SENER Ingenieríay Sistemas Ports, Water & Environment Section, C/Creu Casas i Sicart Parc de l Alba Cerdanyola del Vallès Barcelona

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1 Joural of hippig ad Ocea Egieerig 5 (2015) / / D DAVID PUBLIHING Freight Trasport Usig hort ea hippig Xavier Aetller ENER Igeieríay isteas Ports, Water & Eviroet ectio, C/Creu Casas i icart Parc de l Alba Cerdayola del Vallès Barceloa Abstract: The icreasig ibalace betwee road ad aritie trasport has led to saturatio of the terrestrial ifrastructures For this reaso, the developet ad aalysis of a iterodal freight trasport which is safe, reliable ad sustaiable is the first step to a ore balaced growth of other trasport optios I this sese, (hort ea hippig) rises like a real ad efficiet alterative to the lad road-based trasport as well as itegrated to a ultiodal syste door to door for the freight distributio This paper ais to evaluate ad idetify all those paraeters required to deterie the characteristics of a service uder a theoretical approach The icreasig growth of the trasport arket deads to the aritie trasport a adaptatio effort to the redistributio space processes of productio ceters ad cosuptio ad, as a result of it, of the logistic flows ad trasport For this reaso, a specific ethodology has bee developed to odel all those phases itegrated i the logistic chai of The fial purpose is to deterie costs ad tie of each oe of the, for its later ipleetatio i a heuristic algorith of routig aalysis The ai drivig factors that deterie uder which coditios the represets a effective ad a feasible solutio to road freight are also idetified Iforatio regardig Europea Uio progras to proote the is also preseted for a better uderstadig of the ways of fudig sustaiable freight trasport projects This ivestigatio states a iitial basis for evaluatig the copetitiveess of cocepts, ad shows where arket ad eviroetal circustaces could be hadled i order to ehace the copetitiveess of Key words: hort ea hippig, Barceloa, cotaier, port 1 A Theoretical Approach to the hort ea hippig 11 Buildig the Model A ay-to-ay approach has bee developed to build a cost-tie odel The door-to-door trasport odel icludes three ai parts: Road freight trasport Icludes all road based ad lad operatios which cosue tie ad distace Port terial operatios (either origi or destiatio) This iterface icludes all port terial operatios that allow chagig the lad trasport ode to aritie These activities oly cosue tie ea trasport Icludes the oveet of cargo by sea which cosues tie ad distace For ay origi-destiatio pair, the odel allows that the freight trasport ca be a pure road Correspodig author: Xavier Aetller, Mc, research fields: ports & logistics, port ifrastructures, trasport plaig Eail: xavieraetller@gail chai fro ay origis to ay destiatios or a typical chai that icludes the sea lik For the sake of clarity, the odel oly allows oe sea lik betwee ay origi ad ay destiatio Please refer to Fig 1 for a cocept schee of those possibilities The odel is fed with Cobb-Douglas equatios which have bee obtaied through the aalyses of thirty-oe (31) RoRo/RoPax vessels ad arketlad ad port freight trasport costs of the south Mediterraea regio tock costs have ot bee icluded i the table Ct ( dij ) dij (1) Tt ( dij ) dij (2) 0441 C op ( ) (3) 0483 ( ) 0037 (4) T op 5 C ( ) fi ( ) i1 (5) 0937 f1( ) (6) 0937 f 2 ( ) (7) 0216 f3( ) (8) 0673 f4( ) (9)

