion

Chapter 8. Transport Nodes and Supply Chain Sustainability

8.1. Introduction

8.2. What Is Supply Chain Sustainability?

8.3. Inland Ports as Transport Nodes

8.4. Inland Ports and Sustainability: Examples From Western Canada

8.5. The Marketing of Inland Ports

Chapter 9. Innovation in Transport Nodes and Nodal Systems: Airship Transport Systems and Aerodrome Requirements

9.1. Introduction

9.2. Logistical Demand for a New Transport Mode

9.3. Airship Gateways to the North

9.4. Airship Hubs and Infrastructure Requirements

9.5. Interface of Cargo Airships and Other Transport Modes

Chapter 10. Climate Change and Its Impacts: Opening Up the Arctic Seas for Maritime Transport

10.1. Introduction

10.2. Economic Viability

10.3. The Attitudes and Perception of Maritime Transport Stakeholders

10.4. Other Significant Factors

10.5. Conclusion

Index

Copyright

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About the Authors

Adolf K.Y. Ng is a Professor of Transport and Supply Chain Management at the University of Manitoba and the Director of their Transport Institute. He obtained his DPhil from the University of Oxford. He is a coeditor of Climate Change and Adaptation Planning for Ports (Routledge, August 2015), a coauthor of Port-Focal Logistics and Global Supply Chains (Palgrave Macmillan, February 2014), and the author of more than 60 journal articles. Currently, he is the Associate Editor of Maritime Policy & Management, Senior Editor of the European Journal of International Management, Coeditor of the Journal of Transport Literature, Associate Editor of The Maritime Economist, an Editorial Board Member of several reputable scholarly journals in transport and logistics, and a Council Member of the International Association of Maritime Economists (IAME).

Changmin Jiang is Assistant Professor of Transport and Supply Chain Management at the University of Manitoba and an Associate of their Transport Institute. He is considered one of the leading worldwide young scholars of aviation, rail, and maritime transport economics and policy.

Paul D. Larson, PhD is the CN Professor of Supply Chain Management at the University of Manitoba. He is also currently a Distinguished Senior Fellow/Professor in SCM and Social Responsibility at Hanken University. From 2005 to 2011, he was Head of the SCM Department and Director of the Transport Institute at the University of Manitoba. From 2006 to 2009, he led a curriculum development team, creating a new accreditation program for the Purchasing Management Association of Canada (PMAC), which has since merged with Supply Chain Logistics Canada to become the Supply Chain Management Association (SCMA). The Institute for Supply Management (ISM), under its former name, National Association of Purchasing Management (NAPM), funded Dr. Larson's doctoral dissertation, which won the 1991 Academy of Marketing Science/Alpha Kappa Psi award. In 2012, working with the Greater Toronto Leadership Project, he wrote Supplier Diversity in the GTA: Business Case and Best Practices. Dr. Larson serves on the Editorial Review Boards of the Journal of Business Logistics, Journal of Supply Chain Management, International Journal of Physical Distribution & Logistics Management, and the Journal of Humanitarian Logistics and Supply Chain Management. On February 18, 2017, he stood at Uhuru peak, Tanzania, the highest point in Africa, for a second time. He can be reached via email at: larson@cc.umanitoba.ca.

Barry Prentice is a Professor of Supply Chain Management at the University of Manitoba, Associate of their Transport Institute, and Associate Editor of the Journal of Transportation Research Forum. He has authored or coauthored more than 250 research reports and journal articles, is former President of National Transportation Week, former Honorary President of the Canadian Institute for Traffic and Transportation, and former President of the Canadian Transportation Research Forum.

David Timothy Duval is an Associate Professor in the Faculty of Business and Economics at the University of Winnipeg. His academic work focuses on the economic and legal regulation of commercial air transport. He is the Editor of Air Transport in the Asia Pacific (Ashgate, November 2014).

Preface

When we were approached by the publisher with the idea of writing a new book, an immediate question was raised: with the rich history of transport research and associated publications (including our very own publications) that exist, what more can we realistically contribute? Any scholars who are actively involved in scholarly research would understand that it is never too difficult to gather some ideas and information, bind them together, and come out with a few hundred pages of words, figures, tables, and/or photos that can always raise the eyebrows of readers in some way, to some extent. Indeed, that's a core objective of scholarly research in general.

