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Logistics, Inter modal and transport Costs
A Research Project Presented to
MR.WOODROW ROY C. TUMULAK ED.D. (CAR)
Faculty
University of Cebu Lapu Lapu and Mandaue
Cebu
In Partial Fulfillment of the Requirements for the course
English 2M (Writing in the Discipline)
Submitted by:
Gilbert Allaa
Jan Michael Caete
Ray Martin Dimpas
Second Semester, 2012-13
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APPROVAL SHEET
This Research Project entitled Logistics, Intermodal and Transport Costs is prepared and
submitted by Group___in partial fulfillment of the requirements in English 2M (Writing in the
Discipline) has been examined, accepted and approved.
MR.WOODROW ROY C. TUMULAK ED.D. (CAR)
Instructor
Date: 21 March 2012
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ACKNOWLEDGEMENT
Foremost, we would like to express my sincere gratitude to my Instructor Mr.Woodrow
Roy C. Tumulak for the continuous support of our research study, for his patience,
motivation, enthusiasm, and immense knowledge. His guidance helped me in all the
time of research and writing of this thesis. I could not have imagined having a better
advisor and mentor for my research study.
To the light, our god, who guided us through the way, And Mr.Woodrow Roy C.
Tumulak, for his great efforts of supervising and leading us, to accomplish this fine
work.To our friends and families, they were a great source of support and
encouragement, we thank them all and wish them all the best in their lives.To our
mothers and fathers, for their warm, kind encourage, and love.To every person gave us
something to light our pathway, we thank them for believing in us.Keep your dreams
alive. Understand to achieve anything requires faith and belief in yourself, vision, hard
work, determination, and dedication. Remember all things are possible for those who
believe.
And to my group mates who helped to finish this work as possible as they can.
http://www.searchquotes.com/quotation/Keep_your_dreams_alive._Understand_to_achieve_anything_requires_faith_and_belief_in_yourself%2C_vision/18811/http://www.searchquotes.com/quotation/Keep_your_dreams_alive._Understand_to_achieve_anything_requires_faith_and_belief_in_yourself%2C_vision/18811/http://www.searchquotes.com/quotation/Keep_your_dreams_alive._Understand_to_achieve_anything_requires_faith_and_belief_in_yourself%2C_vision/18811/http://www.searchquotes.com/quotation/Keep_your_dreams_alive._Understand_to_achieve_anything_requires_faith_and_belief_in_yourself%2C_vision/18811/http://www.searchquotes.com/quotation/Keep_your_dreams_alive._Understand_to_achieve_anything_requires_faith_and_belief_in_yourself%2C_vision/18811/http://www.searchquotes.com/quotation/Keep_your_dreams_alive._Understand_to_achieve_anything_requires_faith_and_belief_in_yourself%2C_vision/18811/http://www.searchquotes.com/quotation/Keep_your_dreams_alive._Understand_to_achieve_anything_requires_faith_and_belief_in_yourself%2C_vision/18811/http://www.searchquotes.com/quotation/Keep_your_dreams_alive._Understand_to_achieve_anything_requires_faith_and_belief_in_yourself%2C_vision/18811/http://www.searchquotes.com/quotation/Keep_your_dreams_alive._Understand_to_achieve_anything_requires_faith_and_belief_in_yourself%2C_vision/18811/7/29/2019 research papaers
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DEDICATION
This Research Paper is lovingly dedicated to our respective parents who have been our constant
source of inspiration. They have given us the discipline to tackle any task with enthusiasm and
determination. Without their love and support this project would not have been made possible.
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TABLE OF CONTENTS
CHAPTER I INTRODUCTION PAGES
A. RATIONALE OF THE STUDY 1-3
B. SIGNIFICANCE OF THE STUDY 4
CHAPTER II CONTENT OF THE STUDY
A. FACTS & FIGURE 5-10
B. ILLUSTRATIONS 11
CHAPTER III SUMMARY,RECOMMENDATION & CONCLUSION
A. SUMMARY 12
B. RECOMMENDATION 13
C. CONCLUSION 14-15
CHAPTER IV BIBLIOGRAPHY 16
CHAPTER V CURRICULUM VITAE 17-19
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CHAPTER I
THE PROBLEM AND ITS SCOPE
Logistics, Inter modal and transport Costs
Introdution
A.Rationale of the study
Fierce competition in todays market has forced business enterprises to invest in
and focus on supply chains. The growth in telecommunication and transportation
technologies has led to further growth of the supply chain. The supply chain, also known
as the logistics network, consists of suppliers, manufacturing centers, warehouses,
distribution centers and retail outlets, as well as raw materials, work-in-process
inventory and finished products that flow between the facilities.