2 144 Freight Trasport Usig hort ea hippig Table 1 odel equatios ource: Ow elaboratio Ite Lad costs ( ) Road trasport Lad tie (h) Port operatio costs ( ) Port operatios Terial tie (h) ea costs Capital vessel costs ( /day) Operatio & Maiteace costs( /day) ea trasport Crew costs ( /day) Fuel costs ( /day) Port taxes ( /stop) ea tie (h) f5( ) (10) d T (, d ) (11) where, dij lad distace (k); d sea distace (autical iles, i); gross toage of the vessel (GT) It is iportat to highlight that the gross toage of the vessel () has bee selected as the variable to write the equatios The gross toage ca be writte as a fuctio of the total uber of platfors (or dead) that the vessel ca trasport: 1699 ( ) 3532 (12) where, axiu capacity of the vessel i ters of the uber of platfors It should be oted that costs are i euro (2005 base year) Local differeces have a great ipact o the equatios preseted i Table 1 ad equatios should be developed accordigly For further iforatio regardig odelig details please refer to AMETLLER, XAVIER i AURÍ, ERGI (2007) 12 Defiig a Trasport Proble a iple Approach For a certai group of lad origis ad destiatios related to a fixed sea lik (sae port of origi ad port of destiatio) the logistic proble to solve is to fid the routes that iiize the overall cost of freight trasport subject to certai restrictios Hece, let the origis be i N 1,2,3,, destiatios j M 1,2,3,, ad the platfor dead p ij (or whatever uit of trasport) that should be trasported fro i to j by road or usig The followig expressios will deterie the fuctio to be iiized: if the platfor (or travel dead) p ij is 1 X ij fro i to j by road (13) 0 o the cotrary if the platfor (or travel dead) 1 Y ij pij uses a port (14) 0 o the cotrary Wih uber of trucks (1 platfor per truck) fro the lad origi i to the port of origi; Whj uber of trucks fro the lad destiatio j to the port of destiatio; Lad-origis 1 2 Lad-destiatios 1 2 i Port operatios ea trasport Port operatios j Fig 1 May-to-ay odel ource: Ow elaboratio

3 Freight Trasport Usig hort ea hippig 145 Wij uber of trucks that ake a pure road trasport; Wh vessel capacity (i ters of platfors) Additioally, For each origi-destiatio pair there will be oly oe trasport choice i 1,2,3,, X ij Y ij 1 (15) j 1,2,3,, i 1,2,3,, X ij, Y ij 0,1 (16) j 1,2,3,, The total uber of trucks at origi or destiatio (or equivaletly the total uber of platfors at the port of origi or destiatio) will be equal or less to the overall capacity of the vessels at the port of origi To obtai i1 j1 W W ih hj W ( ) h W ( ) h i 1,2,3,, (17) j 1,2,3,, (18) W h, Eq 12 ca be rewritte as: ( ) (19) The followig ters are related to cost ad tie estiatios ad are also used Please refer to Eqs(1)-(19): dij road distace betwee the origi i ad the destiatio j (k); d ih road distace betwee the lad origi i to the port of origi (k); d hj road distace betwee the port of destiatio to the lad destiatio j (k); d sea distace fro the port of origi ad the port of destiatio (autical iles, i); Ct lad uit cost ( /h); C op port operatios uit cost (per platfor, /p); C sea uit costs (per platfor, /p); r occupatio vessel factor (ratio betwee the existig cargo ad the axiu cargo of the vessel); profit of the services (%); tij lad tie duratio (by truck) usig pure lad trasport (h) fro the origi i to destiatio j ; lad tie duratio betwee the lad origi i tih to the port of origi (h); thj lad tie duratio betwee the port of destiatio ad the lad destiatio j (h); Top port operatio tie (h); T sea tie duratio (h) The cost logistic equatio to be iiized is the followig: C t ( dij ) Wij X ij C t ( dih ) Wih i1 j1 i1 C t ( d hj ) Whj C op ( Wih ) j1 i1 C op ( Whj ) C (, d, r, ) Wh j 1 (20) Please ote that the dead distributio (i ters of platfor dead p ij betwee ad origi ad a destiatio give a total freight dead P ) ca be estiated by the widely used gravitatioal odel based o the total populatio i 1,2,3,, pij ij P (21) j 1,2,3,, With, pij platfors with origi i ad destiatio j ; P total freight dead betwee the origis i ad destiatios j ; ij Gravitatioal weight defied by: p p i j ij i 1,2,3,, p p (22) j 1,2,3,, i1 i j1 pi populatio of the origi i ; p j populatio of the destiatio j j 13 olvig a Trasport Proble a iple Approach Eq 20 cotais oe or ore ukows, which are free variables for which values are sought that cause the iiu cost coditio to be fulfilled To be precise, what is sought are ofte ot ecessarily actual values, but, ore i geeral, atheatical expressios Additioal expressios are give, i a heuristic for, to assess the logistic probles which are defied as steps:

4 146 Freight Trasport Usig hort ea hippig tep 1: The algorith starts by defiig a iitial occupatio factor r 0 (ratio betwee the existig cargo ad the axiu cargo of the vessel), which allows to defie the cost per platfor whe usig the ultiodal chai tep 2: The algorith copares the cost of a trasportig oe platfor fro i to j by road or as follows: i 1,2,3,, if Cij, Cij, ROAD X ij 0 j 1,2,3,, (23) r r 0 tep 3: The algorith checks the Eqs (17)-(18) to ake sure that the capacity of the vessels is ot overpassed The vessel is loaded startig with the biggest order p ij siulatig the fact that copaies with high export volues have preferred cotracts with shippig copaies After this loadig criteria, there will be a first approxiatio of the uber of trucks, fro a origi i that are allowed to go the port of origi Eq 22 describes the vessel loadig criteria: ih axw ih if W ih W i1 j1 Y ij W h i 1,2,3,, j 1, 2,3,, (24) Wih W1 h,, W h W ih Where, 1 if the platfor (or travel dead) p ij uses Y ij a port (25) 0 o the cotrary Wih Nuber of trucks fro the lad origi i to the port of origi tep 4: Followig the steps above, a iitial solutio is stored i the atrix X ij which eets optiized cost criteria At this poit, the algorith updates the value of the occupatio factor r which was defied as a default uber i tep 1 with its actual value util a error tolerace (set at a value of r r 0 1% ) is reached: WihYij i 1, 2,3,, i1 (26) r j 1,2,3,, Wh Followig the step defied above the solutio atrix X is updated ij tep 5: Oce the occupatio factor r is stable, the algorith evaluates ad copares the tie duratio of each ode (road ad ) for each origi-destiatio pair A ew paraeter i the algorith t is icluded, which is the axiu tie percetage that the ca be slower copared to the road to retai the cargo For exaple, if t 25% ad followig ecooic criteria the freight should be oved by ( X ij 0 ), ad T ij, 49h ad T ij, ROAD 40 h, the algorith evaluates the coditio tt ij ROAD h1 25% h T ij, 1,, fulfilled i this case as 49h The purpose of this costrait is to provide a liit by which the tie flexibility is cosidered regardless of strictly cost criteria if X ij 0 T ij, i 1,2,3,, (27) 1 t T ij, ROAD X ij 0 j 1,2,3,, This fial step akes ecessary to update the solutio X ij ad repeat the sequece util the occupatio factor is stable This odel was successfully tested with real data of outh Mediterraea routes Kidly refer to AMETLLER, XAVIER i AURÍ, ERGI (2007) for a coplete descriptio of the odel ad a Microsoft Visual Basic code ipleeted i a Excel spreadsheet 14 Key Factors i the The odel is useful to predict certai key factors that ay be cosidered for trasport plaers ad decisio akers i order to address ew regulatios or developets regardig this ultiodal freight trasport ad cotribute positively i the future success of Please ote that there are a good uber of publicatios that describe a log list of eck bottles of the, such as heavy adiistratio procedures, port terial ifrastructure deficiecies, flexibility ad frequecy of the service The purpose of this sectio is to defie the key drivig factors of the which ca be iferred directly fro