However, good scholars would usually ask a deeper, more philosophical question: by raising the eyebrows of readers, in what ways can readers be inspired so that they will be encouraged to do something to transform livelihoods? No matter we are talking about students, researchers, practitioners, policymakers, etc., one should understand and appreciate that the audience is not just a group of individuals but social beings, and their interpretation of ideas is always shaped and constrained by particular cultural, social, and institutional settings, not to mention day-to-day responsibilities and commitments. Even with the same contents, different readers may have very different expectations. For scholars and students, they may want to identify new research questions to develop new projects (and possibly secure new research grants); for industrial practitioners, they may want to get useful insight so that they can make better strategic decisions; for policymakers, they may want to know more about practices in other parts of the world that they can make reference to when developing policies of their own. Needless to say, much debate has already been undertaken on the suitability of the so-called western solutions to the developing world.

All these diversified expectations increase the trickiness of writing a good book because the impacts, and the true value, are so difficult to define. Understanding such, as core members of one of the most important transport research institutes in North America, we want to ensure that we are not just adding another few hundred pages of information on transport and transport research to raise the eyebrows of the audience; in reality, we don't even expect them to agree on every word that we have written. We hope that the readers can be inspired to an extent so that they will decide to do something that will make a real (hopefully positive) difference to improve the professional and other aspects of their lives in both the short and long term. Based on this objective, we wrote our book based on three principles, namely, richness (which addresses questions from different academic disciplines and experiences around the world to facilitate readers to think about a similar issue from different angles), clarity (which makes it easy for readers to understand), and innovation (which makes it easy to inspire readers to think about changing conventional, day-to-day practices for betterment). Wishful thinking and hopefully not too difficult to be understood by our readers?

As always, we would like to reserve a few lines for acknowledgments. First, as the first of its book series on transport research, we would like to thank the University of Manitoba Transport Institute in supporting this collaborative work in terms of financial and technical support. Second, we would like to thank the publisher, Elsevier, in offering such an invaluable opportunity. On a more personal note, the first author would like to thank his family's unconditional, continuous support for his dream of pursuing a successful academic career. Last but not least, of course, we want to thank our readers who have given a vote of confidence on our efforts. We genuinely wish that they enjoy reading the book and appreciate what we are trying to achieve.

Adolf K.Y. Ng

Changmin Jiang

Paul Larson

Barry Prentice

David Duval

September 18, 2017

Winnipeg, MB, Canada

Chapter 1

Introduction

Abstract

This chapter introduces the objective and focus of the book. It also introduces the chapters.

Keywords

Nodal systems; Transport

Contents

1.1 Setting the Scene

1.2 The Structure of the Book

References

1.1. Setting the Scene

This book is the first from the University of Manitoba Transport Institute (UMTI) Book Series that offers a comprehensive introduction to the contemporary development of transport nodes and nodal systems, including economics, operations, management, planning, policy and regulations, sustainability, and innovation. In this regard, transport node refers to any infrastructure or facility that facilitates the smooth operation of passengers and/or cargoes along transport networks and systems. Notable examples include, but are not restricted to, seaports, inland terminals (also known as dry ports), airports, highways, and railroads. As such, the focus of this book is not on the moving components of the transport systems (e.g., ships, trucks, trains). By undertaking an in-depth analysis of different types of transport nodes from diversified angles, including empirical case studies from both the developed world (e.g., Canada) and emerging economies (e.g., China), the book will enable readers to understand the major issues and challenges that transport node planners, managers, and policymakers are facing, and enable them to put their theoretical knowledge into practice.

With diverse backgrounds from Canada, China, and the United States, the authors are affiliated to two major universities located in the center of North America, namely, the University of Manitoba and the University of Winnipeg. All the authors are affiliated to UMTI, either as staff or associates, and possess rich research experience in nearly all modes of transport. Of course, the authors make no pretense that they are the first people to try to address the problems and issues of transport nodes and nodal systems. Indeed, far from it, with Brooks and Cullinane (2007), Cullinane and Talley (2006), Forsyth et al. (2010), Graham (2013), Liu (2012), Monios and Bergqvist (2016), and Young and Wells (2011) serving as illustrative examples. However, most of these stated works on transport nodes focus only on one particular type of node dedicated to a specific type of transport mode (e.g., ports), while many are also either highly technical or look at the issue from one or two narrowly defined angles (e.g., economics, governance). The contents of the aforementioned books, especially the edited ones, are often splintered and disconnected between different chapters. Indeed, it is not difficult to discover that a coherent message on transport nodes is sometimes lacking in these books. By inscribing the latest information and research outcomes, especially original research conducted by the authors, this book plays the role of an efficient channel in facilitating the transferring of the newest academic and original knowledge to researchers and practitioners, as well as bridging the gap between academic knowledge and professional practice. Also it stresses the importance of transport nodes in the development of efficient logistics and supply chains. Despite its criticality due to its nodal status, where different stakeholders within the transport and logistics sectors interact, transport nodes are one of the most overlooked components. Moreover, understanding that transport nodes, in nearly all cases, are geographically embedded within a particular location, their operation and management would inevitably be affected by local factors (e.g., culture, institutions, etc.). This is something that the aforementioned books, and indeed previous research, have largely overlooked. Understanding such deficiency, this book puts much emphasis on the dynamic interactions between nodes and transport systems.