The location of factories, warehouses and supply points in general, to serve
customers distributed over a network of cities is often influenced by transports costs.If
transport cost are uniform and linear with respect to distance, the total transport cost is
proportional to the sum of the distances from the supply points to the cities served, each
weighted by the volume of shipments.
Intermodal transport reflects the combination of at least two modes of transport in
a single transport chain, without a change of container for the goods, with most of the
route traveled by rail, inland waterways or ocean-going vessel, and with the shortest
possible initial and final journeys by road. Operational Research has focused mostly on
transport problems of uni-modal transport modes. We argue that intermodal freight
transportation research is emerging as a new transportation research application field,
that it still is in a pre-paradigmatic phase, and that it needs a different type of model
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than those applicated to uni-modal transport. In this paper a review is given of
the operational research models that are currently used in this emerging field and the
modeling problems, which need to be addressed.
people looking to ship goods (or move people) are likely to realize that it doesn't
always make sense to stick to just one mode of transportation. For example, cargo may
be offloaded from a ship onto a truck, which transfers it to a railyard, from which it will
be moved across the country by train.
Intermodal transportation may be more efficient and cheaper; in some cases,
however, it does have pronounced disadvantages in terms of speed and reliability.They
are too slow to operate at peak efficiency, intermodal transportation must also reduce
the amount of time spent waiting in depots for a new carrier to arrive or for cargo to be
unloaded.
The lack of reliability, Because of its reliance on more than one mode of transit,
intermodal transportation is also subject to lower overall reliability; as the chain of
different modes grows, the possibility of any link in the chain breaking down also
increases. This is particularly problematic when one of the modes of transport is rail;
railroads are more susceptible to delays introduced by bad weather or equipment
failure. For this reason, as well as concerns over speed, shippers that require reliable,
high-speed transportation are less likely to consider intermodal systems.
The other reason is the damage, Whenever cargo has to be shuffled around,
shippers risk the possibility of damage as the freight is transferred from one method of
transportation to another. Fortunately, this danger can be mitigated, but doing so
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generally involves overpacking by adding more bracing and protective material than
would normally be deemed sufficient.
This added weight and expense partially counteracts the advantages intermodal
transportation has in terms of energy efficiency and cost.The High infrastructure Costs
of Intermodal freight transportation also suffers from comparatively high infrastructure
costs. Containerization has lowered the cost and difficulty of transporting goods by
standardizing their form; shippers can easily move the same container from a ship to a
train to a truck. Handling these containers, however, requires that shippers have the
heavy-duty cranes and equipment necessary to manipulate large containers; this
infrastructure may not exist in all places, particularly in developing countries.
The reasons why we conduct this study is to know the advantages and
disadvantages of logistics and how to make a strategies for the safe and fatest delivery
of the cargo to the consumer.and the reason of how to improve the delay of the
products and the reasons that products are being delayed due to the calamities.
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B.Significance Of The Study
This study is significance because logistics and intermodal services play
important roles in transportation. Logistics refers to a company's program for efficiently
delivering goods to the customer. Intermodal pertains to the use of more than one type
of transportation to ship the goods.
It takes specialized skills, education and experience to work in the various
logistics and intermodal transportation careers. Logistics is the one important function in
business today. No marketing, manufacturing or project execution can succeed without
logistics support. For companies, 10 per cent to 35 per cent of gross sales are logistics
cost, depending on business, geography and weight/value ratio.
Logistics is comparatively a new term, but not the operation. Logistics has
existed since the beginning of civilisation. Raw material and finished products had
always to be moved, though on a small scale. Things began changing with the advance
in transportation.
Population began moving from rural to urban areas and to business centres. No
longer did people live near production centres, nor did production take place near
residence centres. The geographical distance between the production point and
consumption point increased. And logistics gained importance.
Another factor has come into play recently. Since the early 1990's, the business
scene has changed. The globalization, the free market and the competition has required
that the customer gets the right material, at the right time, at the right point and in the
right condition at the lowest cost.