5 Freight Trasport Usig hort ea hippig 147 the heuristic odel The followig characteristics are cosidered to defie a reasoable fraework of the hort ea hippig i the Europea outh Mediterraea regio ad set a basis of desig: ea distaces ragig fro 450 up to 800 autical iles (i); Fleet size with a gross toage ragig fro 8,500 GT up to 30,000 GT; ultiodal routes that iclude fro 30% up to 75% of lad freight trasport of the total trip distace Makig several siulatios the key factors idetified are suarized as follows: Key Factor 1: The total road distace i the ultiodal route should ot exceed the 60% of the total distace to be copetitive Key Factor 2: Accordig to the area icluded i the scope of the aalyses (outh Mediterraea regio) port terial costs ad port operatio tie (vessel loadig ad uloadig) are drivig the cost & tie copetitiveess of the agaist the road trasport Ivestets o port ifrastructure ad icrease the efficiecy i the operatios ay icrease the arket share of the ad proote the odal shift Key Factor 3: A carbo eissio reductio of up to 40% (copared to the curret situatio) ca be achieved if the predicted odal shift of the odel is obtaied The odel (2005 predictio) estiates that a odal shift of up to 20% of the pure road to the is possible (with regard to the cost & tie criteria defied above) which ay lead to a ore sustaiable trasport optio Note that exterality costs have ot bee icluded i the aalyses 15 Coclusio The icreasig growth of the trasport arket deads to the aritie trasport a adaptatio effort to the redistributio space processes of productio ceters ad cosuptio ad, as a result of it, of the logistic flows ad trasport The odel preseted is just a first step to policy akers or trasport plaers to deostrate that hort ea hippig is a real alterative to the pure lad trasport The tool preseted is able to predict the cost ad tie reductios of the overall freight trasport of a regio, % Cases where cost is copetitive agaist pure road trasport 100% 95% 90% 85% 80% 75% 70% 65% 60% 55% key drivig factors: Maxiu total road distace to be copetitive H: High Gross toage = 30,000 GT M: Mediu Gross toage = 15,000 GT L: Low Gross toage = 8,500 GT 50% 25% 35% 45% 55% 65% 75% 85% % Total road distace i the logistic chai Miiu is set at 30% 450 i (autical iles) - H 600 i - H 800 i - H 450 i - M 600 i - M 800 i - M 450 i - L 600 i - L 800 i - L Fig 2 Freight trasport aalyses cosiderig differet gross toage capacities ad differet sea liks i the ultiodal optio ource: Ow elaboratio

6 148 Freight Trasport Usig hort ea hippig Cost copariso ( ) % 36% 100% % - Cost Pure Lad - Cost Lad trasport Port terial ea lik Tie copariso (h) % 26% 100% % - Tie Pure Lad - Tie Lad trasport Port terial ea lik Fig 3 Cost (up) ad tie (dow) structure of the typical situatio where is ore copetitive tha the pure road freight trasport Costs (2005 EUR) are per platfor ource: Ow elaboratio which ay be used to pla progras to develop ad icet this kid of sustaiable freight trasport ultiodal optio 2 Europea Fraework of the 21 EU Iitiatives The EU visio is to pla a aritie trasport space without barriers which exteds the Coo Market to sea trasport The effective ipleetatio pre-supposes a siplificatio of adiistrative procedures ad a chage i the existig regulatory fraework supported by the developet of electroic data exchage systes ad surveillace capabilities by coastal ad authorities i ports Two differet iitiatives have bee itroduced i the EU to proote the The first oe is the TEN-T, a high level progra which icludes the iproveet of existig aritie liks to establish ew viable, regular ad frequet aritie liks for the trasport of goods betwee Meber tates i order to

7 Freight Trasport Usig hort ea hippig 149 reduce road cogestio The secod progra is the Marco Polo which ais to shift freight fro the roads to ore eviroetally friedly odes ad to support coercially-orieted services i the freight trasport arket ad fiace actios ivolvig cadidate coutries The characteristics of both progras are briefly suarized below: I geeral, the approach to corridors (TEN-T) or through the subvetio of services (Marco Polo I ad II) have ot bee fully covicig as they see to be based ore o lobbyig tha o objective fidigs Prootig the greater ivolveet of PPP (Public