A main feature is that this book is a pioneer attempt to identify transport node (rather than a specific type of infrastructure for a specific type of transport mode, e.g., seaport) as the primary focus of analysis. Through close collaboration between reputed transport scholars from diversified academic backgrounds specializing in different transport modes (land, maritime, and air), the book identifies the common attributes (or lessons learnt) that would contribute to the efficient operations, planning, and management of transport infrastructures and facilities in general, and establishes a strong framework for this purpose. Hence we believe that it poses substantial interest to researchers, policymakers, and industrial professionals involved in aspects of the transport sectors (e.g., port authorities, airport managers, highway planners, etc.). Readers can easily understand the major trends of development of transport nodes and nodal systems, and develop an effective approach and skills to address diversified challenges on the planning, management, and policymaking of different types of transport nodes. For researchers, the book can play a significant part in the inspiration of new research ideas, especially in geography, planning, economics, environmental studies, transport, logistics, and supply chain management. It is a quality companion to researchers, policymakers, and industrial practitioners and a solid platform for further research, planning, and development of appropriate policies and effective industrial practices in transport nodes and nodal systems.

In terms of pedagogy, this book is an ideal companion for graduate students (PhD, MBA, and Master's degree) who are pursuing courses and/or conducting research in sustainable transport and supply chains, including public policy and regional development, either as a major textbook or supporting reading material. Some examples of course and modules include transport infrastructure planning and management, transport strategy and policy, port and airport development, transport geography and economics, logistics management, global supply chains, environmental management, public policy, regional development, developmental economics, and assessment methodologies in transportation, to name but a few.

Before ending this section, it is noted that some of the contents of this book are based on several papers published in scholarly journals, including Lau et al. (2014) and Ng et al. (2015).

1.2. The Structure of the Book

The rest of this chapter introduces the contents of the book. Chapter 2 discusses transport networks and the impacts on transport nodes. A modern economy has overlapping transport networks, principally road, rail, air, and marine. Each mode of transport has its strengths and may be used exclusively in some circumstances, but more often two or more modes of transport are involved in the delivery of freight. Nodes are the locations where goods are transshipped from one mode to another. As a derived demand, transport networks expand to serve the needs of shippers and receivers. Larger population centers generate more demand and consequently are the best equipped with infrastructure to accommodate transportation. However, size is not all that matters. Some important nodes form at particular locations because of geographical and political barriers. Distance and terrain usually dictate the routes with less resistance, and in these areas corridors become established. The chapter presents the logistical rationale and economics for the formation of transport gateways, hubs, and corridors at specific locations. The growth and success of particular locations are explored with respect to changes in technology and input costs. These forces help to explain the integration of maritime–land networks, and how the fortunes of location can wax and wane for transshipment and industrial location.

Chapter 3 measures transport nodes and nodal systems. A transport system is a realization of spatial network, a structure of connected infrastructures that permits the flow of people and/or commodities. A global perspective of a transport system can be obtained from network analysis, typically using graph theory, the study of mathematical structures used to model pairwise relations between objects. A flow network in graph theory can, among other things, measure the relative importance of various nodes within a transport network, describe the relationship between these nodes, and demonstrate the structure of the network. Efficiency measurement methodologies, such as data envelopment analysis, are also useful tools for transport network analysis. Through these methodologies, we can compare the relative efficiencies of various nodes within a transport network. In this chapter, we apply these analytical tools to showcase the developmental pattern of the Chinese high-speed rail system.

Chapter 4 investigates the policy and regulations of transport nodes and nodal systems. The purpose is to provide a wide assessment of airport policy and regulatory systems in general, with a specific focus on Canada. Consideration is given to recent government-initiated reviews of the regulatory processes and regimes (e.g., Commerce Commission, Airport Authorities Act, and Canada Transportation Act Review). In so doing, broader issues of regulation and policy as they pertain to nodes and nodal systems are considered. The chapter begins with a spatial and economic assessment of the role of nodes in transport systems. It shows that spatiality, nodal concentration, network density, and gravity are variables to consider in the economic viability of nodal systems. This presents an interesting challenge both for government regulation and commercial efficiencies, namely, how best to ensure that the two intersect to achieve maximum social benefits. The chapter then considers salient regulatory, legal, and policy issues in more detail