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refinements and sophistication by the introduction of the so-called "trailer train" which uses the
same trailer as a vehicle on the road and a rail vehicle on the rail. In other words, the trailer
moves on its wheels as a truck on the road but the wheels can be retracted by an air suspension
system and connected to a rail bogie for movement by rail. At the end of the rail journey, the
conversion back to being road vehicle is effected for delivery of the goods to the customers. Sea
train: This is another innovation in the multimodal transport system involving the use of rail and
ocean transport. It is similar to the Ro-Ro system except that in the place of the Ro-Ro vehicle a
rail car is used so that geographically separated rail systems can be connected by the use of an
ocean carrier. Typically these vessels are long and thin and consist of one main deck running the
length of the ship. They are quicker at loading trains than general cargo vessels since the trains
carriages do not need to be detached from one another.
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The Principal Issues
For developing an efficient intermodal/multimodal transport system, the need of the hour is to look
into the three principal issues infrastructure development, regulatory / policy reforms and
investment in technology.
1.Infrastructure development: Intermodal/Multimodal transport builds on the operational efficiencies
of the transport system. Without adequate infrastructure, the incremental benefits of intermodal
transport will be negligible.Necessary infrastructure development to provide for compatibility between
modes, less friction costs, low dwell times, less pilferage and increase in containerization is basic to
growth of intermodal transport.
2.Regulatory reforms: Intermodal/Multimodal transport operations need to be appropriately regulated
with an objective of controlled development of the sector, driving growth while mitigating possible risks.
Generally, controls may be placed on licensing, pricing, contracting and service standards. For the
growth of international intermodal transport, necessary changes may be required in the customs
procedures and export-import procedures among others. For domestic transport, changes in Cabotage
laws, octroi levies, privatization of railways and such moves.
3. Investment in technology: An Intermodal/Multimodal operator enters into a single contract with the
shipper, but multiple contracts with transporters, customs agents, ports / airports, railways, warehouse
operators and other related entities. The voluminous documentation requirements and need to
coordinate with a number of parties creates a need for appropriate information technology support.
Additionally, the transport and warehousing technology must itself be up-to-date to facilitate accurate
tracking of shipments and reduce logistics cost and time.
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Service Highlights
Door-to-door, door-to-ramp, ramp-to-door, and ramp-to-ramp services.
Exclusive access to APLs growing pool of Ocean53 containers and related
equipment for domestic shipments.
Long-term contracts with all U.S. Class 1 railroads.
Established relationships with experienced and reliable drayage partners.
Seamless rail integration at APLs global ocean gateways in Los Angeles,
Oakland and Seattle.
Leader in the U.S./Mexico cross-border intermodal transportation market.
Broad pool of container types and sizes, including 20, 40, 45, 48 and 53 .
Large, growing investment in domestic 53-foot containers and related
Equipment.
Domestic and cross-border transportation management solutions.
Consolidated invoicing.
Standard and Expedited truckload services.
Refrigerated/temperature controlled options.
Dedicated asset solutions.
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Customer-Focused Service
Experienced customer service teams provide local expertise and business
Relationships.
Door-to-door management of shipments throughout the NAFTA region.
Close coordination with all parties involved including shipper, consignee,
forwarder, customs broker, railroad and motor carrier.
Regular analysis of the intermodal market and your transportation needs to
ensure the most competitive services and pricing available.
Box Car management, including consolidation, tracking, cross-dock and
Delivery.
Benefits to Your Business
Reduced carbon footprint when moving via intermodal stack versus longhaul
truck service.
Seamless integration of your global transportation and logistics programs .
Route optimization ensures the most time and cost-effective solution moving
from point A to B.
Advanced technology provides end-to-end product visibility from origin to
Destination.
Outsourced convenience with single source accountability.
Proven excellence from an established leader in logistics services.
Cost advantages over traditional truck transportation.