Private Parterships) is the ew approach that ay overcoe the difficulties of the past Please refer to the Europea Coissio web portal for ore details regardig these iitiatives I both cases, a freight dead odel like the oe preseted i this paper should be used for a preliiary estiatio of the fuds to be assiged to the prootio progra 22 A Referece: Port of Barceloa The Port of Barceloa is the leadig Port i pai i hort ea hippig () traffic The dead for this type of trasport has led the Port to set up a icreasig uber of short-distace aritie lies, which lik it to other Mediterraea ad North Africa ports The copetitiveess of hort ea hippig ad the ivestet ade by port facilities ad shippig lies to ake this a real alterative to road trasport ca be clearly see by the spectacular growth figures I 2013, the oved a total of 100,716 iterodal trasport uits (ITU-equivalet to trucks, platfors ad trailers) which represets a year-o-year icrease of 10 %, drive aily by reewed Table 2 EU progras to proote the ource: Ow elaboratio fro Ae Bårseth: Executive Agecy for Copetitiveess ad Iovatio (EACI) Marco Polo Uit Progra TEN-T MARCO POLO Drivig force Public sector drive Private sector drive Actors Top-dow (Meber tates) Botto-up (udertakigs) chedule Log-ter hort-ter Missio Creatio of trasport etwork Modal shift objective Target Ifrastructure Trasport services Ifrastructure trategic ifrastructure Acillary ifrastructure services/week fro the Port of Barceloa No EU destiatio EU destiatio 20 ervices/week Fig 4 services per week i the Port of Barceloa ource: Ow elaboratio fro Port of Barceloa data

8 150 Freight Trasport Usig hort ea hippig Fig 5 Grialdi Terial i the Port of Barceloa ource: Port de Barceloa, 2014 growth i traffic with Italy ad a high export capacity of the hiterlad Thaks to its strategic locatio ad its ever-larger ad iportat hiterlad, the Port of Barceloa is developig strategies to icrease the uber of services ad offer a ore flexible ad copetitive aritie trasport service to its copaies ad cliets The Port curretly has berthig, loadig ad uloadig areas dedicated to this particular ode of trasport ad has becoe a touchstoe for this type of short distace traffic The Port has three specialized terials for trucks, vehicles ad passegers ad frequet services betwee Barceloa ad the ai ports of the Mediterraea ad North Africa (refer to Fig 4) The last terial i the Port of Barceloa (refer to Fig 5) received a TEN-T cotributio of 14 illio euros (10% of total project works cost) uder the key objective of the iproveet of iterodal trasport, as it will allow upgradig the efficiecy alog the whole logistics chai betwee the Iberia Peisula, North Africa ad Italy through the reoval of existig bottleecks Refereces [1] Aetller, Xavierad aurí, ergi 2007 Optiizació del trasporte de ercacías ediate el trasporte arítio de corta distacia Uiversitat Politécica de Cataluya Barceloa Accessed at Aug 10th, Me%C3%B2riapdf [2] Autoritat Portuària de Barceloa 2014 Accessed at Aug 10th, [3] Caarero, Alberto, ad Polo, Gerardo 2005 Ro-Ro hips for hort ea hippig PIANC Magazie (188): [4] Culliae, K, ad Khaa, M 1998 Ecooies of cale i Large Cotaier hips Joural of Trasport Ecooics ad Policy (33): [5] Jasso, J O, ad heeerso, D 1988 A Model of cheduled Lier Freight ervices: Balacig Ivetory Cost agaist hipowers Costs The Logistics ad Trasportatio Review (21): 3 [6] Martíez de Osés, F Xavier ad Castells aabra, Marcel la 2005 Aálisis de los buques dedicados al trasporte arítio de corta distacia iteracioal e España Grupo de ivestigació TRANMAR Departaeto de Ciecias e Igeiería Náuticas-UPC pai [7] Miisterio de Foeto de España 2002 Ifore sobre el cabotaje couitario o trasporte arítio de corta distacia Docueto para el cosejo iforal de iistros de trasportes de la Uió Europea Gijó [8] Robusté, F 2005 Logística del trasporte Barceloa UPC