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TABLE 1 SUMMARY OF TRUCK WAITING COST
Hourly Rate Opportunity cost
of hourly
Hourly truck rate 26.55 50.00
Waiting time (min) 72 72
Number of lanes 3 3
Holding pen size (trucks) 40 40
One truck waiting cost (72 min) 31.86 60
40 trucks waiting cost/hour 1,274 2,400
Weekly cost of the 72 min waiting time 6,372 12,000
Annual waiting cost of friday 66,269 124,800
Annual cost of 72 mins of waiting 331,344 624,000
Annual cost of 8 hour of waiting 2,548,000 4,800,00
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B. ILLUSTRATIONS
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B. RECOMMENDATION
The companies will try a effective intermodal transport so that there goods will
never delayed. And the shipping company will be resposible for the safety of the
cargoes.
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C. CONCLUSION
The exploratory results suggest that in the specific case under investigation initial
investment in a full-service intermodal transportation and logistics facility would
not be well received and would be difficult to justify from a short-term financial
and economic return standpoint. Rather, an approach focused on initial provision
of specific transportation services seems to make more sense. Provision of
intermodal services that link motor carriage, rail, and air transportation would
present a focused marketing strategy centering on services that could more
readily be sold to a broader market. Additionally, freight terminal facilities that
provide opportunities for consolidating inbound and outbound freight and
interlining with local cartage and drayage and short-line rail service also seem to
fit the profile of a measured approach to service roll-out. Warehousing and
information services that facilitate international shipping may also find a profitable
market niche.
Public and private investors and service providers pursuing regional market entry
should identify the firms that comprise the "favorable" segment. Based upon the
interviews conducted for this study, one or more high image finns in the target
area that would be receptive to using a handful of focused services available at a
regional facility may provide the volume for economies of scale in the early going.
As the facility proves its value to well-known customers, it might then be feasible
to expand capabilities to include more of the integrated service offerings. Growth
could come from expanding revenues from existing customers as well as by
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attracting new customers encouraged by the successes of established
relationships. The respondents indicated, however, that optimism must be
accompanied by a pragmatic realization that changes in shipping and supply
chain patterns are slow in coming. Success ultimately depends upon service
providers' ability to implement quality service offerings that provide real value:
improving customer service levels at competitive cost.
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CHAPTER IV BIBLIOGRAPHY
WEBSITES:
http://en.wikipedia.org/wiki/Logistic_function
http://www.englandlogistics.com/intermodal-transportation
http://www.apllogistics.com/wps/portal/apll?WCM_GLOBAL_CONTEXT=/APLL_ContentLib/APL
L/APLL_SA_Home/SA-SupplyChainServices/SA-GlobalFreightManagement/APLL-SA-
LandTransportServices/APLL_SA_IntermodalTransportation
http://www.trglogistics.com/
http://www.bnsf.com/intermodal/intermodal-for-logistics-providers.html
http://www.oceancareers.com/2.0/view_program.php?program_id=48
http://www.sciencedirect.com/science/article/pii/S1366554503000723
http://www.ehow.com/info_8018455_logistics-intermodal-transportation-careers.html
http://www.roarlogistics.com/
http://www.globaltrade.net/f/market-research/text/Mexico/Transportation-and-Storage-
Logistics-and-Intermodal-Transportation-Sectors-in-Mexico.html
http://en.wikipedia.org/wiki/Logistic_functionhttp://en.wikipedia.org/wiki/Logistic_functionhttp://www.apllogistics.com/wps/portal/apll?WCM_GLOBAL_CONTEXT=/APLL_ContentLib/APLL/APLL_SA_Home/SA-SupplyChainServices/SA-GlobalFreightManagement/APLL-SA-LandTransportServices/APLL_SA_IntermodalTransportationhttp://www.apllogistics.com/wps/portal/apll?WCM_GLOBAL_CONTEXT=/APLL_ContentLib/APLL/APLL_SA_Home/SA-SupplyChainServices/SA-GlobalFreightManagement/APLL-SA-LandTransportServices/APLL_SA_IntermodalTransportationhttp://www.apllogistics.com/wps/portal/apll?WCM_GLOBAL_CONTEXT=/APLL_ContentLib/APLL/APLL_SA_Home/SA-SupplyChainServices/SA-GlobalFreightManagement/APLL-SA-LandTransportServices/APLL_SA_IntermodalTransportationhttp://www.apllogistics.com/wps/portal/apll?WCM_GLOBAL_CONTEXT=/APLL_ContentLib/APLL/APLL_SA_Home/SA-SupplyChainServices/SA-GlobalFreightManagement/APLL-SA-LandTransportServices/APLL_SA_IntermodalTransportationhttp://www.trglogistics.com/http://www.trglogistics.com/http://www.bnsf.com/intermodal/intermodal-for-logistics-providers.htmlhttp://www.bnsf.com/intermodal/intermodal-for-logistics-providers.htmlhttp://www.oceancareers.com/2.0/view_program.php?program_id=48http://www.oceancareers.com/2.0/view_program.php?program_id=48http://www.sciencedirect.com/science/article/pii/S1366554503000723http://www.sciencedirect.com/science/article/pii/S1366554503000723http://www.ehow.com/info_8018455_logistics-intermodal-transportation-careers.htmlhttp://www.ehow.com/info_8018455_logistics-intermodal-transportation-careers.htmlhttp://www.roarlogistics.com/http://www.roarlogistics.com/http://www.globaltrade.net/f/market-research/text/Mexico/Transportation-and-Storage-Logistics-and-Intermodal-Transportation-Sectors-in-Mexico.htmlhttp://www.globaltrade.net/f/market-research/text/Mexico/Transportation-and-Storage-Logistics-and-Intermodal-Transportation-Sectors-in-Mexico.htmlhttp://www.globaltrade.net/f/market-research/text/Mexico/Transportation-and-Storage-Logistics-and-Intermodal-Transportation-Sectors-in-Mexico.htmlhttp://www.globaltrade.net/f/market-research/text/Mexico/Transportation-and-Storage-Logistics-and-Intermodal-Transportation-Sectors-in-Mexico.htmlhttp://www.roarlogistics.com/http://www.ehow.com/info_8018455_logistics-intermodal-transportation-careers.htmlhttp://www.sciencedirect.com/science/article/pii/S1366554503000723http://www.oceancareers.com/2.0/view_program.php?program_id=48http://www.bnsf.com/intermodal/intermodal-for-logistics-providers.htmlhttp://www.trglogistics.com/http://www.apllogistics.com/wps/portal/apll?WCM_GLOBAL_CONTEXT=/APLL_ContentLib/APLL/APLL_SA_Home/SA-SupplyChainServices/SA-GlobalFreightManagement/APLL-SA-LandTransportServices/APLL_SA_IntermodalTransportationhttp://www.apllogistics.com/wps/portal/apll?WCM_GLOBAL_CONTEXT=/APLL_ContentLib/APLL/APLL_SA_Home/SA-SupplyChainServices/SA-GlobalFreightManagement/APLL-SA-LandTransportServices/APLL_SA_IntermodalTransportationhttp://www.apllogistics.com/wps/portal/apll?WCM_GLOBAL_CONTEXT=/APLL_ContentLib/APLL/APLL_SA_Home/SA-SupplyChainServices/SA-GlobalFreightManagement/APLL-SA-LandTransportServices/APLL_SA_IntermodalTransportationhttp://en.wikipedia.org/wiki/Logistic_function7/29/2019 research papaers
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CURRICULUM VITAE
Ray Martin Dimpas
Address: Consolacion, Cebu
Contact #:09234115187
PERSONAL BACKGROUND
Age:Sex:
Birth Date:Birth Place:Religion:Height:Weight:EDUCATION BACKGROUND
TERTIARYSchool Name:Course:Year:
SECONDARYSchool Name:Year:
PRIMARYSchool Name:Year:
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CURRICULUM VITAE
Gilbert Allaa
Address: Consolacion, Cebu
Contact #:09234115187
PERSONAL BACKGROUND
Age:Sex:Birth Date:
Birth Place:Religion:Height:Weight:EDUCATION BACKGROUND
TERTIARYSchool Name:Course:Year:
SECONDARYSchool Name:Year:
PRIMARYSchool Name:Year:
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CURRICULUM VITAE
Jan Michael Caete
Address: Lilo-an, Cebu
Contact #:09232324790
PERSONAL BACKGROUND
Age: 18Sex: maleBirth Date: March 26, 1994
Birth Place: cebuReligion: Roman CatholicHeight: 54Weight: 56 LbsEDUCATION BACKGROUND
TERTIARYSchool Name: UCLMCourse: BSMTYear: 2012-2013
SECONDARYSchool Name: La Consolacion CollegeYear: 2011-2012
PRIMARYSchool Name: Our Lady Of Carmel Children Learning CenterYear: 2007-2008
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